What is the penalty for late gst filing

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A return is a document containing details of income which a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability.

After GST registration, a registered dealer has to file GST returns that include:

  • Purchases
  • Sales
  • Output GST (On sales)
  • Input tax credit (GST paid on purchases)

Any regular business has to file two monthly returns and one annual return. This amounts to 26 returns in a year.

The beauty of the system is that one has to manually enter details of one monthly return – GSTR-1. The other return GSTR 3B will get auto-populated by deriving information from GSTR-1 filed by you and your vendors.

Every taxpayer who falls under GST criteria has to do GST return filing periodical or monthly. Here in this article we will understand what is the penalty for late GST filing.

Penalty for late GST return filing

If any of the offenses are committed then a penalty will have to be paid under GST. The principles on which these penalties are based are also mentioned by law.

  • For late filing GST return

Late filing attracts penalty called late fee. The late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day*. The maximum is Rs. 5,000. There is no late fee on IGST in case of delayed filing.

Along with late fees, interest has to be paid at 18% per annum. It has to be calculated by the taxpayer on the tax to be paid. The time period will be from the next day of filing to the date of payment.

  • For not filing GST return

If you don’t file any GST return then subsequent returns cannot be filed. For example, if GSTR-2 return of August is not filed then the next return GSTR-3 and subsequent returns of September cannot be filed.

Here in this article, we have understood what is the penalty for late GST filing, it will surely be useful for you to grow your business.

The next important step in managing your business is to open current account online. Once this is done you are all set to manage and maintain your business smoothly and successfully.