GST Late fee being observed in September return is actually a carry forward of late fee of the return filed for the month of August.
Any late fee left unpaid from previous tax period will be carried forward to next tax period . The calculation is done as under:
For example: Return for the month of August was submitted on 22nd Sept but filed on 26th Sept. In this case the system has worked out the late fee of Rs. 400/- (2 X 200/-) upto the date of submission. This late fee of Rs. 400/- is populated to table 6.1 of GSTR-3B for payment.
At the time of setting off the liability, payment of Rs. 400/- only will be accounted for.
Suppose, the tax payer does not file return on 22nd September (the day of submission) but comes to file the return on 26th September. Since, the return is filed on 26th September, the tax payer is liable to pay late fee for 6 days (26th September – 20th September) but the taxpayer has paid late fee along with return for two days only i.e. the difference between the due date of filing and the date of submission.
Thus, the tax payer is liable to pay a late fee for Six days (26-20)but he has paid late fee for two days only.
Therefore, the late fee of remaining four days (26-22) will be carried forward to the next month’s return i.e. September 2017