Late Fees under GST
As per the GST laws, late fee is an amount charged for delay in filing the GST returns. A prescribed late fees will be charged for each day of delay, when a GST registered business misses filing GST returns within the prescribed due dates..
The late fee should be paid in cash and the taxpayer cannot use the Input Tax Credit (ITC) available in electronic credit ledger for payment of late fee.
The late fee is also applicable for the delay in filing nil returns. For example:- one has to pay a late fee even though there are no sales or purchases and no GST liability to declare in the GSTR-3B.
The late fee will depend upon the number of days of delay from the due date. GST return in GSTR-3B is filed on 23rd January 2021, 3 days after the prescribed due date i.e 20th January 2021. The late fees will be calculated for three days and it should be deposited in cash.
However, currently, the GST portal is aligned to charge a late fee only on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9 only.
Amount of Late fees applicable
Maximum late fee rationalised from June 2021 or quarter ending June 2021
As per the 43rd GST council meeting, maximum late fee is reduced to the following amounts based on type of return and turnover slab, notified via the CGST notifications 19/2021, 20/2021 dated 1st June 2021 for GSTR-3B and GSTR-1.
- In case of nil GSTR-1 and GSTR-3B filing, the maximum late fee charged shall be capped at Rs.500 per return (i.e Rs. 250 each for CGST & SGST).
- In GSTR-1 and GSTR-3B other than nil filing, maximum late fee is fixed based on annual turnover slab, as follows:
- If the annual turnover in the previous financial year is upto Rs.1.5 crore then the late fee of maximum Rs 2,000 per return can only be charged (i.e Rs.1000 each for CGST and SGST).
- If the turnover ranges between Rs.1.5 crore and Rs.5 crore then the maximum late fee of Rs.5,000 per return can only be charged (i.e Rs. 2500 each for CGST and SGST).
- If the turnover is more than Rs.5 crore then late fee of maximum Rs.10,000 (i.e Rs. 5000/- per CGST and SGST) can be charged.
Additionally, the late fee has been rationalized for delayed filing of GSTR-4 from F.Y 2021-22, via the CGST notification 21/2021 dated 1st June 2021. The maximum late fee will be restricted to Rs.500/- per return for nil filing and Rs. 2000/- for other than nil filing.
According to CGST notification 22/2021 dated 1st June 2021, the late fee chargeable for GSTR-7 i.e TDS filing under GST shall be of maximum Rs. 2,000 while late fee per day charged is reduced from Rs.200 to Rs.50 per day of delay, per act, per return.
Late fee computation for GSTR-3B and GSTR-1
- As per the GST Acts, for intrastate supplies, the late fee should be paid under both the CGST and SGST Act as follows:
| Name of the Act | Late fees for every day of delay |
|---|---|
| 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* |
| Total late fees to be paid per day | Rs 50* |
| The law has fixed a maximum late fees of Rs 10,000 up to May 2021. This means that in any case, the maximum late fees that can be charged by the Government is Rs 5,000 each return being filed under each Act. However, the maximum late fee has been rationalised from the June 2021 return period onwards, as given in the above section. | |
- The Nil return filers must pay the below mentioned late fee:
| Name of the Act | Late fees for every day of delay |
|---|---|
| CGST Act | Rs 10* |
| SGST Act | Rs 10* |
| Total late fees to be paid per day | Rs 20* |
| The maximum late fee has been rationalised for GSTR-1 and GSTR-3B from the June 2021 return period onwards, given in the above section. | |
For example, a Taxpayer has filed GSTR-3B for the month of December 2020 on 23rd January 2021, where actual due date was 20th Jan 2021.
Amount of late fees to be paid would be Rs.150 (Rs. 50 per day for 3 days). The late fee would be Rs.75 under CGST and Rs.75 under SGST.
If the above return was a return with ‘Nil’ tax liability then late fees would be Rs. 60 (20 per day 3 days). The late fee would be Rs.30 under CGST and Rs.30 under SGST.
