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
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27 Comments

  1. Jmo says:

    Gst registration is from Aug 2020. No business so filed nil gst R1 since Aug 2020 to Dec 2020. Didn’t file 3B due to non awareness. Paid 2850/- for Sept 2020, but Now showing heavy penalty for all months. Can’t pay bcoz nil business. Very demotivating for someone struggling to start something new. Very demotivating. Will have to surrender GST if there is no waiver for late fees.

  2. Meraj quadri says:

    Registered on Dec 2019, could not run business, due to no sales I was unaware, I get SMS from few days of Notice issuance, got checked by CA, he calculated my penalty around 65000/- by September 2020, gst 3B, late fine was waived off. Kindly help to stop this.

  3. SARFARAJ KHAN says:

    I haven’t file file GST return since April months. Now they asked me to pay Penalty 10000/- for each, month. But I dont have money to pay the penalty. My business has lost completely 0 returns on my business..

    Now what should I Do.?
    If anyone knows the solution..
    Please Info me
    this is my email id [email protected]

    Also if anybody facing same problem, kindly contact me, we will try take any other action. And if I know way I will infom you..

    1. Sonia Goyal says:

      Facing the same issue I got the gst November in june 2020 but I did nt strt the business from that time.

      I started the business from December,2020 and now I came to know that for the month of june to november I have to pay the penalty because of not filling the nil return l.

      I was totally unaware of this .

      Kindly tell me the solution to overcome this.

      Because I dont have this much money to pay the penalty

    2. Gaurav says:

      I also have a penalty of rupees 10,000 for not filing the final return. I have no transaction in my GST. Does anybody have a solution for this? I don’t have money right now.

  4. Ram says:

    As I have very little knowledge about tax, I paid all my returns through 3rd party, during this corona time, we paid gstr1 but that person was care less and had corona as well so he didn’t file gstr3, we received the order of cancellation only through mail and no sms to my mobile was sent, so I was unaware of the fact that my gst had been blocked. So what can be done sir? Kindly let me know.

  5. OT says:

    I haven’t file file GST return since April months. Now they asked me to pay Penalty 10000/- for each, month. But I dont have money to pay the penalty. My business has lost completely 0 returns on my business..

    Now what should I Do.?
    If anyone knows the solution..
    Please Info me

    1. Sagupta says:

      Same is the case with me. I am new to the business and miss to fill the GSTR3B. Now the fine is 11000, which I have no money to pay as I have no sales. Please suggest.

    2. Sagupta says:

      Same is the case with me. I am new to the business and miss to fill the GSTR3B. Now the fine is 11000, which I have no money to pay as I have no sales. Please suggest. Should I cancel my GST?

  6. Prashanth Thella says:

    I haven’t file file GST return since last 9 months. Now they asked me to pay Penalty 2400/- for each, month. But I dont have money to pey the penalty. My business has lost completely 0 returns on my business..

    Now what should I Do.?
    If anyone knows the solution..
    Please Info me via my mail [email protected].

    Also if anybody facing same problem, kindly contact me, we will try take any other action. And if I know way I will infom you..

  7. JUGAL KISHORE VYAS says:

    I NOT SUBMITTED ANY GST RETURNS AFTER TAKEN GST NO ON 01.10.2019 TO TILL DATE . WHAT THE LATE FEES PROCESS . IF I WANT THE SUBMITEED GST RETURNS WITH ALL MANNERS . KINDLY GUIDE US .

    1. Soumo Saha says:

      I NOT SUBMITTED ANY GST RETURNS AFTER TAKEN GST NO ON 01.10.2019 TO TILL DATE . WHAT THE LATE FEES PROCESS . IF I WANT THE SUBMITEED GST RETURNS WITH ALL MANNERS . KINDLY GUIDE US .

    2. Shubham says:

      Penalty for not filing any return on time is Rs.20 per day in case of nil return and Rs.50 in other case.For any GST & ITR related query please msg me directly on mail.Thanks

  8. Yuvaraj R says:

    Hi Reshma,

    After Corona my business is dull , sales happening is used only for daily salary and personal issues, I have not filled return from June,
    Now I try to ruturn GST for June
    System shows late fee June to till date, ok I agree I thought it’s a one time settlement,. After June return, Then again it’s asking for late fee for July to till,
    Then
    Aug to till date
    SEP to till date
    Oct to till date
    Nov to till date,

    This is very bad system, hurting people mind and heart,
    When we don’t have cash to file return, we taking time to ready it, but tha cash I have to return (full up to this month’s) is only 50% of late fees, what I do for remaining 50% late fee, then return payments for June July aug SEP Oct Nov and then finally September , I’m fully hurted, this is very bad like Hitler’s Sarkar,
    And still people’s are suffering from Corona here, and u providing late fees freely.. pls take necessary action,

    And sry if any grammatical mistakes..

  9. Asif says:

    I have paid late fee online. The amount has been deducted but it is not updated in the GST portal. I still see it is being notified me to fill late liability fees. can someone help why?

  10. PAULRAJ says:

    I have arrived and paid all tax due from April 2018 to july 2020 on 23.09.2020 that is before 30.09.2020 as per the notification of 52/2020 ( late fee notification ).The circle office cancelled my registration on 17.09.2020. Because of this i am not able to file my returns even though i have paid tax due amount as per government notification. Is it possible to file my returns GSTR 3B , GSTR 1 from April 2018 to July 2020 and enjoy the benefits of late fee announced by the government. Please guide me and if possible please take up this matter to the honorable Finance Minister. I am very small tiny msme and our annual turnover is less than 20.00 lakh.Thanks

  11. MAHENDRA MONDAL says:

    I have already filed GSTR_1 for 2019-20 in quarterly basis but when I want to file 3B each month form Apr.19 to Mar. 20 it shows late fees Rs. 10,000/- per month please help what will do ??

  12. Venkatesh Vadari says:

    I am an HR professional. I have filed my NIL GSTR3B return for September,2020 On 25/10/2020. It is not allowing me to file GSTR3B return for October,2020. Is there any late fee?
    Please help

    1. RESHMA says:

      GSTR 3B HAVE LATE FEE NOT GSTR 1,SO YOU HAVE TO PAY THE 10000 LATE FEE FOR EACH MONTH TO FILE GSTR 3B.
      WHEN YOU HAVE NIL RATED SUPPLY AND FILED RETURN AFTER DUE DATE YOU HAVE TO PAY LATE FEE FROM DUE DATE ie. 20per day

    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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