{"id":12320,"date":"2024-08-25T15:40:34","date_gmt":"2024-08-25T10:10:34","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=12320"},"modified":"2024-08-25T15:40:34","modified_gmt":"2024-08-25T10:10:34","slug":"late-fee-for-gstr-3b","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/late-fee-for-gstr-3b\/","title":{"rendered":"Late Fees and Interest for GST Returns"},"content":{"rendered":"\n
When a registered business fails to file Goods and Services Tax (GST) returns or pay tax liabilities on time, penalties in the form of late fees and interest are imposed by the tax department. According to GST regulations, late fees are incurred for delayed filing of returns, calculated daily until the return is filed.<\/p>\n\n\n\n
Additionally, late payment of GST liabilities incurs interest, calculated on the net tax liability after deducting input tax credits, at an annual rate of 18%. Taxpayers are obligated<\/a> to settle these charges promptly to comply with GST requirements and avoid further penalties.<\/p>\n\n\n\n This blog covers all you need to understand about these penalties for late filing of GST returns, focusing on the late fee for GSTR-3B<\/strong> and such other forms.<\/p>\n\n\n\n As per GST laws, late fees are penalties imposed for delays in filing returns. These fees accrue daily from the prescribed due dates set by the tax authorities. Even if there are no sales, purchases or GST liabilities to declare in the return, late fees are imposed<\/a> for the delay in submission.<\/p>\n\n\n\n \ud83d\udca1 If you want to pay your GST with Credit Card, then download\u00a0Pice Business Payment App<\/a>. Pice is the one stop app for all paying all your business expenses.<\/p>\n\n\n\n This fee is determined based on the number of days of delay from the due date. For instance, if GSTR-3B is filed on 23rd June 2024, which is 3 days after the prescribed due date of 20th June 2024, the late fees will be calculated for these three days and must be paid in cash. As of now, the GST portal<\/a> applies late fees exclusively to the following returns:<\/p>\n\n\n\n Take a look at the following table to find out the late fees for delays in filing Form GSTR-3B:<\/p>\n\n\n\n Below are the late fees applicable for delays in filing Form GSTR-4:<\/p>\n\n\n\n Here are the late fees applicable for delays in filing Form GSTR-5:<\/p>\n\n\n\n If Form GSTR-5A is filed late, the following late fees apply:<\/p>\n\n\n\n If you miss the prescribed deadline for filing Form GSTR-6, a fine of \u20b950 per day is imposed. For filing a NIL return, the fine remains \u20b950 per day with no reduction allowance.<\/p>\n\n\n\n If the GST return is filed late, a penalty of \u20b9100 per day under CGST and \u20b9100 per day under SGST, totalling \u20b9200 per day, will be charged, up to a maximum of \u20b95,000. No late fee is applied to IGST for delayed submission.<\/p>\n\n\n\n Given below is the late fee structure associated with Form GSTR-7 filing:<\/p>\n\n\n\n Here is the fee structure applicable to late filing of Form GSTR-9:<\/p>\n\n\n\n When individuals or businesses violate GST regulations by failing to file returns or missing filing deadlines, penalties are imposed as per the GST Act. Late GST payments can result in penalties up to \u20b910,000, along with annual interest calculated from the due date to the actual filing date. Non-compliance could also lead to additional penalties such as ITC restrictions, increased tax liabilities and potential legal proceedings.<\/p>\n\n\n\n Interest charges on delayed GST payments in India are imposed to ensure timely tax compliance. Under Section 50(1) of the CGST Act, 2017, taxpayers failing to pay on time face an 18% per annum interest rate. This accrues daily from the due date until the payment.<\/p>\n\n\n\n During the 43rd GST Council meeting in June 2021, a few adjustments were announced regarding late fees and penalties for GST.<\/p>\n\n\n\n GST Return 3-B late fees are charges imposed for filing of return after the due date, varying for normal and nil returns. Take a look at the following table to find out the applicable fee for each taxpayer.<\/p>\n\n\n\n Suppose that the due date for filing GSTR-3B is 20th July and a business files the return on 25th July, the late fee for normal taxpayers would be 5 days * \u20b950 = \u20b9250, whereas, for a nil return filed on the same dates, the late fee would be 5 days * \u20b920 = \u20b9100.<\/p>\n\n\n\n The table below outlines the late fees applicable for filing Form GSTR-1 (excluding nil returns):<\/p>\n\n\n\n The following table details the late fees applicable for filing nil GSTR-1 returns:<\/p>\n\n\n\n The GST portal automatically calculates the late fee when submitting returns. The amount payable as fees for the current return period must be settled at the time of filing the subsequent month or quarter returns<\/a>. This fee is paid separately in cash for CGST and SGST through separate electronic cash\/credit ledgers.<\/p>\n\n\n\n To file GST returns, settling the late fee is mandatory, covering any outstanding fees from the previous return period due to delays. On the other hand, late or non-payment of GST also results in additional interest charges.<\/p>\n\n\n\nUnderstanding Late Fees in GST<\/strong><\/h2>\n\n\n\n