* The original late fees used to be Rs.100 per day under each CGST Act and SGST Act. Also, the original late fee for Nil return filers used to be Rs.25 per day under each CGST Act and SGST Act. However, CBIC has notified reduced late fees to provide relief for businesses having difficulties in GST return filing.
For GST annual returns (GSTR-9)
| Name of the Act | Late fees for every day of delay |
|---|---|
| Central Goods and Services Act, 2017 | Rs 100* |
| Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 | Rs 100* |
| Total Late fees to be paid | Rs 200* |
| The law has fixed a maximum late fees of an amount calculated at 0.25% of the Turnover for the financial year. | |
Up-to-date List of late fee notifications
Following are the changes that have been made on the applicability of the late fees:
GSTR-1
| Applicable Return Period/s | Applicability of Late fee | Link to Notification |
| June 2021 for monthly filers and quarter of June 2021 for QRMP taxpayers | Maximum late fee is reduced. For nil filers, it is fixed at Rs.500 per return. For the rest, it is fixed as per turnover slabs, explained in the above section. | 20/2021 |
| Months March 2020 – June 2020 and Quarter ending 31st March 2020 and 30th June 2020 | Waived off completely if filed before the specified dates of July-August 2020. | 53/2020 |
| Months March 2020 – April 2020 and Quarter ending 31st March 2020 | Waived off completely if filed before the specified dates of June-July 2020. | 33/2020 |
| July 2017 – November 2019 | Waived off completely if filed between the period from 19th Dec. 2019 to 10th Jan. 2020. | 74/2019 |
| July 2019 | Waived off completely for taxpayers in certain districts of the flood-affected States and all districts of J&K | 41/2019 |
| July 2017 – September 2018 | Waived off completely** | 75/2018 |
| July 2017 onwards | Reduced Late fee** | 4/2018 |
GSTR-3B
| Applicable Return Period/s | Applicability of Late fee | Link to Notification |
| For June 2021 in case of monthly filers and quarter of June 2021 for QRMP taxpayers | Maximum late fee is reduced. For nil filers, it is fixed at Rs.500 per return. For the rest, it is fixed as per turnover slabs, explained in the above section. | 19/2021 |
| From July 2017 to April 2021 | Conditional waiver of late fee for delay in filing GSTR-3B, If now filed between 1st June to 31st August 2021 with maximum late fee charged at Rs.500 per act per return. | 19/2021 |
| For monthly filers: March and April 2021For quarterly filers: Jan-Mar 2021 | Conditional waiver of late fee for delay in filing GSTR-3BFor turnover more than Rs.5 crore- No late fee for 15 days of delay For turnover up to Rs.5 crore- No late fee for 30 days of delay | 09/2021 |
| For turnover more than Rs 5 crore. May 2020 – July 2020 For turnover equal to or less than Rs 5 crore February 2020 – July 2020 | The maximum late fee to be capped at Rs 500 per return filed after the dates given in notification 52/2020 but before 30th September 2020, whereas nil return to not be charged any late fee. | 57/2020 |
| 1. For turnover more than Rs 5 crore (February 2020 – April 2020) 2. For turnover equal to or less than Rs 5 crore (February 2020 – July 2020) 3. Pending for months July 2017 – January 2020 | 1. & 2. Waived off completely if the filed before the staggered Specified dates of June-September 2020. 3. The maximum late fee to be capped at Rs 500 per return filed between 1st July 2020 and 30th September 2020, whereas Nil return attracts no late fee. | 52/2020 |
| February 2020 – April 2020 | Waived off completely if the filed before the staggered Specified date of June-July 2020. | 32/2020 |
| October 2018 onwards | Reduced Late fee** | 76/2018 |
| July 2017 -September 2018 | Reduced Late fee** If filed beyond 31st Mar 2019 | 76/2018 |
| July 2017 -September 2018 | Waived off completely** If filed between 22nd Dec 2018 to 31st Mar 2019 | 76/2018 |
| October 2017 only | Waived off completely** For GSTR-3B submission made but not filed due to a technical glitch | 41/2018 |
