GST Late Fee Calculator
Facing difficulty in calculating GST late fees? You’ve landed at the right place. Here, you will find all the key information related to GST late fee and how to calculate it. Read on to know more about it.
According to the GST law, the amount charged for delay in filing the GST returns is known as late fees. A certain amount of late fees will be charged for each day of the delay. This generally happens when a GST registered business fails to file the GST returns within the stipulated time.
The late fee needs to be paid in cash and input tax credit present in the electronic ledger cannot be utilized for payment of the late fees.
If there is a delay in filing nil returns, a late fee is applied even then. For example, even if there is no sales or purchase and no GST liability to declare in GSTR-3B, still late fee is applicable.
The amount of late fees will depend on the number of days of delay from the due date. In the present scenario, the GST portal is liable to charge late fees only on returns of the following:
- GSTR-3B
- GSTR-4
- GSTR-5
- GSTR-5A
- GSTR-6
- GSTR-8
- GSTR-7
- GSTR-9
Amount of Late Fees Applicable
According to the 43rd Indian GST Council meeting’s result, there has been a reduction in the maximum late fee according to the type of return and turnover slab. This has been notified through the CGST notifications 19/2021, 20/2021 dated 1st June 2021 for GSTR-3B and GSTR-1.
- If you have been trapped in the case of GSTR-1 and GSTR-3B filing, then a maximum of Rs.500 per return (i.e Rs. 250 each for CGST & SGST) will be charged.
- In the cases other than nil filing in GSTR-1 and GSTR-3B, the maximum late fee is fixed based on the annual turnover slab, as follows:
- In case the annual turnover of the last financial year amounts to up to Rs.1.5 crore, then a of maximum Rs 2,000 per return late fee can only be charged (that implies Rs.1000 each for CGST and SGST).
- In case turnover is between Rs.1.5 crore and Rs.5 crore, then the maximum of Rs.5,000 per return late fee can only be charged (i.e Rs. 2500 each for CGST and SGST).
- In case, the turnover is greater than Rs.5 crore, then a maximum of Rs.10,000 (i.e., Rs. 5000 per CGST and SGST) can be charged as late fees.
In addition to this, the late fee has been improvised if there is a delay in filing of GSTR-4 from the Fiscal Year 2021-22, through the CGST notification 21/2021 dated 1st June 2021. The maximum late fee is limited to Rs.500 per return for nil filing whereas it is kept Rs. 2000 for other than nil filing.
Based on CGST notification 22/2021 dated 1st June 2021, it has been stated that the late fee charged for GSTR-7 i.e., TDS filing under GST will be Rs. 2,000 maximum while late fee per day charged has been reduced from Rs.200 to Rs.50 per day of delay, per act, per return.
Late fee computation for GSTR-3B and GSTR-1
Based on the GST Act, the late fee needs to be paid under both the CGST and SGST Act for intrastate supplies. Take a look:
Act | Late fees of every day of delay |
Central Good and Services Act, 2017 | Rs 25* |
Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 | Rs 25* |
Total late fee that has to be paid per day | Rs 50* |
According to the law, a maximum late fee of Rs 10,000 has been fixed up to May 2021. This implies that the Government can charge a maximum of Rs 5000 for each return being filed under each Act.
However, the maximum late fee has been improvised from the June 2021 return period onwards, as provided in the above-mentioned section.
The Nil return filers have to pay the below mentioned late fee:
Act | Late fees for each day of delay |
CGST Act | Rs 10* |
SGST Act | Rs 10* |
Total late fee that has to be paid per day | Rs 20* |
For GSTR-1 and GSTR-3B, the maximum late fee has been improvised from the June 2021 return period onwards, as given in the above section.
For example, if a Taxpayer has filed GSTR-3B for the month of December 2020 on 24th January 2021, when the actual due date was 20th Jan 2021.
Then the amount of late fees to be paid would be Rs.200 (Rs. 50 per day for 4 days). The late fee would be Rs.100 under CGST and Rs.100 under SGST.
If it was a return with ‘Nil’ tax liability, then late fees would have been Rs. 80 (20 per day 4 days). The late fee would be Rs.40 under CGST and Rs.40 under SGST.
* The original late fee was Rs.100 per day under each CGST Act and SGST Act. Under CGST Act and SGST Act, the original late fee for Nil return filers was Rs.25 per day. However, late fees have been reduced in order to provide relief to the businesses that face difficulties in GST return filing.
For GST Annual Returns (GSTR-9)
Act | Late fees for each day of delay |
Central Goods and Services Act, 2017 | Rs 100* |
Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 | Rs 100* |
Total Late fees | Rs 200* |
According to the law, the maximum late fee will be calculated at 0.25% of the turnover for the financial year.
