GST Late Payment: The government will charge interest on any GST late payment made by the taxpayer. Normally, a taxpayer’s GST liability must be paid before the 20th of the month, along with the filing of the GSTR-3 return. If the taxpayer fails to pay the liability due on that date, the late payment will be subject to interest. In this article, let’s understand everything about interest on late payment of GST in detail.
- GST Late Fees Payment
- Late Fees Under GST
- GST Late Fees Waiver Notification
- GST Late Fee Calculation for GSTR-3B And GSTR-1
- GST Interest Rate for Late Payment Of Tax
- GST Penalty for Late Filing
- FAQ’s on GST Late Payment
GST Late Fees Payment
The maximum late fee charged in the case of nil GSTR-1 and GSTR-3B filing is Rs.500 per return (i.e Rs. 250 each for CGST & SGST). Other than zero filings, the maximum late charge in GSTR-1 and GSTR-3B is set based on the yearly turnover slab, as follows:
- If the previous financial year’s annual turnover was less than Rs.1.5 crore, a late fee of up to Rs.2,000 per report can be levied (i.e Rs.1000 each for CGST and SGST).
- Only a maximum late fee of Rs.5,000 per return can be levied if the turnover is between Rs.1.5 crore and Rs.5 crore (i.e Rs. 2500 each for CGST and SGST).
- A late fee of up to Rs.10,000 (i.e. Rs. 5000 per CGST and SGST) might be levied if the turnover exceeds Rs.5 crore.
Late Fees Under GST
| Details | GST Late Fees |
| GSTR 3B, GSTR 1 and GSTR 4 (If there are Sales) | Rs 50 per day up – maximum of Rs 10,000 |
| GSR 3B, GSTR 1 and GSTR 4 (Nil Return) | Rs 20 per day – a maximum of Rs 10,000 |
| GSTR 9 & GSTR 9A | Rs 200 per day – a maximum of 0.5% of turnover |
| GSTR 10 (Final Return) | Rs 200 per day |
GST Late Fees Waiver Notification
- CGST notification 21/2021 dated 1st June 2021: The late cost for delayed submission of GSTR-4 from FY 2021-22 has been rationalised. For nil filing, the maximum late charge will be Rs. 500 per return, and for other than nil filing, it would be Rs. 2000.
- CGST announcement 22/2021 dated 1st June 2021: The maximum late cost chargeable for GSTR-7 i.e. TDS filing under GST is Rs. 2,000, but the late fee per day levied is decreased from Rs.200 to Rs.50 per act, per return.
GST Late Fee Calculation for GSTR-3B And GSTR-1
According to the GST Acts, the late charge for intrastate supplies should be paid under both the CGST and SGST Acts as follows:
| Act Name | For each day that you are late, you will be charged a cost |
| Central Goods and Services Act, 2017 | Rs 25 |
| Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 | Rs 25 |
| The total amount of late fees that must be paid per day | Rs 50 |
Filers of Nil returns must pay the following late fee:
| Act Name | Late Fees Per Day |
| CGST Act | Rs 10 |
| SGST Act | Rs 10 |
| Total late fees to be paid per day | Rs 20 |
GST Late Fee Calculator Online: While uploading GST returns, the GST website will automatically determine the amount of late fee that applies.
GST Interest Rate for Late Payment Of Tax
Interest is charged on late GST payments based on the net tax liability after deducting input tax credit claims. Every taxpayer must pay interest if he or she:
- Makes a late GST payment, i.e., after the due date, pays CGST, SGST, or IGST.
- The excess input tax credit is claimed.
- Excess output tax liability is reduced.
If GST is not paid by the due date for filing a return, interest will be charged at the following rates:
| Details | Interest |
| GST Late Payment of Taxes | 18% |
| Excess ITC Claimed Or Excess Output Tax Reduction | 24% |
GST late payments will be subject to interest at the rate of 18% per year. If it is proven that the taxpayer misrepresented his or her output tax liability on the GST return, interest at the rate of 24% will be charged.
Note: In addition to interest, the taxpayer may face a penalty under GST if he or she files an incorrect return, makes a deliberate misstatement or commits fraud.
GST Penalty for Late Filing
A notice will be issued by the Tax Officer for the amount due, plus interest and penalty, if the STG is not paid or is underpaid, or if credit is wrongfully obtained, utilised, or erroneously refunded as a result of fraud, intentional deception, or suppression of facts to escape tax.
The amount of interest that will be charged if you pay your GST late is listed below. When there is an intent to evade tax, a penalty at the rate listed below may be imposed in addition to the interest:
| Tax, Interest, and Penalty Payment Time limits | Penalty Amount |
| Before issuance of show cause notice | 15% of the tax amount due |
| Within 30 days of the show cause notice being issued | 25% of the tax amount due |
| Within 30 days from the communication of the order | 50% of the tax amount due |
| In any other circumstance | 100% of the tax amount |
FAQ’s on GST Late Payment
Question 1.
What is the late fee for GSTR 3B?
Answer:
For those taxpayers who did not have any tax burden, the late fine for non-furnishing of GSTR-3B from July 2017 to April 2021 has been fixed at Rs 500 per return. Taxpayers who owe money will be penalised a maximum of Rs 1,000 in late fines if their returns are not filed by August 31, 2021.
Question 2.
What is the late fees for GSTR-9 and GSTR-9A?
Answer:
For GSTR-9 and GSTR-9A late fees are Rs. 200 per day (CGST Rs. 100 and SGST Rs. 100) up to 0.0% of the turnover (0.25% for CGST and 0.25% for SGST).
Question 3.
Is interest on late payment of GST allowed as a deduction?
Answer:
Yes, when GST is paid, any tax, duty, cessation, or fee paid under any laws that are in force, includes GST and customs duties or any other taxes, or cessations paid, shall be allowed as deduction. Interest paid in respect of these taxes may also be deducted.