In this article you will learn:
Every registered person under GST is required to file monthly or quarterly return and annual return within the due date depending upon the type of the taxpayer status.
However, if such a taxpayer fails to pay tax or file returns within the prescribed due date, he shall have to pay late fee along with interest on the late payment of GST.
This article talks about the amount of GST Late Fees that a registered taxpayer would have to pay in case there is a delay in filing GST Return. It also gives an account of the notifications issued by the GST Council announcing changes with regards to changes or complete waiver of the late fees on GST Returns.
GST Late Fees
As per the GST Law, any registered person is liable to pay late fees in case he makes a delay or fails to furnish outward or inward details in monthly, quarterly or annual returns within the prescribed due date.
Such a fee is charged for each day during which such a failure continues on the part of the registered taxpayer after the due date to file returns.
Furthermore, a registered taxpayer needs to file NIL returns mandatorily in case there are no transactions for a particular month or a quarter. However, if he makes a delay or fails to furnish details of inward or outward supplies in the NIL Return within the due date, then also, he is also liable to pay late fee.
This means that late fee is also applicable on NIL Returns.
For instance, say Kapoor Pvt Ltd has no transactions of sales or purchases for the month of January 2020. Still, Kapoor Pvt Ltd would have to file NIL return in Form GSTR-3B for the month of January 2020 by February 20, 2020.
Furthermore, the amount of fee charged would be based on the number of days for which the delay is made beyond the due date.
Say Kapoor Pvt Ltd files the return for the Month of January 2020 by February 28, 2020. Since the due date to file GSTR-3B for the month of January is February 20, 2020, Kapoor Pvt Ltd makes a delay of 8 days. Thus, fees for those 8 days would be calculated and deposited in cash.
Read our article GST Calendar 2019 -2020: Important Dates for Return Filing Under GST to know about the latest updates on the due dates to file various GST Returns.
Amount of GST Late Fees
Following are the rules pertaining to late fees to be paid by a registered taxpayer in case he makes a delay in filing tax returns. And for the purpose of this article, we will refer to the Haryana Goods and Services Tax Act, 2017 to know GST Late Fees rules pertaining to SGST.
Fees On Late Filing of Monthly or Quarterly Returns
I. For Intra-State Supplies
As per section 47(1) of the CGST Act, any registered person who fails to furnish the requisite returns by the prescribed due date shall pay a late fee of Rs 100 for every day during which such failure continues.
Such a fee is subject to a maximum amount of Rs 5,000. Likewise, pertaining to section 47(1) of the Haryana GST Act, 2017, any registered person who fails to furnish the requisite returns by the prescribed due date shall pay a late fee of Rs 100 for every day during which such failure continues. Such a fee is subject to a maximum amount of Rs 5,000.
| Section Under the Act | Amount of Late Fees For Each Day of Delay |
| Section 47(1) of CGST Act, 2017 | Rs 100 |
| Section 47(1) of Haryana GST Act, 2017 | Rs 100 |
| Total Late Fees To Be Paid By The Taxpayer | Rs 200 |
However, CBIC had reduced the amount of late fees charged for a delay in filing GST returns. This reduced amount of late fees was introduced as a relief measure for a temporary period as individuals or businesses faced challenges using the GST Portal.
| Section Under the Act | Reduced Late Fees For Each Day of Delay |
| Section 47(1) of CGST Act, 2017 | Rs 25 |
| Section 47(1) of Haryana GST Act, 2017 | Rs 25 |
| Total Reduced Late Fees To Be Paid By The Taxpayer | Rs 50 |
II. For Inter-State Supplies
As per section 20 of the IGST Act, 2017, the penalty charged for late filing of GST Returns under the IGST Act shall be the sum total of the penalty charged under CGST Act and SGST or UTGST Act. Accordingly, any registered person who fails to furnish the requisite returns by the prescribed due date shall pay a late fee of Rs 200 for every day during which such failure continues. Furthermore, such a fee is subject to a maximum amount of Rs 5,000.
