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Due Dates of GST Payment with Penalty Charges on Late Payment

GST Payment Due Dates

Goods and Service Tax is an ambitious tax regime applicable from the 1st of July 2017 made a number of indirect taxes subsumed into it. The government has revealed the due dates for the payment of GST. The GST payment due date for general taxpayers is the 20th of next month while the GST payment due date for composition scheme dealers is the 18th of next quarter. As per Budget 2022, the due date had been revised from the 20th of next month to the 13th of next month in the case of Non-Resident taxpayers.

Latest Update In GST Payment

GST Payment Due Dates for Both General & Composition Scheme Taxpayers

Type of TaxpayerGST Payment Due Dates
Regular20th Day of the Next Month
Composition18th Day of the Next Month of Quarter
Non-Resident13th Day of the Next Month
Input Service Distributor13th Day of the Next Month
TDS Deductor10th Day of the Next Month
TCS Collector10th Day of the Next Month

Recommended: Due Dates of GST for Return Filing for Taxpayers in India

Interest on Late Payment of GST

According to the GST Penalty regulations, interest will be charged at the rate of 18 percent per annum from the taxpayers who fail to pay their taxes on time. The interest will be levied for the days after the due date.

Check the example below to understand it better: Suppose your tax liability is Rs. 2,000 and you have not paid tax on time for a given month. Now, if you pay tax after one day from the due date, your interest will be calculated as 2000*18/100*1/365 = Rs. 0.98 Per day. If you delay more than that, you’ll have to pay an interest of the same amount per day. Check out the document attached below (chapter 10, point 50) for more details.

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    Penalty on Missing GST Due Date

    In such cases, where taxpayers do not file their returns within specified due dates mentioned, he is obliged to pay a late fee of Rs. 50/day i.e. Rs. 25 per day in each case of CGST and SGST (in case of any tax liability) and Rs. 20/day i.e. Rs. 10/- day in each CGST and SGST (in case of Nil tax liability) subject to a maximum of Rs. 5000/-, from the given due date to the actual date when the returns are finally filed.

    Rules and Regulations of GST Payment for Taxpayers

    Some of the Other Rules of the Challan are:

    Important Things of GST Payment for Freelancers

    Beneath the present GST law any individual who is providing the services that comes under the taxes should enroll in the state as a hub of providing the service; if the average turnover exceeds 20 lakh for the fiscal year ( ₹10 lakh in some states like those in the North East), and that shall be liable to apply for freelancers upon the mentioned exceeding limit. 18% GST shall be applied to the freelancer which is same as applicable for the other service provider relied on the kind of service they furnsih.

    Provisions for Electronic Credit Ledger

    The amount should be credited to the Electronic credit ledger which is filed by the person in his Returns. While the amount stated in the electronic credit ledger can be used for tax payments only. Any differences in the electronic credit ledger must be brought to the notice of an officer through form GST PMT-04.

    According to the following order, a taxpayer must discharge his tax duties:

    GST Payment Process By An Unregistered Person on Portal

    GSTN provides a complete GST payment procedure by an unregistered person by generating a user ID on the official government portal. Here, we disclosed step by step guide.

    How to Generate a User ID on the  Portal?

    Process of GST Payment

    https://www.gst.gov.in/ > Payment > Create Challan Enter the ID generated above and make payment

    GST Payment Verification Procedure

    https://www.gst.gov.in/ > Payment > Track Payment Status Enter GSTIN/Other Id generated above along with CPIN and click on track status.

    General Queries on GST Payment

    Q.1 – What do you mean by the GST late fee and interest rate?

    In context to the late fees, the non-payment of the late payment poses an interest. The total penalty burden surges through 18% per year as interest. An assessee is subjected to the same burden during the complete time of furnishing the taxes. The fees and the interest gets computed from the last date to the date of filing.

    Q.2 – What shall be the result if the assessee does not furnish the GST Return?

    The assessee who holds the GST enrolled number is required to furnish the GST return. If someone loses to furnish the GST return then a late fee will get imposed on the daily grounds. One shall not be enabled to furnish the ITR for the subsequent month if he or she does not or fails to furnish the GSTR for the current month. Apart from all these compliances an amount of Rs 50 shall be imposed every day as a late fee. Rs 5000 will be the highest amount that could be obtained as a late fee if the assessee losses to furnish his GST return.

    Q.3 – As a taxpayer I do not have any amount to file as a GST return, Could I furnish my GSTR?

    Yes, one is enabled to furnish the GST return. The filing is adjusted as a NIL return. There might be two cases to furnish the GSTR with no tax. In the first case, there shall have no buyings and no sale in that specific year hence no transaction is there. Thus one can furnish the NIL transaction return. In the other case, the goods and services have been purchased by you but no sale has been performed. Hence you have furnished the GST during the purchase thus you need to furnish the GSTR-3B and avail of the ITC.

    Q.4 – What is the method to compute the late fees for the GST payment?

    Rs 100 shall be imposed by CGST and Rs 100 by SGST post to the last date of furnishing of the GST return. Hence a total of Rs 200 per day shall be levied through the tax council against the taxpayer. For instance, if the assessee losses to furnish the return due on the date 15th August and do not furnish the same till 9th September then the late fees shall be computed as:

    • 25 days * 200 = INR 5000 of late fees

    Q.5 – Is there any interest imposed on the late fees with respect to the payment of GSTR?

    GST penalty laws verified that each assessee who losses the last date to furnish the taxes needs to file the interest with 18% per annum as late fees. Hence if the individual due for the GST return is Rs 2500 and he or she files it after 3 days of the last date then the interest need to pay as a late fee on the tax shall be computed as:

    • 2500*18/100*3/365 = Rs. 3.7 of interest on late fees

    The interest amount gets computed towards the duration between the actual last date of paying the tax and the date on which the return was furnished.

    Q.6 – Is it important to furnish the GST as a NIL transaction?

    If you own a GST registration number then truly it is essential for a taxpayer that he furnish the GSTR. If you pose no buyings or sale transaction then you are required to furnish the NIL GSTR. if you do not furnish the GST return, then late fees shall get imposed. Beneath the CGST act Rs 25 will be imposed as well as Rs 25 shall get charged under the SGST act on a per-day basis. On the same penalty amount, 18% interest per annum will be imposed.

    Q.7 – Can late fees on GST be avoided?

    In some of the cases, GST late fees shall get avoided but if it does not then it should be furnished prior to the furnishing of the taxes

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