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GST Late Fees and Interest Due Date for Taxpayers

GST Payment Due Dates

Goods and Services Tax (GST) which has subsumed all the other applicable indirect taxes levied on goods and services. With the implementation from the 1st of July 2017, it formulated the biggest-ever reform in the Indian tax structure. Filing under the GST regime is very important for each registered business and taxpayer. As the system is shifted towards online filing, the rules are quite strict and require to be filed GST returns on time.

A Brief Introduction To Late Fees under GST

Under the GST norms, a late fee is said to be the amount levied for the late GST return filing. The specified late fees shall get levied for every day of the delay if the GST-registered business is unable to furnish the returns of GST on the said due dates.

The late fee must be paid in cash and the assessee could not utilize the ITC which is available in the electronic credit ledger for the late fee payment. 

The subjected late fee would be applied for the late furnishing of the nil returns. For instance, would be needed to file the late fee irrespective of no sales or purchases and indeed no GST liability to show in the GSTR-3B.

On the number of days of delay from the last date, the late fee shall rely. On 23rd January 2024 GST return in GSTR-3B would be filed, three days post the specified last date i.e. 20th January 2024. For the 3 days, the late fees would get computed and the same must get deposited in cash. 

At the present time, the GST portal is placed to levy a late fee only on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7, and GSTR-9 only.

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Listed Below are the Due date for Taxpayers

Here are the types of taxpayers and the due dates for the GST payments

Assessee types

  • Regular-Monthly Taxpayer– 20th of the Next Month
  • Regular-Quarterly Taxpayer– 22nd & 24th of the Next Quarter
  • Composition – 18th of the Next Month or Quarter
  • Non-Resident – 20th of the Next Month
  • Input Service Distributor – 13th of the Next Month
  • TDS Deductor – 10th of the Next Month
  • TCS Collector – 10th of the Next Mont

Late Fee for GSTR 1:

The Late fees for GSTR-1 stand at Rs. 200 a day (Rs. 100 for CGST and Rs. 100 for SGST). Presently, the government does not consider the late payments for GSTR-1. GSTR-1 was not regarded in this calculator.

Late Fees for GSTR-9 and GSTR-9A:

For GSTR-9 and GSTR-9A the late fees are Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST) up to a limitation of 0.50 percent (0.25 percent for CGST and 0.25 percent for SGST) of turnover.

Late Fees for GSTR-10:

For GSTR-10 the late fees stand at Rs 200 per day (Rs. 100 for CGST and Rs. 100 for SGST). No upper limit is there to set the penalty. Towards the returns that are to get furnished the late payments should get levied. 

The interest levied on the GST Late Fee Payment:

As per the guidelines of the GST penalty, the assessee who does not consider filing their taxes within the time shall obligate to file an interest with an 18% rate per annum. The interest shall get levied for the day’s post the last date. 

Missing penalty on the GST Due Date:

When the assessee is not able to furnish the returns in the specified time then he is liable to file the late fee of Rs 50/day, i.e. Rs. 25 per day in each case of CGST and SGST (in case of any tax liability) and Rs. 20/day, i.e. Rs. 10/- day in each CGST and SGST (in case of Zero tax liability), as per the limit of Rs. 5000/-, from the furnished amount.

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    What is the Method to Deposit GST Late fees with the Government?

    During submitting the GST returns, the GST portal will automatically compute the late fee as applicable. 

    For CGST the late fee would get paid in cash while for the SGST the same would get paid in separate electronic cash ledgers. Without a late fee payment, the GST return could not get filed. 

    The late fee for the month comprises the previous month’s late fee because of the late filing of the return. A non-payment or late payment of GST draws Interest.

    Interest beneath GST & Calculation

    On the late payment of GST liability, the interest would be subjected to be applied on the net tax liability post diminishing the ITC claims. The interest would be required to get paid through each assessee who-

    • Performs a late GST payment i.e. pays CGST, SGST, or IGST after the due date.
    • Claims for higher ITC
    • Reduces excess output tax liability

    When the GST does not get filed at the specified last date of furnishing the return then the interest at the mentioned below rates would be applicable

    Tax paid after the due date18% per annum
    Excess ITC Claimed or excess reduction in Output Tax24% per annum

    For a distinct time, the interest would get diminished at the time of the covid-19 pandemic Read our article “GST calendar” for more information.

    The interest would need to be computed from the subsequent day on which the tax was unpaid. 

    For instance, an assesses is not able to make a tax payment of Rs. 10,000 for the month of December 2020, where 20th January 2024 was the last date. If he performs the payment on the date of 20th February 2024 then the interest for the late period (31 days: from 21st January till 20th February) will be computed as follows:

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

    Hence it is crucial to perform the tax payments and furnish the GST returns within the specified last dates. You are able to use Gen GST Software, which is the only solution to furnish the GST Returns quickly and smoothly. Use Gen GST Software and never miss a deadline.

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