| Section Under the Act | Amount of Late Fees For Each Day of Delay |
| Section 20 of IGST Act, 2017 | Rs 200 |
| Total Late Fees To Be Paid By The Taxpayer | Rs 200 |
As mentioned above, the government had reduced the late fees amount for a temporary period in order to give relief to the taxpayers facing challenges using GST Portal. Following table shows the reduced late fees amount for late filing of returns in case of inter-state supplies.
| Section Under the Act | Reduced Late Fees For Each Day of Delay |
| Section 20 of IGST Act, 2017 | Rs 100 |
| Total Reduced Late Fees To Be Paid By The Taxpayer | Rs 100 |
III. For NIL Returns
As per section 39(8) of the CGST Act, 2017, “every registered person who is required to furnish a return shall furnish a return for every tax period whether or not any supplies of goods or services have been made during such tax period.”
Therefore, if the registered taxpayer fails to file NIL Return on or before the due date, he shall be liable to pay late fees of Rs 50 for every day during which such failure continues under CGST Act. Similar provisions exist exist under the SGST Act, 2017.
Thus, a late fee of Rs.100/- per day (Rs. 50 under CGST law + Rs. 50/- under State / Union Territory GST law) would be levied as per CGST Act, 2017 and State / Union Territory GST Act, 2017.
| Section Under the Act | Amount of Late Fees For Each Day of Delay |
| CGST Act, 2017 | Rs 50 |
| SGST Act, 2017 | Rs 50 |
| Total Late Fees To Be Paid By The Taxpayer | Rs 100 |
Furthermore, in case of NIL returns as well, the government reduced the amount of late fees to be charged in case the taxpayer makes a delay in filing NIL returns.
Following table showcases the reduced amount of late fees to be charged for a temporary period to provide relief to the taxpayers facing challenges when using the GST portal.
| Section Under the Act | Amount of Late Fees For Each Day of Delay |
| CGST Act, 2017 | Rs 10 |
| SGST Act, 2017 | Rs 10 |
| Total Late Fees To Be Paid By The Taxpayer | Rs 20 |
Fees On Late Filing of Annual Returns
As per section 47(2) of the CGST Act, a late fee of Rs. 100/- per day for delay in furnishing annual return in Form GSTR 9 would be levied in case a taxpayer makes a delay in filing annual return.
This fee is subject to a maximum amount of quarter percent (0.25%) of the turnover in the State or Union Territory in which such a return is filed.
Similar provisions for levy of late fee exist under the State / Union Territory GST Act, 2017. Thus, a late fee of Rs.200/- per day (Rs. 100 under CGST law + Rs. 100/- under State / Union Territory GST law) would be levied as per section 47(2) and section 44 (1) of the CGST Act, 2017 and State / Union Territory GST Act, 2017.
This fee is capped to a maximum amount of half percent (0.25% under the CGST Law + 0.25% under the SGST / UTGST Law) of turnover in the State or Union Territory.
| Section Under the Act | Amount of Late Fees For Each Day of Delay |
| Section 47(2) and 44(1) of CGST Act, 2017 | Rs 100 |
| Section 47(1) of Haryana GST Act, 2017 | Rs 100 |
| Total Late Fees To Be Paid By The Taxpayer | Rs 200 |
Fees On Late Furnishing of TDS Certificate
As per section 51(4) of the CGST Act, 2017, if any deductor fails to furnish TDS Certificate to the deductee after deducting TDS within five days of crediting the amount so deducted to the Government, the deductor shall be liable to pay a late fee.
This late fee amounts to Rs 100 per day from the day after the expiry of such five days period until the failure is rectified. Further, such a fee is subject to a maximum amount of Rs 5,000. Similar provisions exist under the SGST Act, 2017.
Thus, a late fee of Rs.200/- per day (Rs. 100 under CGST law + Rs. 100/- under State / Union Territory GST law) would be levied as per section 51(4) of the CGST Act, 2017 and the respective section under State / Union Territory GST Act, 2017.
