February 23, 2023
Shreeja Ray

Penalties for not filing or late filing of GST returns

According to the GST statutes, a late fee is a sum assessed for late filing of GST returns. When a GST-registered firm fails to file GST returns by the prescribed due dates*, a prescribed late fee will be assessed for each day of delay. The taxpayer cannot use the Input Tax Credit (ITC) offered in the computerized credit ledger to pay the late fee; it must be paid in cash. The late fee is also charged when filing zero returns late. For instance, even though there are no sales or purchases and no GST liability to declare in the GSTR-3B, one must still pay a late charge. The amount of the late fee will vary based on how many days have passed since the due date. The GSTR-3B GST return is submitted on January 23, 2021, which is three days after the deadline. The three-day late costs will be calculated, and they must be paid in cash.

The GST portal is now set up to only apply a late fee on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7, and GSTR-9.

GST Non-annual Returns Late fees

A late fee of Rs. 100 under the CGST Act and Rs. 100 under the SGST Act is applicable if the taxpayer fails to submit the GST return by the deadline. Consequently, a 200 INR late fee per day is charged. Unless the returns are filed and the late fees are paid, this fee is added daily. No more than INR 5000 can be collected in total. Even for interstate goods, the daily and maximum limits apply.

Annual GST return late fees

The late fees for yearly GST returns are INR 100 under CGST law per day and INR 100 under SGST law per day, much like for non-annual GST returns. Consequently, a daily maximum of INR 200 is in effect up to the date late fees have been paid. The maximum fine cannot exceed 0.25 percent of the taxpayer's overall revenue for the given fiscal year.

Late filing penalties for NIL returns

A NIL return must be filed within the allotted time period even if there is no GST return amount owed to the tax authority. As a result, a per-day late fee is charged if NIL returns are filed late. INR 50 is charged per day under the CGST Act and INR 50 is charged per day under SGST. Overall, a late fee of INR 100 is assessed for late submission of NIL returns up until the date of fee payment.

Frequently Asked Questions

What happens if I don't file the GSTR?

Every taxpayer with a GST registration number is required to file a GST return. Late fines are assessed daily if your GST return is not filed on time. You cannot file the GSTR for the following month if the GSTR for this month is not submitted. Moreover, daily late fines of INR 200 are charged. If the taxpayer neglects to submit his GS return, late costs up to a maximum of INR 5000 may accrue.

I have nothing to submit for my GST return. May I submit my GSTR?

You can, of course, file a GST return. The return is submitted as NIL. There are two possibilities for filing a GSTR without paying tax. One possibility is that no purchases or sales occur throughout the year, leaving no transactions. you are able to submit a NIL transaction return. Another scenario is where you might have made a purchase of products or services but not a sale. As a result, since you paid GST at the time of purchase, you must file GSTR-3B and apply for an input tax credit.

Are late fees for GSTR payments subject to interest?

According to the GST Penalty Regulations, any taxpayer who misses the deadline for filing taxes is required to pay interest at a rate of 18% annually on the late penalties assessed. The interest on the unpaid tax amount will be calculated as follows if a person is required to file a GST return for INR 2500 and paid it 3 days after the due date:

Interest on late fees equals Rs. 3.7 (2500*18/100*3/365)

The time between the actual due date and the date the return was actually paid is taken into account when calculating the interest.

Is filing GSTR as a NIL transaction required?

Yes, filing a GSTR is required if you have a GST registration number. You must file NIL GSTR if you have no buy or sale transactions. Late costs are charged if the GST return is not filed. It costs 50 INR per day under the CGST Act and 50 INR per day under the SGST Act. As a result, you will be required to pay a fine of INR 100 each day. An additional 18% annual interest charge is imposed on this penalty sum.


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