What is GST Return?
A GST Return is a document filed by GST-registered businesses to report details of income, purchases, sales, and tax paid or collected during a specific period. There are various types of GST returns, such as GSTR-1, GSTR-3B, GSTR-9, etc., depending on the nature of the business and frequency of filing.
Late Fee for GST Return
The late fee is charged when GST returns are not filed within the prescribed due dates. The late fee is charged under two sections:
- CGST (Central GST)
- SGST (State GST) or UTGST (Union Territory GST)
Rate of Late Fees:
- Normal Taxpayers (Monthly/Quarterly):
- GSTR-1 and GSTR-3B: Rs 50 per day of delay (Rs 25 each for CGST and SGST/UTGST)
- Nil Returns: Rs 20 per day of delay (Rs 10 each for CGST and SGST/UTGST)
- Annual Return (GSTR-9):
- Rs 200 per day (Rs 100 each for CGST and SGST) up to a maximum of 0.25% of the taxpayer’s turnover in the relevant state/UT.
- IGST (Integrated GST): No late fee is charged for IGST; it’s calculated only on CGST and SGST/UTGST.
Interest on Delayed GST Payment
Interest is charged for delayed payments of GST along with the return.
Rate of Interest:
- 18% per annum: On outstanding tax liability not paid by the due date.
- 24% per annum: For undue/excess claim of Input Tax Credit (ITC) or excess reduction of output tax liability.
Penalty for Non-Filing
In addition to the late fees and interest, non-filing of GST returns can lead to severe penalties, including cancellation of GST registration or legal notices. However, penalties vary and are imposed at the discretion of the tax authorities.
Using a GST Late Fee Calculator
A GST Return Fee Calculator typically requires the following inputs:
- Type of Return: GSTR-1, GSTR-3B, GSTR-9, etc.
- Turnover: Relevant turnover for annual returns.
- Due Date: Last date for filing the return.
- Actual Filing Date: The date when you file the return.
- Tax Amount: The payable tax amount, if any.
The calculator will provide:
- Total late fee (calculated based on days delayed and type of return)
- Interest amount (if applicable)
- Total penalty (in case of legal non-compliance)
Steps to Calculate Late Fees Manually
If you’d like to calculate it manually:
- Identify the Delay: Calculate the number of days between the due date and the actual filing date.
- Determine the Late Fee:
- For GSTR-1 and GSTR-3B:
- If there is a tax liability: Multiply the total days delayed by Rs 50 (CGST + SGST).
- If no tax liability (Nil return): Multiply total days delayed by Rs 20 (CGST + SGST).
- For GSTR-9 (annual return): Multiply the total delay days by Rs 200 (CGST + SGST).
- For GSTR-1 and GSTR-3B:
- Calculate Interest:
- Multiply the outstanding tax amount by the applicable interest rate (18% or 24%) and divide by 365 to get the daily interest. Multiply this by the number of days delayed.
Example Calculation
For a taxpayer who has missed the due date by 10 days:
- GSTR-3B with a tax liability of Rs 1,00,000:
- Late Fee: 10 days × Rs 50 = Rs 500.
- Interest: Rs 1,00,000 × 18% ÷ 365 × 10 = Rs 493.
- Total Fee + Interest: Rs 500 (late fee) + Rs 493 (interest) = Rs 993.
GST Amnesty Scheme (If Applicable)
In certain periods, the government may offer amnesty schemes, reducing or waiving late fees to encourage taxpayers to file their returns. Always check if such schemes are applicable.
Conclusion
A GST Return Fee Calculator simplifies the process of calculating late fees, interest, and penalties for delayed GST filings. Regular and timely filing of GST returns is critical to avoid these penalties, ensuring compliance with GST laws. If you’re unsure, many online tools are available to assist you with automated calculations.