What is Late fee Under GST ?

When a registered person delays filing his regular GST return before due dates, he will be liable to pay late fee under Section 47 (2) of CGST Act, 2017. The amount of late fee payable depends on the type of return to filed, no of days of delay and due date for filing such return. 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. However, late fee is applicable on delayed filing of GSTR1 also which may not be getting populated in the return but payable during assessments or on the basis of notice issued by authority.

Financial concept about Late Fee with phrase on the page

Late fee applicable as on date under GST:

Return Name of the Act Late fees for every day of delay Remarks
GSTR9/10 CGST 100 The GST law has fixed a maximum late fees of Rs 5,000. 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.
SGST 100
IGST 200
Other than GSTR9 /10 CGST 50 The GST law has fixed a maximum late fees of Rs 10,000. This means that in any case, the maximum late fees that can be charged by the Government is Rs 10,000  each return being filed under each Act.
SGST 50
IGST 100
Other than GSTR9/10 (Nil Return) CGST 10 The GST law has fixed a maximum late fees of Rs 10,000. This means that in any case, the maximum late fees that can be charged by the Government is Rs 10,000  each return being filed under each Act.
SGST 10
IGST 20

Scheme for reduction of Late fee under GST:

In a major relief to the taxpayers, the government has capped that maximum late fee on GSTR-3B returns at Rs 500. CBIC said that the government has decided to cap the maximum late fee for filing GSTR-3B returns for the tax period of July 2017 to July 2020, given that such returns are filed before 30 September 2020. Earlier, in the 40th GST Council meet, Finance Minister Nirmala Sitharaman had announced a cap of Rs 500 to be imposed as the late fee for filing GSTR-3B returns for the period of July 2017 to January 2020. Also, it was announced that there will be zero late fees for those with no tax liability.

  • Such relief is available only for Form GSTR3B.
  • No Late fee in case of Nil return.
  • Scheme applies to all returns pertaining to the period July 2017 to July 2020 when filed between 1st July, 2020 and 30th September, 2020.
  • Maximum late fee is capped at Rs. 500 per return if there is tax liability.

How can I reduce my unnecessary late fee liability under GST?

1. Always look out for any notifications currently in order during and file all the pending returns immediately (one such notification is the current one which caps the maximum penalty per return to Rs.500 ).

2. In case of any business which was registered but failed to file any return since the date of registration it is always advisable to apply for cancellation registration since effective date of registration if no sales or purchases are made to avoid late fee. Such businesses need to file their GSTR10(Final Return) and can apply for new registration in case they want to start the business now.

3. In case of any business which failed to file returns for 6 continuous months after from a later date than effective date of registration (Which means they have filed returns post registration but did not file the return for a later date as there are no sales or purchases). In such cases If your effective date of cancellation is any other date or current date then you can visit the office of Assessing Officer and ask him to cancel your GST from registration date for saving late fees. However, if you have made any GST sales or purchase then you should first file the returns till the month in which you have last GST sales or purchase and then ask the Assessing Officer to cancel your GSTIN from that month so save GST late fee penalty.

4. Always keep checking the status of filing, in case the return filing is handled by a third party or consultant. This can be checked from the GSTIN portal itself using the mentioned path . Path gst.gov.in >>> Search Tax payer >>> Search by GSTIN >>> input your GSTIN >>> click on filing table. You can see filing dates for last 12 returns filed.

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Qualification: CA in Job / Business
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Location: Andhra Pradesh, IN
Member Since: 21 Sep 2020 | Total Posts: 2

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2 Comments

    1. lokesh_raja says:

      As per the IGST Act, for inter-state supplies, the late fee is approximately equal to the sum of fees prescribed under both CGST and SGST Act.

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