Changes in GST Late Fees
| GST Return | Period of Return Filing | Late Fee Applicable | Notification No. |
| Form GSTR-1 | August, 2017 & September, 2017 | Reduced Late Fee | 4/2018 – Central Tax |
| Form GSTR-1 | July, 2017 to September, 2018 | Waived off Completely for those who furnish the details in Form GSTR-1 between the period from 22nd December, 2018 to 31st March, 2019 | 75/2018 – Central Tax |
| Form GSTR-1 | July, 2019 | Waived off Completely for registered persons having principal place of business in the states of Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Uttarakhand and the prescribed districts,have an aggregate turnover of more than Rs 1.5 Crores and have furnished the said return on or before September 20, 2019. | 41/2019 – Central Tax |
| Form GSTR-1 | July, 2019 | Waived off Completely for registered persons having principal place of business in the state of Jammu and Kashmir, have an aggregate turnover of more than Rs 1.5 crore and have furnished the said return on or before the September 20, 2019. | 41/2019 – Central Tax |
| Form GSTR-1 | July, 2017 to November, 2019 | Waived off Completely for the registered persons who failed to furnish the said return between December 19, 2019 to January 10, 2020. | 74/2019 – Central Tax |
| Form GSTR-3B | July, 2017 | Waived off Completely | 28/2017 – Central Tax |
| Form GSTR-3B | October, 2017 onwards | Reduced Late Fee | 64/2017 – Central Tax |
| Form GSTR-3B | October, 2017 to April, 2018 | Waived off Completely for the class of registered persons whose declaration in Form GST TRAN-1 was submitted but not filed on the common portal on or before the 27th day of December, 2017. Provided that such registered persons have filed the declaration in Form GST TRAN-1 on or before the 10th day of May, 2018 and the return in Form GSTR-3B for each of such months, on or before the 31st day of May, 2018. | 22 /2018 – Central Tax |
| Form GSTR-3B | October, 2017 | Waived off Completely for the registered persons whose return in Form GSTR-3B of the CGST Rules, 2017 was submitted but not filed on the common portal, after generation of the application reference number. | 41/2018 – Central Tax |
| Form GSTR-3B | July, 2017 Onwards | Waived off Completely | 76/2018 – Central Tax |
| Form GSTR-3B | July, 2017 to September, 2018 | Waived off Completely for those who fail to furnish the said return between December 22, 2018 to March 31, 2019. | 76/2018 – Central Tax |
| Form GSTR-4 | July 2017 Onwards | Reduced Late Fee | 73/2017 – Central Tax |
| Form GSTR-4 | October, 2017 to December, 2017 | Waived off Completely for the registered persons who have filed the return in FORM GSTR-4 of the CGST Rules, 2017 by the due date but late fee was erroneously levied on the common portal. | 41/2018 – Central Tax |
| Form GSTR-4 | July, 2017 to September, 2018 | Waived off Completely for those registered persons who fail to furnish the said return by the due date but furnish the said return between December 22, 2018 and March 31, 2019. | 77/2018 – Central Tax |
| Form GSTR-5 | July 2017 Onwards | Reduced Late Fee | 5/2018 – Central Tax |
| Form GSTR-5A | July 2017 Onwards | Reduced Late Fee | 6/2018 – Central Tax |
| Form GSTR-6 | July 2017 Onwards | Reduced Late Fee | 7/2018 – Central Tax |
| Form GSTR-6 | Prior to January 2018 | Waived off Completely for Input Service Distributors who have paid the late fee for filing or submission of return between January 1, 2018 and January 23, 2018 | 41/2018 – Central Tax |
| Form GSTR-6 | July, 2019 | Waived off Completely for the Input Service Distributors having a principal place of business in the districts mentioned in the notification and who have furnished return in the said return on or before September 20, 2019. | 41/2019 – Central Tax |
| Form GSTR-6 | July, 2019 | Waived off Completely for the Input Service Distributors having a principal place of business in the state of Jammu and Kashmir and who have furnished the said return on or before September 20, 2019. | 41/2019 – Central Tax |
Interest Under GST
Following are the scenarios under which a taxpayer is liable to pay interest under GST:
- As per section 50(1) of the CGST Act, 2017, any person who is liable to pay tax but fails to pay the same within the prescribed due date shall be liable to pay interest at the rate of 18%. Such rate of tax is levied for the period for which the tax remains unpaid. Furthermore, the interest is calculated from the day succeeding the day on which such tax was due to be paid.
