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GST Late Fee Calculator

The Goods and Services Act was launched in July 2017 and has been in force ever since. It is an indirect tax applied to the supply of goods and services and is one consolidated tax applied nationwide. The CBIT  (Central Board of Indirect Taxes and Customs) is the national regulatory body that takes care of all indirect taxes like excise, customs, and GST. All traders who have an annual turnover of more than 40 lakhs need to be registered as GST payers. 

The GST payers should file GST returns within due dates. The Government prescribes the dates. If taxpayers fail to file the returns within due dates, they will have to pay the late fee along with the accrued interest while filing GST returns. In such cases, the taxpayers need to register the NIL returns even if there is no activity.

What is GST Late Fee?

All liable GST payers are required to file GST Returns within the due dates prescribed by the Government. GST late fees will be charged under the following two cases:

  • If they fail to file the returns within the stipulated period, they will be charged some amount of late fees. 
  • This late fee is charged if there is a delay in filing the NIL returns. 

The amount of late fee charged will depend upon the number of days of delay from the due date. 

Suppose a business X has to file a GST return by the 25th. However, X files the GST 4 days after the date prescribed, i.e., on 28th January 2019.

Thus, X will be charged late fees for 3 days. This late fee will be deposited in cash.

The deposition of GST takes place through various types of forms, like Income Tax returns. These returns are divided into 13 categories based on the type of business. The GST portal is set up to charge a late fee on the following returns:

  • GSTR-4 
  • GSTR-3B
  • GSTR-5A 
  • GSTR-5 
  • GSTR-6 
  • GSTR-7
  • GSTR-8 
  • GSTR-9 

There are different due dates for different types of assessments, and due dates vary based on the turnover of the assessee.

GST Late Fee Penalty and Interest 

There are provisions for charging a penalty if GST returns are not filed on time. This penalty is in the form of extra payments. Thus, a late GST payment will include the following, along with the pending amount of taxes.

  • Late filing penalty for GST returns as prescribed by the department. 
  • Interest on every day the payment is overdue, after the last date.

Taxpayers have to be careful concerning GST filing as they will not be allowed to file a return for the current year if there is any pending fine from the last return, i.e., A taxpayer cannot file GST for a return without paying the fine of the last return.

GST Late Fee Charges

If the GST fee payer fails to file GST returns on time, the Central Government will apply late charges. Since the types of GST returns are different, there are different charges levied as late fees by the GST authorities. For this year, due to the COVID19 outbreak and the resulting lockdown, the Indian Government has relaxed many due dates to file GST for various categories of assesses from February to April 2020. Also, interest and penalty incurred during the impacted period (20th March to 30th June) have been given specific relaxations.

What is the Use of GST Late Fee Calculator?

The GST late fee calculation is essential to filing the late fee with taxes on time. These numbers can pose confusion and frustration for a person who is not well-versed in the GST fee calculation. For different types of assessments, there are different due dates. The estimate of the exact number of late days is different. Moreover, the due dates are set, based on the sales turnover of the assesses.

Such variation makes it challenging to understand and remember the due dates.

Not only due dates, the interest liabilities for various kinds of assesses also differ. These interest liabilities on the late returns also depend on the assessee turnover and their types. Some assesses also have reduced interest. This makes way for complexity and errors in the calculation of Interest charges and Late Fee calculations. These issues have led to the development of the GST late Fee calculator. 

Benefits of Using the GST Late Fee Calculator?

Here is a list of benefits that are available when you use a GST Late Fee Calculator:

  • It automatically calculates with accuracy the number of days of payment delay, late fee on the GST amount for the tax period, and any penalty charged.
  • It also calculates the interest on the pending GST.
  • It can be customized for all types of assesses, i.e., and it provides calculations under various GSTR forms.
  • This calculator will work for various available turnovers for businesses.
  • This tool can also be used for filing previous unreported tax liabilities.
  • The GST calculator can easily accommodate any extension of due dates and rebates in fees provided because of those extensions.
  • This tool provides a user-friendly interface that is easy to use and handle.
  • Any updates as per changed norms or altered calculations are also taken care of by this calculator.
  • It provides the results in an easy to understand manner with proper summarizations.

How Does the GST Late Fee Calculator work?

Various taxpayers use the GSTR forms under GST-3B, GSTR-7, GSTR-8, GSTR-5, GSTR-6, GSTR-4, GSTR-5A. These forms are used, to sum up, and pay pending tax and late fees.

  1. For GSTR 1, GSTR 3 and GSTR 4

    GSTR1-All sales or outward supplies of a taxpayer

    GSTR3- Monthly Summary of all sales, purchases along with GST liability (auto-generated)

    GSTR4-To be filled by Composition vendors, once every 3 months

    In case of these GST returns:

    The late fee charged is Rs. 50 per day. This is the reduced late fee that needs to be paid along with the pending tax amount. The maximum amount of late fees that can be charged is Rs. 10,000. This is in case of sales happening in that month.