Up-to-date List of late fee notifications
Let’s take a look at the changes that have been incorporated on the applicability of the late fees:
GSTR-1
Applicable Return Period/s | Applicability of Late fee | Notification Link |
June 2021 for monthly filers & quarter of June 2021 for QRMP taxpayers | There has been a reduction in the maximum late fee. If you are a nil filer, the late fee will be Rs.500 per return. Apart from this, it is kept according to the turnover slabs, as mentioned in the above section. | |
Months March 2020 – June 2020 & Quarter ending 31st March 2020 and 30th June 2020 | Waived off completely if filed before the specified dates of July-August 2020. | |
Months March 2020 – April 2020 and Quarter ending 31st March 2020 | If the return is filed before the specified dates of June-July 2020, then the late fee is waived off completely | |
July 2017 – November 2019 | If you file between 19th December 2019 and 10th January 2020, the late fee will be waived off completely | |
July 2019 | If you are a taxpayer residing in some specific districts of the flood-affected States and all districts of J&K, then the late fee is waived off completely. | |
July 2017 – September 2018 | Waive off completely** | |
July 2017 onwards | Reduced Late fee** |
GSTR-3B
Applicable Return Period/s | Applicability of Late fee | Notification Link |
For June 2021 in case of monthly filers & a quarter of June 2021 for QRMP taxpayers | There has been reduction in the late fee. If you are a nil filer, the fee will be kept at Rs.500 per return. Apart from this, it is kept according to the turnover slabs, as mentioned in the above section. | |
From July 2017 to April 2021 | There will be a conditional waiver of late fee for delay in filing GSTR-3B, in case it is not filed between 1st June and 31st August 2021. The maximum late fee that will be charged will be Rs 500 per act per return. | |
For monthly filers: March and April 2021 For quarterly filers: Jan-Mar 2021 | For delay in filing GSTR-3B, there will be a conditional waiver of late fee. For a business with a turnover of more than Rs.5 crore there will be no late fee for 15 days of delay. However, for turnover up to Rs.5 crore, there will be no late fee for 30 days of delay | |
If your business has a turnover of more than Rs 5 crore May 2020 – July 2020 If your business has a turnover of equal to or less than Rs 5 crore February 2020 – July 2020 | The maximum late fee to be charged is Rs 500 per return filed post the dates given in notification 52/2020 but before 30th September 2020. However, there will be no late fee for nil return. | |
1. If you have a turnover of more than Rs 5 crore (February 2020 – April 2020) 2. If you have a turnover of equal to or less than Rs 5 crore (February 2020 – July 2020) 3. Awaiting for months July 2017 – January 2020 | 1. & 2. Waived off completely in case the filing has been done before the staggered specified dates of June-September 2020. 3. The maximum late fee is Rs 500 per return filed between 1st July 2020 and 30th September 2020. However, for nil return, there is no late fee. | |
February 2020 – April 2020 | Completely waived off in case the filing has been done before the staggered specified dates of June-July 2020. | |
October 2018 onwards | Reduced Late fee** | |
July 2017 -September 2018 | Reduced Late fee** If filed beyond 31st Mar 2019 | |
July 2017 -September 2018 | Waived off completely** In case filing has been done between 22nd Dec 2018 and 31st Mar 2019 | |
October 2017 only | Waived off completely** In case GSTR-3B submission has been made but not filed owing to a technical glitch | |
October 2017-April 2018 GSTR-3B was yet to be filed by those who submitted TRAN-1 on the GST portal, but could not file it by 27th Dec 2017. | Waived off completely** The condition that needs to be fulfilled: Such registered persons have filed the declaration in TRAN-1 on or before the 10th May 2018 and the return in GSTR-3B for each of such months, on or before the 31st May 2018 | |
October 2017 onwards | Reduced Late fee** The condition that needs to be fulfilled: If the date of filing was before 22nd December 2018 | |
July 2017 -September 2017 | Waived off completely** Condition that needs to be satisfied: If the date of filing was before 22nd December 2018 |
GSTR-4 (Annual)
Applicable Return Period/s | Applicability of Late fee | Notification Link |
Fiscal Year 2021-22 onwards | The maximum late fee to be charged will be limited to Rs.500 per return for nil filing & Rs. 2,000 for other than nil filing | |
For Fiscal Year 2019-20 for those filing GSTR-4 from UT of Ladakh | If the return is filed between 1st November 2020 and 31st December 2020, then the late fee is waived |
GSTR-4 (Quarterly)
Applicable Return Period/s | Applicability of Late fee | Notification Link |
Quarters from July 2017 to March 2020 | The maximum late fee is limited to Rs.500 per return in case the return is filed between 22nd September 2020 and 31st October 2020. | 67/2020 |
July 2017 -September 2018 | Reduced Late fee** If filed beyond 31st Mar 2019 | |
July 2017 -September 2018 | Waived off completely** In case it is filed between 22nd Dec 2018 and 31st Mar 2019 | |
October 2017 to December 2017 | Complete waive off** GSTR-4 filed within the specified due date, but late fee mistakenly imposed on GST portal | |
July 2017 onwards | Reduced Late fee** | |
GSTR-5 | ||
Applicable Return Period/s | Applicability of Late fee | Notification Link |
July 2017 onwards | Reduced Late fee** | |
GSTR-5A | ||
Applicable Return Period/s | Applicability of Late fee | Notification Link |
Returns for July 2017 onwards filed on or after 7th Mar 2018 | Full Late fee applicable^ | |
July 2017 onwards | Reduced Late fee** |
GSTR-6
Applicable Return Period/s | Applicability of Late fee | Notification Link |
July 2019 | Complete waive off for taxpayers in some specific districts of the flood-affected States and all districts of J&K | |
For any tax period prior to January 2018 | Completely waived off** | |
July 2017 onwards | Reduced Late fee** There will be no late fees for the delay in filing a Nil return |
Note: The important point to note is that returns including GSTR-7, GSTR-8, GSTR-5A, or GSTR-9 will have late fees applicable to them as per the Act at a normal fee.