- As per section 50(3) of the CGST Act, 2017, a taxpayer who makes an excess claim of ITC or excess reduction in output tax liability is liable to pay interest at the rate of 24%. This rate of interest is paid on the excess claim of ITC or excess reduction in output tax liability as the case may be.
| Section Under the Act | Rate of Interest | Offence |
| Section 50(1) of CGST Act, 2017 | 18% | Taxpayer fails to pay the tax within the prescribed due date |
| Section 50(3) of CGST Act, 2017 | 24% | Taxpayer makes an excess claim of ITC or excess reduction in output tax liability |
How To Pay GST Late Fees?
1. Access GST Portal
Access the GST Portal at gst.gov.in. Login to the portal using your username and password details.
2. Open Returns Dashboard
Once you login to the GST Portal, click ‘Services’. Under ‘Services’, select ‘Returns’ and then ‘Returns Dashboard’ as shown in the image below.
3. Select the Requisite Return Period
Once you click the ‘Returns Dashboard’ option, the ‘File Returns’ Page gets displayed. On the ‘File Returns’ Page, select the Financial Year and Return Filing Period (Month) for which you want to file the return from the drop-down list of the requisite fields. After filling the details in the fields, hit the ‘Search’ button.
4. Select Prepare Online Under GSTR-3B
Once you hit the ‘Search’ button in the previous step, the ‘File Returns’ Page gets displayed. This page displays various return forms in different tiles. You need to click the ‘Prepare Online’ button in the tile titled ‘Monthly Return GSTR3B’ as shown in the image below.
5. Select OK
After you click the ‘Prepare Online’ button as showcased in the previous step, the portal displays the guidelines to fill Form GSTR-3B. You just need to read them and click ‘OK’ button at the bottom.
6. Answer Questions
Once you click ‘OK’ as shown in the previous step, a list of questions get displayed. You need to answer these questions. Based on the questions that you answer, the portal will show the relevant sections applicable to you.
Once you answer all the relevant questions, click the ‘Next’ Button as shown in the image below. On clicking the ‘Next’ button, all the relevant tables of Form GSTR-3B will be visible to you.
7. Click Interest and Fee Tile
On clicking the ‘Next’ button in the previous step, ‘Form GSTR-3B Monthly Return’ Page gets displayed. On this page, all the applicable tiles will be visible to you for you to fill the details. You need to select the ‘5.1 Interest and Late Fee’ tile as shown in the image below.
8. Enter Interest and Late Fee Details
After you click the ‘5.1 Interest and Late Fee’ tile, the ‘5.1 Interest and Late Fee’ section opens. In this section you need to select the checkbox for declaration in case you want to declare any interest liabilities. Then, you need to enter the Integrated Tax, Central Tax, State/UT Tax and Cess under Interest and Late Fee fields.
Remember that the late fee would be auto-calculated by the system based on the number of days elapsed after the due date of filing return.
Finally, click the ‘Confirm’ Button as shown in the image below.
9. Save GSTR-3B
After clicking the ‘Confirm’ Button, you will be directed to Form GSTR-3B landing page that will display the total value of IGST, CGST, SGST/UTGST and Cess. You need to save the data by clicking the ‘Save GSTR3B’ button in case you wish you exit this page at this stage and come back later to complete the Form.
10. Click Proceed To Payment
After saving Form GSTR-3B, you need to select the ‘Proceed To Payment’ button as shown in the image below.
11. Display of Available Cash and ITC
After clicking ‘Proceed To Payment’ the cash available as on the date and ITC available (considering ITC of current tax period) are shown in below table.
12. Create Challan or Make Payment
Under this step, you can provide the amount of credit to be utilized from the respective available credit heads to pay off the liabilities, so as the cash. Then you can either ‘Create Challan’ or ‘Make Payment/Post Credit To Ledger’ depending upon the amount of cash balance in the electronic cash ledger.[/vc_column_text][/vc_column][/vc_row]