Late fees, as per GST regulations, refer to the amount paid for the delayed submission of GST returns. In instances where a company who have GST Registration neglects to submit GST returns within the stipulated deadlines, a designated late fee is levied for each day of the delay. It’s important to note that this late fee must be settled in cash, and the taxpayer is not allowed to utilize the Input Tax Credit (ITC) available through the electronic credit ledger to offset the late fee. This late fee is also applicable in cases of delayed filing of Zero returns. For instance, even if there are no sales or transactions, and there is no GST liability to be reported in GSTR-3B, a late fee is still applicable and must be paid. Scroll down to check the late fees for GST Returns Filing.

Taxpayer Due Dates for GST Payments

Ensuring timely compliance with Goods and Services Tax (GST) regulations is paramount for various categories of taxpayers. The due dates for GST payments vary based on the taxpayer type, each assigned a specific timeframe to fulfill their obligations. Here’s a detailed breakdown:

General Citizen: Payment Due Date: 20th of the Next Month
Composition Taxpayers: Payment Due Date: 18th of the Next Month or Quarter
Non-Resident Taxpayers: Payment Due Date: 20th of the Next Month
Input Service Distributors: Payment Due Date: 13th of the Next Month
TDS Deductors: Payment Due Date: 10th of the Next Month
TCS Collectors: Payment Due Date: 10th of the Next Month

It is crucial for taxpayers to adhere to these specified due dates to avoid any penalties or late fees. Timely GST payments not only contribute to efficient tax administration but also facilitate smooth financial operations for both the taxpayers and the government. Therefore, understanding and meeting these deadlines are essential aspects of responsible tax management for diverse entities under the GST framework.

Calculation of Late Fees for GST Returns Filing

Following is the calculation of Late Fees for GST Returns Filing:

GSTR-3B Late Fees:
For NIL returns: Rs. 20 per day (Rs. 10 for CGST and Rs. 10 for SGST).
For all other scenarios: Rs. 50 per day (Rs. 25 for CGST and Rs. 25 for SGST).
Maximum penalty: Rs. 10,000 for each return (Rs. 5,000 for CGST and Rs. 5,000 for SGST).
Late payments for GSTR-3B in a month are charged in the following month. Filing a return for a month is contingent upon the payment of the prior month’s GST late fee.

GSTR-1 Late Fees:
Late fees: Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST).
Note: Currently, the government does not accept late payments for GSTR-1. This calculator does not account for GSTR-1.

Late Fees for GSTR-9 and GSTR-9A:
Late fees: Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST).
Up to a limit of 0.50% (0.25% for CGST and 0.25% for SGST) of turnover.

Late Fees for GSTR-10:
Late fees: Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST).
No upper limit to the penalty size. Late payments must be settled for the return to be filed.

Interest on Late Payment of GST:
Interest rate: 18% per annum.
Interest is charged for the days after the due date as per GST Penalty rules.

Adherence to these fee structures and timelines is essential to avoid penalties and ensure a smooth and compliant GST filing process. Late payments not only incur financial consequences but may also hinder the timely submission of returns.

Penalty for Failure to Meet GST Due Date and avoid late fees for GST Returns Filing

In instances where taxpayers neglect to submit returns within the stipulated due dates, they are required to remit a late fee of Rs. 50 per day. This late fee is further categorized as Rs. 25 per day for both CGST and SGST in cases involving tax liabilities, and Rs. 20 per day, with Rs. 10 for both CGST and SGST, in scenarios with zero tax liability. The total late fee is subject to a maximum cap of Rs. 5,000, determined from the specified amount.

Rules Governing GST Payments for Taxpayers

When making payments for tax, interest, penalty, and fees through methods such as internet banking, credit card, NEFT, or RTGS, the electronic cash ledger will be credited. The remaining balance in the electronic cash ledger can be utilized to settle any outstanding interest, fees, or liabilities.
For payments made using the GST PMT-06 form through a challan, the validity of the challan is limited to 15 days. Upon successful payment, a Challan Identification Number (CIN) is issued. If the CIN is not generated, the taxpayer has the option to file Form GST PMT-07.
Online fees processed after 8 p.m. will be transferred to the taxpayer’s account on the following day. While physical challans are not endorsed for GST payments, all challans for taxes, fines, penalties, and interest will be generated exclusively from gst.gov.in.
Payments of challans below 10,000 rupees can be made over the counter using currency, cheques, or demand drafts through approved banks. However, payments exceeding 10,000 rupees must be received digitally, and physical transactions are not permitted for such amounts.

Tips for Avoiding Late Fees

Calendar Reminders: Set up automated reminders well in advance of the filing deadlines to avoid oversight.
Use Technology: Leverage GST filing software to streamline the process and reduce the chances of errors.
Stay Informed: Keep abreast of updates and changes in GST regulations to ensure accurate and timely compliance.

Conclusion

Navigating the terrain of late fees for GST returns filing requires a proactive and informed approach. By understanding the rationale behind late fees, the specific structures for different returns, and implementing best practices to avoid delays, businesses can not only stay compliant but also contribute to a more efficient and transparent taxation ecosystem. In the ever-evolving landscape of GST, staying informed and proactive is the key to success in managing late fees and ensuring a smooth filing process.

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Late Fees for GST Returns Filing

Arya Panda

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