Penalty for Late Filing of GST Return

As per Goods and Services Tax laws, the late fee is a sum charged for late filing of GST return. As stated late fees will be charged per day of hindrance, when a business that is registered under GST registration misses filing GST Returns within the provided due dates. The penalty for late filing of GST return must be paid in cash and one thing to keep in mind is that the taxpayer is not allowed use the Input Tax Credit (ITC) obtainable in electronic credit ledger.

The late fee is also valid for filing late NIL returns. For instance, a taxpayer has to pay late fee even if there are no sales, purchases and GST liability to state in GSTR-3B.

The fee for late filing of GST return will depend on the number of days of the delay from the due date. Currently, the official GST portal charges late fee only on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9.

What is the applicable Amount of Late fees for late filing of GST return?

• As per provisions stated under the GST Acts, for intra-state supplies, the late fee must be paid under both the SGST and CGST Act as follows:

• As per the provisions of IGST Act, for inter-state supply of goods and services, the late fee is equal to the amount of fees prescribed under both SGST and CGST Act. Therefore, Late fee is:

• The filers of Nil return has to pay the below mentioned late fee:

For example, a Taxpayer has filed GSTR-3B for the month of December 2018 on 23rd January 2019, where actual due date was 20th Jan 2019.

Sum of late fees to be paid would be INR 150 (INR 50 per day for 3 days). The late fee will be INR 75 under CGST and INR 75 under SGST.

If the above stated return was a return with nil or no tax liability then late fees will be INR 60 (INR 20 per day 3 days). The late fee will be INR 30 under CGST and INR 30 under SGST.

* The late fees used to be INR 100 per day under CGST Act and SGST Act and INR 200 per day under IGST Act. Also, the late fee for nil return filers used to be INR 25 per day under each CGST Act and SGST Act and INR 50 per day under IGST Act. Nevertheless, CBIC has notified reduced the late fees to offer some relief for businesses having hitches in GST return filing.

For Goods and Services Tax annual returns (GSTR-9)

How to deposit late fees for late filing of GST return with Government?

Sum of Late fee applicable will be automatically calculated by the Goods and Services Tax official portal while submitting the GST returns.

The Late fee has to be paid in cash separately for SGST, IGST and CGST in different electronic cash ledgers. GST return will not be filed without completing the payment of the late fee.

Conclusion

The penalty for late filing of GST return must be paid in cash and one thing to keep in mind is that the taxpayer is not allowed use the Input Tax Credit (ITC) obtainable in electronic credit ledger. The late fee is also valid for filing late NIL returns. The Late fee should be paid in cash separately for SGST, IGST and CGST.