I hereby want to discuss some of the penal aspects with respect to GST with special focus to latest amendments in the GST Acts and Rules. GST is one of the important Indirect tax of India. But, the non-compliance of the GST will attract penal provisions under CGST ACT, IGST ACT and respective SGST ACT/UTGST ACTS.

1. Notice to defaulters (Sec 46 of CGST Act)

Where a registered person fails to furnish a return under section 39 or section 44 or section 45, a notice shall be issued requiring him to furnish such return within fifteen days in such form and manner as may be prescribed.

2. Late fee of filing return (Sec 47)

Following are the Revised Late fees with respect to delay in filing GST Returns

Details Act Maximum
1.GST Returns of Intra State Outward Supplies CGST ACT 2017

–Rs 25 per day of delay

SGST ACT/UTGST ACT —Rs 25 per day of delay

Total Rs 50 per day of delay

Rs 5,000
GST Return of Inter State Supplies As per IGST ACT— Rs 50 per day of delay Rs 5,000
Nil Return filers




Rs 10 per day of delay

Rs10 per day of delay

Rs 10 per day of delay

GST Annual Return



CGST Act 2017-Rs 100 per Day of Delay

SGST ACT/UTGST ACT-Rs 100 per day of Delay

Total Rs 200 per day of Delay

Maximum late fees of an amount calculated at 0.25% of the Turnover for the financial year

3.Penalties and Interest under GST

I.For late filing

II.For not filing

If you do not file any GST Returns then subsequent returns cannot be filed.

III.For the 21 offences with no intention of fraud or tax evasion

Minimum penalty-10,000

Maximum Penalty-10% of the tax unpaid

IV.For the 21 offences with the intention of fraud or tax evasion

Minimum penalty– 10,000

Maximum   penalty -100 %

Additional penalties-Jail Term up to 1 year or up to 3 year or up to 5 years based on the tax amount involved.

4. Interest on Delayed Payment of GST

As per Sec 50(1) of CGST Act 2017 , 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 time , 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.”

The interest shall be calculated from the day succeeding the day on which such tax was due to be paid – section 50(2) of CGST Act.

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April 2021