** If the amount is paid before the waiver, it will be credited to the electronic cash ledger for use. This amount can be paid against the tax liability.
^The previous notification 6/2018 was cancelled prospectively.
How to Deposit Late fees with the Government?
While submitting the GST returns, the late fee that is applicable will automatically be calculated by the GST portal.
You are required to pay the late fee in cash separately for CGST, and SGST in separate electronic cash ledgers. Also, you cannot file the GST return without paying the late fee.
If you want to calculate the late fee for the month, then the previous month’s late fee charged due to delay in return filing, will also be included. Also, interest will be added in case of non-payment or late payment of GST.
Interest under GST & Calculation
Interest will be implied on late payment of GST liability on the net tax liability on reducing the input tax credit claims. The interest needs to be paid by the taxpayer who meets the following conditions:
- Makes a delayed GST payment i.e., pays CGST, SGST, or IGST once the due date is over.
- Claims excess input tax credit
- Reduces excess output tax liability
In case GST is not paid within the stipulated time i.e. the due date of filing return, you need to pay the interest at the following rates:
Particulars | Interest |
Tax paid after due date* | 18% p.a. |
Additional ITC Claimed or additional reduction in Output Tax | 24% p.a. |
* Owing to the COVID-19 pandemic, interest has been reduced for various periods.
The interest has to be calculated from the next day from the due date.
For example, a taxpayer does not make a tax payment of Rs. 10,000 for the month of December 2020, when 20th January 2021 was the due date. If he makes the payment on 20th March 2021, the interest for the delay period (61 days: from 21st January till 20th March) will be calculated as follows:
Rs.10,000 * 61/365 * 18% = Rs.300.82
Thus, it is vital to do tax payments and file GST returns within the due dates. Otherwise, it can result in late fees and penalties.
How can Deskera help you in your business?
Deskera Books is a time-saving strategy for managing your work contacts, invoicing, bills and expenses. You can also import opening balances and set up chart accounts through it.
Deskera Books is software that enables you to generate e-Invoices for Compliance with the Indian jurisdiction. It lets you easily create e-invoices by clicking on the Generate e-Invoice button.
A quick video tour will help you get a better understanding of the entire process in a few minutes.
Now that you have Deskera, you can easily manage your journals. A single interface gives you access to all remarkable features, including the ability to add products, services, and inventory.
You can automatically generate and send invoices using this accounting software. Further, creating financial statements has become considerably easier thanks to the software, which lets you draft balance sheets, income statements, profit and loss statements, and cash flow statements.
GST and the process related to this can turn out to be troublesome for most people. This is where Deskera can help you. With Deskera blogs, you can understand the topics such as GSTR1, GSTR2A, GSTR2B, GSTR3B, etc. in a better manner.
You can even manage your business contacts, invoicing, bills, and expenses with Deskera Books. Not only this, you can even import opening balances and create chart accounts through it.
No matter where you are based, Deskera books will handle all your core business tasks with much ease. With Deskera Books by your side, you can say goodbye to all your accounting troubles.
Key Takeaways
- Based on the GST law, the amount charged for delay in filing the GST returns is known as late fees. A certain amount of late fees will be charged for each day of the delay. This generally happens when a GST registered business fails to file the GST returns within the stipulated time.
- The amount of late fees applicable depends on the number of days of delay and the type of return filed
Related Links