GST Late Fees & Interest on Late Payment of GST

GST Late Fees: Interest on late payment of GST

Updated on 19 Mar, 2024

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Knowing about GST late fees is as crucial as learning about GST registration, types and compliance rules. Just like any tax, the Goods and Services Tax (GST) returns also have to be filed on or before a prescribed date. However, if any entity fails to file its GST returns by the specified date for any reason, a penalty will apply in the form of a GST late fee. The GST late fee would apply for each day of delay from the specified due date.

Let us understand the nitty-gritty of GST penalties for late filing.

What are GST late fees?

GST late fees are the prescribed penalty for each day delayed from the GST return filing due date. The GST late fee cannot be adjusted with the entity’s Input Tax Credit (ITC) and needs to be paid in cash.

The applicable fee amount would depend on the number of days your filing has been delayed from the due date.

What are late fees for different GST types?

The GST late fee per day is different for different GST types. Let us look at them individually.

GSTR 3B late fees

The amount for late fees is different for nil fees and for all the other scenarios.

For nil payment, it is ₹10 for CGST and ₹10 for SGST (total ₹20) per day.
For all the other scenarios, it is ₹25 for CGST and ₹25 for SGST (total ₹50) per day.

However, the maximum penalty for non filing of GST is capped at ₹5000 for CGST and ₹5000 for SGST (total ₹10,000) for each return under consideration. These GST late fees for delay in GST 3B filing would be collected immediately the following month and must be cleared for filing next month’s GST.

The actual amount charged as a GST late fee and maximum penalty cap would depend on the taxpayer’s annual turnover.

GSTR 1 late fees

For nil returns, the GSTR-1 late fee is ₹20 per day.
For other scenarios, it is ₹50 per day.

GSTR 9 and GSTR 9A late fees

The GST penalty per day depends on the taxpayer’s annual turnover. It is ₹100 for CGST and ₹100 for SGST (total ₹200) per day. This penalty is capped at 0.5 per cent of the annual turnover (0.25 per cent CGST and 0.25 per cent SGST) per return.

GSTR 10 late fees

For GSTR 10, the late payment fee is to be charged along with the GSTR return to be filed. Also, there is no capping on the penalty size for GSTR 10. It is ₹100 for CGST and ₹100 for SGST (total ₹200) per day of delay.

What is the interest on late payment of GST?

If the taxpayer fails to pay GST within the due date for filing returns, the following interest rates would apply:

GST payment after the due date at 18 per cent per annum
For excess reduction in output GST or excess ITC claimed, the interest would be 24 per cent per annum.

Conclusion

GST late fee payment as per the above-stated terms and conditions can be paid by electronic mode of payment such as NEFT/RTGS, internet banking, credit or debit card by adding to your electronic cash ledger. However, payments under ₹10,000 can be made using a demand draft, over-the-counter currency or cheque. Non-digital transactions for GST late fee payment are only allowed for payments up to ₹10,000.

Frequently Asked Questions

What is the interest on GST late payment?

For GST payment after the due date, interest of 18 per cent per annum is applicable. However, for excess ITC claims or excess reductions in output GST, the interest would be 24 per cent per annum.

What are GST late fees per day?

GST late payment penalty per day differs for different GST types. Apart from the penalty, interest rates are charged for late GST payments.

Is GST late payment interest applicable for nil GST returns filing?

Yes, a GST late fee is also applicable on nil returns filing delays. Even in the absence of any sales or purchases or no GST 3B liability to be declared, a delay in filing returns would attract a penalty.

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