The late fee, according to GST rules, is a sum paid for the late filing of GST returns. When a GST Registered company fails to file GST Returns by the prescribed due dates, a prescribed late fee will be paid on each day of error. The late fee must be charged in cash, and the taxpayer cannot use the Input Tax Credit (ITC) available by electronic credit ledger to cover the late fee.
Taxpayer Due Dates Under GST
Return Form under GST | Due Date |
GSTR-1 (Monthly) | 11th of the next month |
GSTR-1 (Quarterly) | 13th of the month succeeding the quarter |
GSTR-3B (Monthly) | 20th of the next month |
GSTR-3B (Quarterly) | 22nd or 24th of the month succeeding the quarter** |
CMP-08 (Quarterly) | 18th of the month succeeding the quarter |
GSTR-4 (Annual) | 30th of June succeeding the financial year for FY 2024-25 (Previously 30th of April succeeding the financial year) |
GSTR-5 (Monthly) | 13th of the next month |
GSTR-5A (Monthly) | 20th of the next month |
GSTR-6 (Monthly) | 13th of the next month |
GSTR-7 (Monthly) | 10th of the next month |
GSTR-8 (Monthly) | 10th of the next month |
GSTR-9 (Annual) | 31st December of the next financial year |
GSTR-9B (Annual) | 31st December of the next financial year |
GSTR-9C (Annual) | 31st December of the next financial year |
GSTR-10 (One time) | Within three months of the date of cancellation of the GST registration / date of cancellation order, whichever is later. |
ITC-04 (Annual/Half-yearly) | 25th April of the next FY, where AATO is up to Rs.5 crore, and 25th October of the same FY for Apr-Sep and 25th April of the next FY for Oct-Mar, where AATO exceeds Rs.5 crore |
GST Late Fees
Late Fee for GSTR 3B:
GSTR-3B late payments are Rs. 20 (Rs. 10 for CGST and Rs. 10 for SGST) per day for NIL returns and Rs. 50 (Rs. 25 for CGST and Rs. 25 for SGST) in all other scenarios. A NIL return is one in which there are no transactions but there are acquisitions. The maximum penalty is Rs. 10,000 (Rs. 5,000 for CGST and Rs. 5,000 for SGST) for each return.
Late payments for GSTR-3B for a month to be charged in the next month. You cannot file a month’s return unless you have paid the prior month’s GST late fee waiver.
Late Fee for GSTR 1:
Late fees for GSTR-1 are Rs. 200 a day (Rs. 100 for CGST and Rs. 100 for SGST). Currently, the government would not accept late payments for GSTR-1. GSTR-1 was not taken into account in this calculator.
Late Fees for GSTR-9 and GSTR-9A:
Late fees for GSTR-9 and GSTR-9A are Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST) up to a limit of 0.50 percent (0.25 percent for CGST and 0.25 percent for SGST) of turnover.
Late Fees for GSTR-10:
Late fees for GSTR-10 are Rs. 200 a day (Rs. 100 for CGST and Rs. 100 for SGST). There is no upper limit to the size of the penalty. Late payments must be charged for the return to be filed.
Interest on Late Payment of GST:
According to the GST Penalty rules, taxpayers who refuse to pay their taxes on time will be paid interest at the rate of 18% per annum. Interest will be charged for the days after the due date.
Penalty on Missing the GST Due Date:
When taxpayers fail to file returns within the prescribed due dates, he is obligated to pay a 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), subject to a limit of Rs. 5000/-, from the provided amount.
Rules Applicable for GST Payment for Taxpayers
1. Regular Taxpayers: Must file GSTR-1 and GSTR-3B. Filing must include payment of due tax to avoid interest and late fees.
2. Composition Scheme Taxpayers: Taxpayers under the composition scheme file returns annually (GSTR-4) but must make quarterly payments via CMP-08. Late payments attract both interest and penalties.
3. Casual Taxable Persons: Casual taxpayers, such as those temporarily engaged in business, need to register for GST and pay taxes in advance based on their estimated liability. Failing to pay on time incurs penalties similar to regular taxpayers.
Each category of taxpayers has its own rules in regard to return forms and deadlines, but the general advice is the same—meet the due dates to avoid extra charges. In addition, taxpayers must maintain proper documentation to support GST payments and input tax credit claimed.
FAQs
Q1. Do I need to file GST returns if I don’t have any GST payable?
Yes, if you are a GST-registered taxpayer, then you will need to file the applicable GST returns irrespective of whether you have a tax liability or not. Even if you have no transactions for the month, you must file a Nil return. If you have only purchases and no sales, then you must file GSTR-3B.
Q2. What happens if you don’t pay GST late fees?
The GST late fees get auto-populated in the next period’s GST return. There is no option to not pay late fees. The system will not allow you to proceed with filing your GST returns until you pay the late fees.
Q3. What if the GST returns are not filed for six months?
If you have not filed your GST returns:
- For two months: GSTR-1 will be blocked if you don’t file previous two months GSTR-3B
- For two months: e-Way bill facility will be blocked until you file the pending GST returns
Further, you could risk your GST registration getting cancelled. Note that the prescribed period for default could be reduced by the government.
Q4. How to pay the GST late fee online?
Once logged into the GST portal, head to ‘Services > Payments > Create Challan’ to pay any outstanding fees. Enter the late fee amount and select your payment method to complete the transaction.
Q5. What happens if I don’t file GST returns?
If you don’t file the GST returns, then late fees will apply for every day of default that occurs. Further, if there is any tax due, then interest will apply at the rate of 18% per annum on the tax liability.