| October 2017-April 2018 GSTR-3B was yet to be filed by those who submitted TRAN-1 on the GST portal, but could not file it by 27th Dec 2017. | Waived off completely** Condition to be satisfied: Such registered persons have filed the declaration in TRAN-1 on or before the 10th May 2018 and the return in GSTR-3B for each of such months, on or before the 31st May 2018 | 22/2018 |
| October 2017 onwards | Reduced Late fee** Condition to be satisfied:- If the date of filing was before 22nd December 2018. | 64/2017 |
| July 2017 -September 2017 | Waived off completely** Condition to be satisfied: If the date of filing was before 22nd December 2018 | 28/2017 and 50/2017 |
GSTR-4 (Annual)
| Applicable Return Period/s | Applicability of Late fee | Link to Notification |
| FY 2021-22 onwards | Maximum late fee that can be charged will be restricted to Rs.500 per return for nil filing and Rs. 2,000 for other than nil filing. | 21/2021 |
| For FY 2019-20 for those filing GSTR-4 from UT of Ladakh | The late fee is waived if return is filed between 1st November 2020 and 31st December 2020 | 93/2020 |
GSTR-4 (Quarterly)
| Applicable Return Period/s | Applicability of Late fee | Link to Notification |
| Quarters from July 2017 to March 2020 | Maximum late fee is restricted to Rs.500 per return if the return is filed between 22nd September 2020 and 31st October 2020. | 67/2020 |
| July 2017 -September 2018 | Reduced Late fee** If filed beyond 31st Mar 2019 | 77/2018 |
| July 2017 -September 2018 | Waived off completely** If filed between 22nd Dec 2018 to 31st Mar 2019 | 77/2018 |
| October 2017 to December 2017 | Waived off completely** GSTR-4 filed within due date, but late fee erroneously levied on GST portal | 41/2018 |
| July 2017 onwards | Reduced Late fee** | 73/2017 |
GSTR-5
| Applicable Return Period/s | Applicability of Late fee | Link to Notification |
| July 2017 onwards | Reduced Late fee** | 5/2018 |
GSTR-5A
| Applicable Return Period/s | Applicability of Late fee | Link to Notification |
| Returns for July 2017 onwards filed on or after 7th Mar 2018 | Full Late fee applicable^ | 13/2018 |
| July 2017 onwards | Reduced Late fee** | 5/2018 |
GSTR-6
| Applicable Return Period/s | Applicability of Late fee | Link to Notification |
| July 2019 | Waived off completely for for taxpayers in certain districts of the flood-affected States and all districts of J&K | 41/2019 |
| For any tax period prior to January 2018 | Completely waived off** | 41/2018 |
| July 2017 onwards | Reduced Late fee** No late fees for the delay in filing a Nil return | 7/2018 |
Note: Rest of the returns like GSTR-7, GSTR-8, GSTR-5A or GSTR-9 will have late fees applicable to them as per the Act at normal fee.
** If paid before the waiver, this amount will be credited into the electronic cash ledger for use, to pay against the tax liability.
^ The previous notification 6/2018 was cancelled prospectively.
How to deposit Late fees with Government
Amount of Late fee applicable will automatically be calculated by the GST portal while submitting the GST returns.
The Late fee is paid in cash separately for CGST, and SGST in separate electronic cash ledgers. GST return cannot be filed without the payment of the Late fee.
Late fee for the month includes previous month’s late fee charged due to delay in filing of the return. Also, non-payment or late payment of GST attracts Interest.
Interest under GST & Calculation
Interest is applicable on late payment of GST liability on the net tax liability after reducing the input tax credit claims. The interest has to be paid by every taxpayer who:
- Makes a delayed GST payment i.e. pays CGST, SGST or IGST after the due date.
- Claims excess input tax credit
- Reduces excess output tax liability
If GST is not paid within the due dates of filing return Interest at following rates has to be paid:
| Particulars | Interest |
| Tax paid after due date* | 18% p.a. |
| Excess ITC Claimed or excess reduction in Output Tax | 24% p.a. |
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