Late Fees and Interest on GST Return

All about Late Fees under GST

As per GST laws, the Late Fee is an amount charged for delay in filing GST returns. It can be referred to as an overdue fine.

When a GST Registered business misses filing GST Returns within the prescribed due dates*, some amount of late fees is charged. The late fee is also applicable for the delay in filing NIL returns. For example, there are no figures to declare for sales or purchases for the month of December 2018 in the GSTR-3B. Still, this return must be filed.

The amount will depend upon the number of days of delay from the due date. GST return in GSTR-3B is filed on 23rd January 2019, 3 days after the prescribed due date i.e 20th January 2019. Late fees will be calculated for three days and deposited in cash.

However, currently, the GST portal is aligned to charge a late fee only on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9 only.

Amount of Late fees applicable

FOR ALL GST RETURNS EXCEPT GST ANNUAL RETURNS(GSTR-9)

• As per the Acts, for intra-state supplies, both the CGST and SGST Act prescribes following late fees:

• As per the IGST Act, for inter-state supplies, the late fee is approximately equal to the sum of fees prescribed under both CGST and SGST Act. Hence, Late fee is:

(* Subject to change via CBEC notifications)

• Nil filers must note late fee applicable as follows:

For example, a Taxpayer has filed GSTR-3B for the month of December 2017 (due date 20th Jan 2018) on 23rd January 2018.

Amount of late fees to be paid:

Rs. 50` per day  3 days = Rs. 150 (Rs. 75 CGST + Rs. 75 SGST)

If the above return was a return with ‘Zero’ tax liability then late fees would be:

Rs. 20` per day  3 days = Rs. 60 (Rs. 30 CGST + Rs. 30 SGST)
( ` Subject to change via CBEC notifications)

(*) CBIC has notified reduced amount of late fees for a delay in filing some GST returns for a temporary period as a relief measure for businesses having difficulties using GST portal. It is as follows:

• For Intra-state supplies,

• For Inter-state supplies,

• Nil return filers must note the reduced late fee applicable as follows:

FOR GST ANNUAL RETURNS(GSTR-9)

Up-to-date List of late fees changes

Following are the changes that have been made on the applicability of the late fee law:

Note: Rest of the returns like GSTR-7, GSTR-8, GSTR-5A or GSTR-9 will have late fees applicable to them as per the Act at normal fee.

** If paid before the waiver, this amount will be credited into the electronic cash ledger for use, to pay against the tax liability.

^ The previous notification 6/2018 was cancelled prospectively.

How to deposit Late fees with Government

Amount of Late fee applicable will automatically be calculated by the GST portal while submitting the GST returns.

The Late fee is paid in cash separately for CGST, SGST and IGST in separate electronic cash ledgers. GST return cannot be filed without the payment of the Late fee.

Late fee for the month includes previous month’s late fee charged due to delay in filing of the return. Also, non-payment or late payment of GST attracts Interest.


Quick View: Late Fees for GST Return as per GST Act

• All returns except Annual Returns: Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of Rs 5,000.
• Annual Returns: Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of 0.25% of Turnover.

All about Interest under GST

Interest  is applicable on Late Payment of GST Due

Interest has to be paid by every taxpayer who:

• Makes a delayed GST payment i.e. pays GST after the due date.
• Claims excess Input Tax Credit
• Reduces excess Output Tax Liability

Currently, GST has to be paid at the time of filing GSTR-3B and GSTR-4.

If GST is not paid within the due dates of filing return Interest at following rates has to be paid:

The Interest has to be calculated from the next day on which tax was due.

For example, a taxpayer fails to make a tax payment of Rs. 10,000 for the month of December 2017 (due date -20th Jan 2018). He makes the payment on 20th Feb 2018. Interest will be calculated as follows:

Rs. 10,000 * 31 days/365 * 18% = Rs. 153

Thus, it is important to make tax payment and file GST Return within due dates. ClearTax GST Software is a one-stop solution to file GST Returns quickly and easily. Use ClearTax GST Software and never miss a deadline.

For Further Reading and Understanding:

• How to Make GST Payment Online
• GST Returns Due Dates
• Claim GST Refund