GST Late Fees: Insights into Filing Guidelines to Avoid Penalties!

GST late fees for GST returns refer to penalties for not filing or delayed tax filing. When a business fails to file GST returns or pay tax liabilities, it must pay late fees and Interest. Let’s scroll down to see What is the late fee for GST Return. 

Introduction to GST Late Fees

Late fee for GST returns refers to penalties applied for not filing or delayed tax filing. When a business fails to file GST returns or pay tax liabilities, he needs to pay late fees and interest. 

How are GST Late Fees Calculated?

The late fee for GST returns depends on the number of days of delay from the due date. It also varies depending on GST filing types, business, state, Nil or taxable returns, waivers, and extensions.  

Here’s a formula to compute GST late fees: 

Late fee = number of days delayed X late fee per day 

Formula to Calculate Interest on Late Payment of GST

Interest on late payment of GST is calculated based on unpaid GST amount and delayed duration. Here’s a formula for it: 

Interest Formula: 

Interest = (Outstanding GST liability x Interest Rate x Days delayed)/ 365

1. Outstanding GST Liabilities – Unpaid tax amount.
2. Interest Rate – 18% per annum for unpaid GST; 24% for excess ITC claims and output tax liabilities.
3. Days Delayed – Difference between the due date and actual filing date.
4. 365 – Days in a year, used for annualizing the interest.

What is the Difference Between GST Late Fees and Interest Rate? 

GST Late Fees	Interest on Late Payment of GST
GST Late fees refer to the penalties charged for late filing or failing to file returns.	The interest rate on delayed GST payments refers to Interest charged on unpaid taxes, including the late fee amount.
Late fee = number of days delayed x late fee per day	Interest  = (Outstanding GST liability x Interest Rate x Number of days delayed)/ 365
Late fees apply to both CGST and SGST, having separate late fee charges for each.	The Interest Rate is applied to the tax liability amount and applies until the payment is made.

GST Late Filing Penalty for All GST Returns! 

Here’s summarizing GSTR Late Fees for all GST Types! 

GSTR Types	Late fee Per Day for Normal taxpayers	Late Fee Per day for Nil Returns	Maximum Late Fee
GSTR-1	Rs. 50 (25 for CGST and 25 for SGST)	Rs. 20 (10 for CGST and 10 for SGST)	Normal Tax Payers with annual turnovers upto Rs. 1.5Cr = Rs. 2000Rs. 1.5 to 5 Cr = Rs. 5000More than Rs. 5Cr= Rs. 10000 For Nil Returns the maximum late fee is Rs. 500
GSTR-2A	It is auto-populated and thus has no deadlines.	N/A	N/A
GSTR-2B	It is auto-populated and has no late fees.	N/A	N/A
GSTR-3B	Rs. 50 (25 for CGST and 25 for SGST)	Rs. 20 (10 for CGST and 10 for SGST)	For Normal Tax Payers with annual turnovers upto Rs. 1.5Cr = Rs. 2000Rs. 1.5 to 5 Cr = Rs. 5000More than Rs. 5Cr= Rs. 10000 For Nil Returns the maximum late fee is Rs. 500 (250 CGST + 250 SGST)
GSTR-4	Rs.50 (25 CGST and 25 SGST)	Rs.20 (10 for CGST and 10 for SGST)	For Normal Taxpayers it is 2000 (1000 for CGST and 1000 for SGST)  Maximum GST late fees for Nil Returns is Rs. 500 (250 for CGST and 250 for SGST)
GSTR-5	Rs.50 (25 CGST and 25 SGST)	Rs.20 (10 for CGST and 10 for SGST)	Maximum GST Late Fees is Rs. 5000 for non-resident taxpayers.
GSTR-5A	Rs.200(100 CGST and 100 SGST)	Rs.20 (10 for CGST and 10 for SGST)	The maximum GST Return late fee is Rs.10000 for both normal and Nil returns.
GSTR-6	Rs.50 (25 CGST and 25 SGST)	There is no reduction provision for filing Nil returns.	There is no maximum limit, if the late fees are not paid it is carried to the next GST return. Also, failing to pay these taxes can lead to cancellation of GSTR-6 registration.
GSTR-7	Rs. 200 per day (100 for CGST and 100 for SGST)	Per day GST Late fees for Nil returns is Rs. 100 (50 for CGST and 50 for SGST)	Maximum late fee for not filing of GSTR-7 is Rs. 5000
GSTR-8	Rs. 200 per day (100 for CGST and 100 for SGST)	GST Late filing penalty for Nil returns has been waived recently.	Maximum late fee for not filing of GSTR-8 is Rs. 5000
GSTR-9	GST late filing penalty for GSTR-9 is based on turnover. Here’s how it is: Upto 5Cr= Rs50 per day5Cr to 20Cr= Rs.100 per dayMore than 20Cr= Rs.200 per day	To reduce the tax burden on inactive or small businesses the government has waived off the late fees.	For turnovers: Upto 5Cr= 0.04% of turnover5Cr to 20Cr= 0.04% of turnover More than 20Cr= 0.50% of turnover
GSTR-9A	Rs. 200 per day (100 for CGST and 100 for SGST)	There is no GST late fee to be paid	0.25% of the turnover based on relevant state or union territory
GSTR-9C	Rs. 200 per day (100 for CGST and 100 for SGST)	There is no GST late fee to be paid	0.50% of turnover based on relevant state and union territory.
GSTR-10	Rs. 200 per day (100 for CGST and 100 for SGST)	GST penalty for GSTR-10 is waived off for Nil returns	0.25% of the turnover based on relevant state or union territory
GSTR-11	Rs. 100 per day (50 for CGST and 50 for SGST)	Rs. 100 per day (50 for CGST and 50 for SGST)	0.25% of the turnover of taxpayers for the financial year.

Wrap Up! 

Did you find the blog helpful? If so, then stay tuned for more informative articles from us! 

Don’t want to miss GST filing deadlines? Do you wish to avoid paying GST return late fees? Try Munim GST Return Filing Software now! Hurry up! Start your free trial today! 

FAQs 

1. What does the maximum GST late fee mean?  

Maximum GST return late fee refers to the highest amount of penalty a taxpayer can incur for delayed filing of returns. It varies depending on the nature of returns and turnover. 

2. What is the GST penalty for late registration?

GST penalty for late registration is 10% of the total tax liability with a minimum amount of Rs. 10000. 

3. How can I calculate my GST late filing penalty? 

GST Late fee calculator can help you compute your late fee and interest rate in seconds. Munim’s late fee calculator can be a good choice for you. 

4. How can I avoid late fees under GST? 

To avoid late fees under GST, you can use GST return filing software to keep yourself updated with the GSTR filing deadlines. This will ensure you fill returns before the due date to avoid last-minute hassles and GST penalties.