With multiple deadlines and complex reconciliations, missing the due date for filing GST returns is common among businesses. When this happens, late fees can be charged based on the return type and exact number of days delayed, which needs to be paid through challans for filing GST returns .
It is impossible to file new returns unless the user clears the liability for late filing of returns. Here is HostBooks GST Late Fee Calculator—a user-friendly tool designed to calculate late fee for GSTR 3B and GSTR 1 online.
To use the interest calculator, follow these steps:
There are two types of Late fees that should be calculated whenever you are filing return.
When you file your GST return late, the late fees on GST returns calculated on a per-day basis, starting from the due date until the actual date of filing. However, there is usually a maximum limit on the late fees charged.
The late fee amount can also vary based on your turnover, with a smaller penalty imposed for nil returns or lower turnover. There is a GST penalty of Rs 50/day for late filing of GSTR 3B.
For example
Let's consider a business with a turnover of Rs. 10 lakhs. The due date for filing the GSTR 3B return for the month of May 2023 is June 20th, 2023. However, the business files the return on July 10th, resulting in a delay of 20 days.
In this case, let's assume that the late fee is Rs. 50 per day, subject to a maximum limit of Rs. 5,000. Since the business has a turnover of Rs. 10 lakhs, which falls within the lower turnover category, a smaller penalty is applicable.
So, for the 20-day delay in filing the return, the late fee would be Rs. 1,000 (Rs. 50 per day x 20 days). You can use the GSTR 3B late fee calculator above to calculate this part of late filing.
Apart from the late filing fee, if you also delay the payment of the GST amount you owe, you may be charged interest. Interest is the additional amount you must pay as a penalty for not paying the GST on time. The interest rate generally depends on the nature of the liability.
The GST fine calculator above doesn't calculate the Interest part. Click here for online GST late Interest Calculator. (*Coming Soon)
Assuming the interest rate is 18% per annum, the business also has a GST liability of Rs. 50,000 for the same tax period.
If the business fails to pay the GST amount by July 10th, the interest would be calculated from the due date of June 20th until the payment date. So, for the 20-day delay, the interest would be Rs. 492 (Rs. 50,000 x 18% per annum x 20 days / 365 days).
To summarize, in this combined example, the late fee for filing the GST return late is Rs. 1,000, calculated at Rs. 50 per day for a 20-day delay. Additionally, the interest on late payment amounts to Rs. 492, assuming an 18% per annum interest rate.
| Tax Period | June 2023 |
|---|---|
| Due Date | June 20th |
| Date of Filing | July 10th |
| Delay (in days) | 20 |
| Interest Calculation | Interest Rate: 18% per annum GST Liability: Rs. 50,000 Number of days of delay: 20 Interest = (Rs. 50,000 x 18% x 20) / 365 = Rs. 492 |
| Total Liability | GST Liability: Rs. 50,000 Late Fee: Rs. 1,000 Interest: Rs. 492 Total Liability = Rs. 50,000 + Rs. 1,000 + Rs. 492 = Rs. 51,492 |
The penalty for late filing of GST return is paid to both the Central Government and State Government. The fine for late filing of GST returns is calculated based on the following factors.
GSTR-3B is a monthly return that provides a summary of the outward supplies, inward supplies, and the tax liability of the taxpayer for a particular tax period.
Due Dates for GSTR-3B Filing
The due date for filing GSTR-3B is generally the 20th, 22nd and 24th of the following month depending on the turnover and state of the registered business.
| Turnover | Due Date for GSTR-3B Filing |
|---|---|
| Less than 5 Cr | 20th of every month |
| More than 5 Cr | Group 1 State*: 22nd of every month Group 2 State **: 24th of every month |
Here is the penalty payable per day for late filing of GSTR 3B.
| Type of Return | Amount per Day of Delay |
|---|---|
| Late for Normal Return | Rs. 50 (Rs. 25 CGST, Rs. 25 SGST) |
| Late Fee for taxpayers with nil tax liability | Rs. 20 (Rs. 10 CGST, Rs. 10 SGST) |
Note: As of May 2021, the law has set a maximum late fee of Rs 10,000. This implies that the government cannot charge late fees exceeding Rs 5,000 for each return filed under each Act.
Form GSTR-1 is a statement that registered taxpayers are required to file on a monthly or quarterly basis. It provides details of the outward supplies of goods and/or services made by the taxpayer.
Due Date for Filing GSTR 1
| GSTR-1 Return Filing Frequency | Due Date |
|---|---|
| Monthly Filing | 11th of the subsequent month |
| Quarterly Filing | 13th of the month following the relevant quarter |
| Type of Late Fee | Amount per Day of Delay | Maximum Late Fee |
|---|---|---|
| Late Fee for filing GSTR-1 after the due date | Rs. 50 (Rs. 25 CGST, Rs. 25 SGST) | Rs. 10,000 or the actual amount, whichever is lower |
| Late Fee for taxpayers with nil tax liability | Rs. 20 (Rs. 10 CGST, Rs. 10 SGST) | Rs. 500 or the actual amount, whichever is lower |
HostBook's GST Late Fee Calculator is completely free to use. You can simply provide relevant information such as turnover, return period, and filing date, to accurately calculate late fees payable on GST Returns.
FAQs About GST Penality Calculator
Q1. How do I calculate GST late fee?
The calculation of GST late fee depends on factors such as the type of return, state, due date, number of delays, and prevailing notifications. Late fees on each GST return is calculated on per day basis.
Q2. What is the GST late fee per day?
For GSTR-3B and GSTR-1 returns, the late fee per day is Rs 50 for a normal return and Rs 20 for a Nil return. For other returns like GSTR 9, it depends on further specification of the entities.
Q3. What is the late fee for GST per month?
The late fee for delayed GST returns is calculated based on the number of days of delay rather than a monthly basis. The late fee amount is determined based on the type of return and the liability of GST..
Q4. How do I avoid GST late fees?
To avoid GST late fees, it is essential to file your return on time before the due date..
Q5. What is the maximum late fee for a GST return?
The maximum late fee for GSTR-3B return is capped at Rs 10,000, while for GSTR-1 return, it is capped at Rs 500. This means that regardless of the actual amount of late fee calculated, it cannot exceed these maximum limits..
Q6. How do I file a zero GST return?
Filing a zero GST return follows the same process as filing a regular return. You need to enter all the required details in the return form, and for fields with no tax liability, leave them blank or enter zero as the value.
Q7. Can a GST officer waive late fees?
In certain cases, such as nil returns or businesses that are not operational, you may request the GST officer to cancel GST registration which waives the Late fee liability. The decision to waive late fees is at the discretion of the GST officer and will be evaluated on a case-by-case basis.