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Name of the Act<\/strong><\/td> Late fees for every day of delay<\/strong><\/td><\/tr> For Regular Taxpayers: <\/strong><\/td><\/tr> Central Goods and Services Act, 2017<\/td> \u20b925<\/td><\/tr> Respective State Goods and Services Act, 2017 (or) Union Territory Goods and Services Act, 2017<\/td> \u20b925<\/td><\/tr> Total late fees to be paid per day<\/td> \u20b950<\/td><\/tr> For Taxpayers with Nil Liability:<\/strong><\/td><\/tr> Central Goods and Services Act, 2017<\/td> \u20b910<\/td><\/tr> Respective State Goods and Services Act, 2017 (or) Union Territory Goods and Services Act, 2017<\/td> \u20b910<\/td><\/tr> Total late fees to be paid per day<\/td> \u20b920<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n \n
Name of the return<\/strong><\/td> Type of return<\/strong><\/td> Annual turnover in previous year<\/strong><\/td> Maximum late fee under CGST<\/strong><\/td> Maximum late fee under SGST<\/strong><\/td> Maximum late fee<\/strong><\/td><\/tr> GSTR-4 (FY 21-22 onwards)<\/td> Nil return<\/td> NA<\/td> \u20b9250<\/td> \u20b9250<\/td> \u20b9500<\/td><\/tr> Other than Nil return<\/td> NA<\/td> \u20b91,000<\/td> \u20b91,000<\/td> \u20b92,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n \n
Return Type<\/strong><\/td> Late Fees<\/strong><\/td><\/tr> Nil Returns<\/td> \u20b920 per day<\/td><\/tr> Normal Returns<\/td> \u20b950 per day<\/td><\/tr> The maximum late fee is \u20b95,000.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n \n
Return Type <\/strong><\/td> Late Fees Applicable<\/strong><\/td><\/tr> Return for Normal Filing<\/td> \u20b9200 per day<\/td><\/tr> Return for NIL Filing<\/td> \u20b9100 per day<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n \n
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Name of the return<\/strong><\/td> Type of return<\/strong><\/td> Annual turnover in previous year<\/strong><\/td> Maximum late fee under CGST<\/strong><\/td> Maximum late fee under SGST<\/strong><\/td> Maximum late fee<\/strong><\/td><\/tr> GSTR-7 (TDS filing under GST)<\/td> NA<\/td> NA<\/td> \u20b91,000<\/td> \u20b91,000<\/td> \u20b92,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n \n
Name of the Act<\/strong><\/td> For taxpayers whose turnover is up to \u20b95 crore<\/strong> (Late fees for every day of delay)<\/strong><\/td> For taxpayers whose turnover is more than \u20b95 crores & up to \u20b920 crore<\/strong> (Late fees for every day of delay)<\/strong><\/td> For taxpayers whose turnover is more than \u20b920 crore<\/strong> (Late fees for every day of delay)<\/strong><\/td><\/tr> Central Goods and Services Act, 2017<\/td> \u20b925<\/td> \u20b950<\/td> \u20b9100<\/td><\/tr> Respective State Goods and Services Act, 2017 (or) Union Territory Goods and Services Act, 2017<\/td> \u20b925<\/td> \u20b950<\/td> \u20b9100<\/td><\/tr> Total Late fees to be paid<\/td> \u20b950*<\/td> \u20b9100<\/td> \u20b9200<\/td><\/tr> Maximum late fees that can be charged<\/td> 0.04% of turnover in state or union territory<\/td> 0.04% of turnover in state or union territory<\/td> 0.25% of the turnover for the financial year<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Penalties for Late Return Filing<\/strong><\/h2>\n\n\n\n

Interest Charges on Delayed GST Payments<\/strong><\/h2>\n\n\n\n
Latest Notification on GST Late Fees<\/strong><\/h2>\n\n\n\n
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GSTR 3B Late Fees<\/strong><\/h3>\n\n\n\n
Return Type<\/strong><\/td> Late Fee (Applicable on a Per Day Basis)<\/strong><\/td><\/tr> Normal Returns<\/td> \u20b950<\/td><\/tr> Nil Returns<\/td> \u20b920<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n GSTR 1 Late Fees<\/strong><\/h3>\n\n\n\n
Name of the Act<\/strong><\/td> Late fees for every day of delay<\/strong><\/td> Maximum late fee (If the annual turnover in the previous financial year is up to \u20b91.5 crore)<\/strong><\/td> Maximum late fee (If the annual turnover ranges between \u20b91.5 crore and \u20b95 crore)<\/strong><\/td> Maximum late fee (If the turnover is more than \u20b95 crore)<\/strong><\/td><\/tr> CGST Act, 2017<\/td> \u20b925<\/td> \u20b91,000<\/td> \u20b92,500<\/td> \u20b95,000<\/td><\/tr> Respective SCGT Act, 2017\/UTGST Act, 2017<\/td> \u20b925<\/td> \u20b91,000<\/td> \u20b92,500<\/td> \u20b95,000<\/td><\/tr> Total late fees to be paid<\/td> \u20b950<\/td> \u20b92,000<\/td> \u20b95,000<\/td> \u20b910,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Name of the Act<\/strong><\/td> Late fees for every day of delay<\/strong><\/td> Maximum late fee<\/strong><\/td><\/tr> CGST Act, 2017<\/td> \u20b910<\/td> \u20b9250<\/td><\/tr> Respective SCGT Act, 2017\/UTGST Act, 2017<\/td> \u20b910<\/td> \u20b9250<\/td><\/tr> Total late fees to be paid<\/td> \u20b920<\/td> \u20b9500<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Paying Late Fees on the GST Portal<\/strong><\/h2>\n\n\n\n