Question 1

How is the late fee calculated in GST?

Accepted Answer

The late fee calculation in GST varies based on various factors, including return type, state, due date, frequency of delays, and applicable notifications. Late charges for each GST return are computed daily.

Question 2

What is the limit of the GST late fee?

Accepted Answer

The maximum late fee on a GSTR-3B return is Rs 10,000; a GSTR-1 return is fixed at Rs 500. The maximum limit indicates that the late fee cannot exceed the set amount regardless of the calculated late fee amount.

Question 3

How is the GSTR 1 late fee calculated?

Accepted Answer

The late fee for late GSTR 1 filing is Rs.100 per day - Rs.50 under CGST and Rs.50 under SGST. For businesses with a turnover of up to Rs.1.5 crore, the late fee for GSTR-1 filing is Rs.20 per day (Rs.10 under CGST and Rs. 10 under SGST).

Question 4

Do late fees attract GST?

Accepted Answer

Yes, late fees for delayed filing of GST returns attract GST. As per the GST law, late fees are considered as a consideration for the supply of services, and therefore, GST applies to the late fee amount.

Question 5

Can GST late fees be waived?

Accepted Answer

GST late fees can be waived under certain circumstances. The government has the authority to waive or reduce the fee in cases where there are genuine reasons for the delay, such as technical glitches on the GST portal, natural disasters, or other exceptional situations beyond the taxpayer's control.

Question 6

How are late fees calculated on invoices?

Accepted Answer

A late fee on due invoices varies for each company and is purely based on the company’s late payment terms and conditions. Typically, companies charge a flat fee or a percentage of the invoice amount as a late fee in cases where the customer fails to clear the invoice within the due date. Sometimes, the late payment is a one-time charge, or it could accrue daily, weekly or monthly.

Question 7

How do I avoid late fees in GST?

Accepted Answer

Stay informed about the due dates for filing GST returns and try to file the returns on time. Set reminders, keep your records organized, or consider using billing software to streamline or automate the GST filing process.

Question 8

What is the maximum late fee for GSTR 3B nil return?

Accepted Answer

For a GSTR-3B nil return, the maximum late fee levied is Rs.40 per day (Rs.20 under CGST and Rs.20 under SGST. However, the maximum late fee for a nil return is capped at Rs.500, irrespective of the total computed amount.

Question 9

What is the maximum late fee for GSTR 1?

Accepted Answer

The maximum late fee on GSTR-1 returns is fixed at Rs 500.

Question 10

What is the maximum penalty for GSTR 9?

Accepted Answer

The maximum penalty for late filing of GSTR 9 is 0.04% of turnover for businesses whose turnover is between Rs.5 crore and Rs.20 crore. For taxpayers whose turnover is over Rs.20 crore, it is 0.25%.

Particulars	Interest
Tax paid after the due date	18%
Excess ITC claimed or excess reduction in output tax liability	24%

Particulars	Normal Return Filers	Nil Return Filers
CGST Act	Rs 25	Rs 10
SGST/UTGST Act	Rs 25	Rs 10
IGST Act	Rs 50	Rs 20

GST Late Fee Calculator

How Does the GST Late Fee Calculator Work?

What Are the Interests and Late Fees Under the GST Act?

How to Use the GSTR-3B Late Fee Calculator?

Frequently Asked Questions

Table of Contents

Automate your GST Compliances with Masters India