Automatic GST Late Fees Calculator | Interest Calculator on Late Filling of GSTR 3B

Since, GST is being operationalised since Jul-17, One of major concern is how to calculate INTEREST on late payment of GST & Late fees for filling GSTR 3B.

Calculator for Late Fees under GST

As per GST laws, the Late Fee is an amount charged for delay in filing GST returns. It can be referred to as an overdue fine. Right now , this late fees is at Rs. 25 per day for CGST & Same for SGST

Automatic GST Late Fees Calculator in Excel. A Simple Automatic GST Late Fees Calculator in Excel Format for easy calculation of Late Fees Payable for late filing of Form GSTR 3B which calculates  late fees under both CGST and SGST.

Download Automatic GST Late Fees Calculator in Excel

Calculator for Interest on late payment & late filling of  GSTR – 3B

Interest  is applicable on Late Payment of GST Due. Interest has to be paid by every taxpayer who:

• Makes a delayed GST payment i.e. pays GST after the due date. i.e at 18% pa
• Claims excess Input Tax Credit i.e at 24% pa

Here we have tried to make Excel calculator for delayed GST payment.

AN EXCEL  UTILITY FOR delayed GST payment   FOR GSTR 3B  RETURNS ( FOR LATE FILING GSTR 3B  )

Download Interest Calculator on Late Filling of GSTR 3B

——————————–

Provisions for Interest under CGST Act:-

Section 50 of CGST Act, 2017 mainly deals with interest payable under the Act. First two sub-sections of section 50 contains provisions for payment of interest on delayed payment of taxes. For sake of ready reference, let us go through the test of both the sub-sections which casts liability on the taxable persons to pay interest, if he fails to pay the tax or any part thereof.

“Section 50(1):- Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.”

“Section 50(2):- The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.”

Section 50 does not prescribes the amount on which interest is to be levied:-

In light of the provisions under the aforesaid sub-sections, the following questions may be addressed as below:-

a) Who is liable to pay interest:-

Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed is liable to pay interest. [50(1)]

b) At what rate:-

At such rate not exceeding 18%, as may be notified by the Government on the recommendations of the Council. The Government has notified 18% vide Notification No. 13/2017 – Central Tax dated 28/06/2017. [50(1)]

c) On which amount the interest is to be paid:-

Not specifically mentioned in the section 50. It may be recalled that section 75 of the Finance Act, 1994 was also silent on this question.

d) For which period:-

For the period for which the tax or any part thereof remains unpaid. [50(1)]

e) When to pay the interest:-

Not mentioned in the section.   However as per rule 61(3), every registered person furnishing the return under sub-rule (1) shall, subject to the provisions of section 49, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger or electronic credit ledger and include the details in Part B of the return in FORM GSTR-3.

f) Whether any notice is required:-

No. Interest is to be paid on his own. [50(1)]

Case law –

High Court of Telangana in case of M/s. Megha Engineering & Infrastructures Ltd. v/s The Commissioner of Central Tax vide its Writ Petition No: 44517 dated 18th April 2019 has held that be Ready to pay more by way of interest since high court confirmed the action on charging interest u/s 50 on a gross basis without giving the benefit of ITC.

Unfortunately, the recommendations of the GST Council are still on paper. Therefore, we cannot interpret Section 50 in the light of the proposed amendment.

Therefore, High Court confirmed the Interest payment on Gross Liability u/s 50.