  2. NIL Return Late Fee 

    In case there are no sales or a NIL return for GST is filed, or there is no GST amount owed, the taxpayer still needs to file his GST. 

    • If he fails to do so, he has to pay the late fee along with the tax. 
    • These late fees are Rs 20 per day. 
    • This fee cannot be more than Rs 10,000 at a time.
    • The assessee will also be charged with a reduced fine. This fine is of Rs.10 per day under CSGT, and it is of Rs.10 per day under SGST. 
  3. Non-Annual GST Return Late Fee

    Like all GST return assesses, the taxpayer has to file the tax on time, i.e., within the due date prescribed. Failing to do so will result in payment for a reduced late fee plus the original tax that has accrued on a non-annual basis. Also, the late fee will be charged for the number of days overdue from the due date prescribed.

    • The assessee is charged with a reduced fine of Rs.25 per day under CSGT.
    • This reduced fine is Rs. 25 per day under SGST.
    • This means that the total late fee per day will be Rs.50. 
    • If the assessee is filing under IGST, he needs to pay a reduced fine of Rs.100 per day.
  4. GST Annual Return Late Fee

    The other GST return filing rules and norms remain the same as those of non-annual return late fees. Here also, the late fee is charged depending upon the number of days the taxpayer is overdue from the filing due date. As of now, the late fee is reduced, keeping in mind the COVID-19 pandemic.

    • The late fee is Rs. 25 per day under CGST.
    • It is Rs. 25 per day under SGST.

    Please remember that the GST late charges mentioned above for all categories are the currently reduced charges as prescribed by the CBIC for a specified period.

    The table given below will quickly summarize the various late charges for GST late filing. This table provides the late fees fixed by the CBIC and the reduced late charges this year because of the COVID-19 pandemic.

    GST Late Fee Charges as set by CBIC, India
    For NIL Returns CBIS Fixed Charges Reduced Late Charges
    SGST Rs. 50 per day Rs. 10 per day
    CGST Rs. 50 per day Rs. 10 per day
    IGST Rs. 100 per day Rs. 20 per day
    For Regular Returns Rs. 50 per day Rs. 50 per day
    SGST Rs. 100 per day Rs. 25 per day
    CGST Rs. 100 per day Rs. 25 per day
    IGST Rs. 200 per day Rs. 100 per day

    It has to be noted that the Government has also waived off any interest accrued on the late filing. Earlier, 18% per annum interest was charged as a result of interest on the late filing of GST returns. Currently, till further notification from the CBIC, there will be NIL interest charged.

    Similarly, in case of any interest in output tax reduction, the CBIC had set the interest rate at 24% per annum. This charge has been waived off today, and there is a NIL interest charged on output.

    Also, any penalties charged, with or without fraudulent intentions of the assessee are waived off currently.

Waiver of GST Late Fees

The CBIT has prescribed a waiver of GST late fee under particular circumstances. This waiver is decided based on the business turnover of the taxpayer. It has to be kept in mind that these GST late fee waivers are done only for a specific period and not on a permanent or a fixed basis.

Currently, the CBIC has provided GST late fee waivers for taxpayers who were supposed to file for the period February 2020 to April 2020.  This has been done because of the loss small businesses have suffered owing to the lockdown because of the Corona pandemic in the country. This waiver is applicable for assesses who are to file their GSTR-1 and GSTR-3B before 24th June 2020.

As per GST Law Notification Number 55/2020-CT, all GST related filing and payment work for the period of 20.03.2020 to 30.08.2020, has been extended till 31.08.2020.

FAQ's

  • Q: Is it necessary to file GST Return even if I do not have any amount owed?

    Ans: Yes, even if you do not have any GST amount owed during the given tax period, the GST return has to be filed. This is known as the GST Nil Return, which has to be filed in the relevant GSTR and submitted to the department. If you do not comply with the law, you will be required to pay a late fee and interest and, sometimes, even penalty.
  • Q: How is GST late filing penalty charged?

    Ans: Any taxpayer who attempts to commit an offense unintentionally related to GST payments will be charged a penalty amounting to 10% of the unpaid tax. If the offense is committed intentionally with the purpose of fraud, the taxpayer will be charged 100% of the payable tax as the penalty and the original tax amount. He can also be arrested and sent to jail for fraud.
  • Q: Can I file my GSTR 3B even after the due date?

    Ans: As a major relief, the CBIC, India, has extended the due date for filing the GSTR-3B due in March, April, and May 2020 till the last week of June 2020. Any interest, along with any late fee, and penalty will NOT be charged. This relaxation is applicable for the taxpayers, whose average annual turnover is less than five crore rupees.
Written By: Paisawiki - Updated: 12 April 2021