Home > GST > Help Center > Late Fees & Interest on GST Last Updated: Dec 15th 2023
How to calculate Late Fees and Interest on GST Returns?
It's important to file your GST Returns on-time and requires a discipline to avoid getting into Penalties and late filing interests on GST
Every Person registered under GST should file the GST returns within due dates prescribed by Government. If the taxpayers fail to file the returns within due dates, they should pay the late fee along with the interest while filing GST returns. The Taxpayers needs to file the nil returns even if there is no activity.
This document covers
1. Late Fees under GST
Late Fees under GST was rationalized by Government with effect from June 2021. Late Fee until May 2021 was calculated in 1 way and Late Fee from June 2021 will be calculated in other way
1.1. Late Fees until May 2021
When a Registered Taxpayer misses the filing of GST Returns within a due date, the late fees is levied by the government of India. The Late Fee for various GST Returns are as follows
| Particulars | Late Fees |
|---|---|
| 1. GSTR 3B, GSTR 1 and GSTR 4 (If there are Sales) | Rs 50 per day up to a maximum of Rs 10,000 per return |
| 2. GSR 3B, GSTR 1 and GSTR 4 (Nil Return) | Rs 20 per day up to a maximum of Rs 10,000 per return |
| 3. GSTR 9 & GSTR 9A | Rs 200 per day up to a maximum of 0.5% of turnover |
| 4. GSTR 10 (Final Return) | Rs 200 per day |
Mr. Ram has registered under GST in Jan 2021 but he did not file his GSTR 3B on or before 20/02/2021. He filed his return on 01/03/2021. The delay in number of days for filing is 10 days (01/03/2021 - 20/02/2021).
- If Ram has Sales in Jan, then the penalty will be 10 days * Rs 50 = Rs 500
- If Ram don’t have any Sales in Jan, then the penalty will be 10 days* Rs 20= Rs 200
1.2. Late Fees from June 2021
| Turnover | Type of Return | Late Fees |
|---|---|---|
| 1. Nil returns | GSTR 3B/GSTR 1 | Rs 20 per day up to a maximum of Rs 500 per return |
| 2. Turnover upto Rs 1.5 Crores (other than Nil Returns) | GSTR 3B/GSTR 1 | Rs 50 per day upto a Maximum Late Fees is Rs 2000 per return |
| 3. Turnover between Rs 1.5 crore to Rs 5 Crores (other than Nil Returns) | GSTR 3B/GSTR 1 | Rs 50 per day upto Maximum Late Fees is Rs 5000 per return |
| 4. Turnover above Rs 5 Crores | GSTR 3B/GSTR 1 | Rs 50 per day upto Maximum Late Fee is Rs 10,000 per return |
| 5. Nil returns | GSTR 4 | Maximum Late Fee is Rs 500 per return |
| 6. For Other than Nil Returns | GSTR 4 | Maximum Late Fees is Rs 2000 per return |
Mr. Krishna has registered under GST in Aug 2021 but he did not file his GSTR 3B on or before 20th Sep 2021. He filed his return on Mar 01st 2022. The delay in number of days for filing is 162 days (Mar 01st 2022 - 20th Sep 2021).
- If Krishna don’t have any Sales in Aug 2021 then the original penalty will be Rs 3240 and rationalized penalty is Rs 500
- If Krishna has Sales in Aug 2021 and if his turnover is less than 1.5 crore, then the original penalty will be Rs 8100 and rationalized penalty is Rs 2000
1.3. Late Fee for filing GSTR 9 from FY 2022-23
With Respect to 49 th GST Council Meeting, GST council has issued a notification for reduction in Late fee for filing GSTR 9 from FY 2022-23
| S.No | Turnover | Late Fees |
|---|---|---|
| 1 | Upto Rs 5 Crores | Rs 50 per day (CGST+SGST) and the maximum penalty is 0.04% of turnover |
| 2 | Rs 5 crore – Rs 20 crore | Rs 100 per day (CGST+SGST) and the maximum penalty is 0.04% of turnover |
| 3 | Above Rs 20 crore | Rs 200 per day (CGST+SGST) and the maximum penalty is 0.50% of turnover. |
1.4. GST Amnesty Scheme 2023
With Respect to 49 th GST Council Meeting, GST council has issued a notification for the GST amnesty scheme 2023.
- The Late fee for filing Annual Return in GSTR 4 for composition taxpayers for FY 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 is restricted to Rs 500 per year if filed between 01st April 2023 to 30th June 2023
- The Late fee for filing Annual Return in GSTR 9 for Regular taxpayers for FY 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 is restricted to Rs 20,000 per year if filed between 01st April 2023 to 30th June 2023.
- The Late fee for filing Final Return in GSTR 10 for the cancelled GST is restricted to Rs 1000 if filed between 01st April 2023 to 30th June 2023
- Business whose GST numbers were cancelled before 31 st Dec 2022 can apply for revocation of GST by 30 th June 2023 after filing all pending returns.
2. Interest under GSTR
Late filing of GST Returns will attract interest along with Late fee. Every Taxpayer registered under GST who is delaying the filing returns or deferring the taxpayment should pay the GST along with the interest.
Interest under GST is charged in following cases
| Particulars | Interest |
|---|---|
| 1. Delayed Payment of GST | 18% per annum |
| 2. Undue or Excess reduction of Tax Liability | 24% per annum |
| 3. Undue or Excess claim of ITC | 24% per annum |
Note 2 : The Interest has to be calculated from the next day on which the tax was due.
Mr. Krishna has made a sales of Rs 1,00,000 and GST Payable is Rs 18,000 for Jan 2021. Input Tax credit available for Jan is Rs 3000. The Net GST Payable by him is Rs 15000 for Jan month. He was liable to pay Rs 15,000 by Feb 20, 2021. Mr. Krishna has filed his return on 01/03/2021. The interest he needs to pay is as follows
Delay in No of days = 10 (01/03/201 – 20/02/2021)
Interest rate = 18%
Output GST – 18000
Interest – 18000 * 18 / 100 * 10 / 365 = Rs 88.76