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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



How to calculate Late Fees and Interest on GST Returns?

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.


IMPORTANT NOTE

  Due to COVID19 (Corona Virus), Govt has relaxed many due dates and interest, penalty during the impacted period (between 01st Jun 2021 to 31st Aug 2021 *). Check more @ GST due dates extensions during COVID19 (Corona Virus) lockdown


This document covers

  1. Late Fees under GST
    1. Late Fees until May 2021
    2. Late Fees from June 2021
    3. Late Fee from filing GSTR 9 from FY 2022-23
    4. GST Amnesty Scheme 2023
  2. Interest under GSTR

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

ParticularsLate 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
 Example

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).

  1. If Ram has Sales in Jan, then the penalty will be 10 days * Rs 50 = Rs 500
  2. If Ram donโ€™t have any Sales in Jan, then the penalty will be 10 days* Rs 20= Rs 200

1.2. Late Fees from June 2021


TurnoverType of ReturnLate Fees
1. Nil returnsGSTR 3B/GSTR 1Rs 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 1Rs 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 1Rs 50 per day upto Maximum Late Fees is Rs 5000 per return
4. Turnover above Rs 5 CroresGSTR 3B/GSTR 1Rs 50 per day upto Maximum Late Fee is Rs 10,000 per return
5. Nil returnsGSTR 4Maximum Late Fee is Rs 500 per return
6. For Other than Nil ReturnsGSTR 4Maximum Late Fees is Rs 2000 per return
 Example

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).

  1. If Krishna donโ€™t have any Sales in Aug 2021 then the original penalty will be Rs 3240 and rationalized penalty is Rs 500
  2. 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
Get help using automatedGST Late Fee & Interest Calculator

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.NoTurnoverLate Fees
1Upto Rs 5 CroresRs 50 per day (CGST+SGST) and the maximum penalty is 0.04% of turnover
2Rs 5 crore โ€“ Rs 20 croreRs 100 per day (CGST+SGST) and the maximum penalty is 0.04% of turnover
3Above Rs 20 croreRs 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.

  1. 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
  2. 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.
  3. 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
  4. 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

ParticularsInterest
1. Delayed Payment of GST18% per annum
2. Undue or Excess reduction of Tax Liability 24% per annum
3. Undue or Excess claim of ITC24% per annum
Note 1 : Interest is calculated on the Gross GST Liability

Note 2 : The Interest has to be calculated from the next day on which the tax was due.
 Example

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 โ€“ 20/02/2021)

Interest rate = 18%

Output GST โ€“ 18000

Interest โ€“ 18000 * 18 / 100 * 10 / 365 = Rs 88.76


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Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.