Understanding the Late Fee for Delay in Filing GST Annual Return

Failure to meet the deadlines for filing Goods and Services Tax (GST) returns can result in significant penalties and interest. This article will provide a comprehensive guide on the late fees and interest associated with delays in filing GST returns, with a focus on the details of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST).

What is the Late Fee for Delay in Filing GST Annual Return?

Delays in filing GST returns can lead to a late fee, which is a penalty imposed by the government to ensure timely compliance. The late fee is calculated as Rs. 100 per day for both CGST and SGST, resulting in a total of Rs. 200 per day for each return. For small-scale businessmen, the rate is reduced to 50% of this amount.

Penalties and Fees for Late Filing of GST Returns

The late filing fee can vary depending on the type of GST return. Here's a breakdown of the charges:

For GSTR-3B: There is a flat fee of Rs. 50 for Normal Return and Rs. 20 for Nil Return, with no additional late filing fees. For IGST (Integrated GST): There is no late fee on IGST. Other GST Returns: The late filing fee ranges from Rs. 20 to Rs. 200 per day, depending on the delay.

It's important to note that the interest rate on the amount of outstanding tax is 18% per annum, which is calculated from the next day of filing to the day of actual payment. The late fee also applies to the interest.

Common Offences and Their Penalties under GST

In addition to the late fee for the delay in filing GST returns, various other penalties can be imposed for different GST violations. Here are some common offences and their respective penalties:

Penalty for Delay in Filing GSTR

For CGST and SGST: Rs. 100 per day is charged. For IGST: No late fee is charged.

Penalty for Not Filing GSTR

Penalty of 10% of the tax due, or Rs. 10,000, whichever is higher.

Penalty for Committing a Fraud

Penalty of 100% of the tax due, or Rs. 10,000, whichever is higher. In high-value fraud cases, there may also be a jail term.

Penalty for Helping a Person to Commit Fraud

Penalty extending up to Rs. 25,000.

Penalty for Opting for Composition Scheme Even Though Eligible

Demand and recovery provisions of sections 73 and 74 will apply.

High and Non-Fraud Cases Penalties

For Fraud Cases: Rs. 100 of tax due or Rs. 10,000, whichever is higher. For Non-Fraud Cases: 10% of tax due or Rs. 10,000, whichever is higher.

Charging Higher GST Rate Incorrectly

Penalty of 100% of tax due or Rs. 10,000, whichever is higher.

Penalty for Not Submitting the Additional GST Collected

Penalty of 100% of tax due or Rs. 10,000, whichever is higher.

Penalty for Not Issuing Invoices

Penalty of 100% of tax due or Rs. 10,000, whichever is higher.

Penalty for Not Registering Under GST

Penalty of 100% of tax due or Rs. 10,000, whichever is higher.

Penalty for Incorrect Invoicing

Penalty of Rs. 25,000.

Conclusion: Filing GST returns on time is crucial to avoid penalties, interest, and late fees. Understanding the specific rates and deadlines for each type of return is essential for compliance. In case of doubt, seeking professional help is advisable to ensure timely and accurate filing of GST returns.