Late Fee for GST Returns’ Non-filers & Interest with Recent Amendments

Discipline matters a lot in tax-related issues also. If you are late you have to bear the cost in the form of a penalty. And all possible discrepancies and escalations along with consequent fines are mentioned in the various provisions section 47 and section 50 of the CGST Act 2017.

However, recently, the government has relaxed the penalty of not paying taxes on time but that too to a certain extent. Consequently, the government has made certain amendments in section 47 of the CGST Act, 2017 so as to benefit the taxpayer by reducing the late fee. Here are the various amendments that have been made in the CGST Act that are related to late fees and interest.

Late Fee for Not Filing the GST Returns on Time

Section 47 of the CGST Act 2017 contains the provisions related to the imposing of late fees for a registered person who does not file the GST returns Get to know the online procedure of filing GST return in India. Also, we provide each and every GST form according to the taxpayers’ category. Read more within a specified period of time. Below mentioned are the details related to the imposition of the late fee.

The Late fee imposed in case of not filing details of the Inward or the Outward Supply, the monthly return or Final return	Late Fee for not filing the Annual Return
Rs 100 imposed for every day for the time when failed to file GST return persists that is subject to a maximum limit of Rs 5000	If the yearly return is not furnished then Rs 100 is to be payable, but towards the maximum amount that is computed at the turnover in the union territory or state in which the business is registered
Through the Notification bearing number 64/2017 and that is dated November 15, 2017, The Government of India has reduced the figure of the late fee for the filing the Form GSTR-3B for the month of October, 2017 afterwards from Rs 100 to Rs25 per day and in particular case of filing zero return, the fine is from Rs 100 to Rs 10 per day Via notification bearing number 04/2018 that is on January 23, 2018, has lessens the sum of late fee for furnishing the form GSTR-1 from Rs 100 per day to Rs 25 per day and late fee in the absence of the outward supply shall be lessened from Rs 100 per day to Rs 10 per day

Latest GST Amendment Under Section 47 of CGST Act, 2017

All the latest amendment in Section 47 of the CGST Act, 2017 by GST Notification Central Tax Number 19/2021 and Number 20/2021, dated 1st June, 2021 are as under:

Notification bearing number 19/2021 dated June 1, 2021

Late fee that is payable as per section 47 of the CGST Act for the tax period from June 2021 outwards or the quarter ending June 2021 onwards in case the details of the outward supplies in the form GSTR-3B by the due date Get to know details on GST return 3B form along with the online return filing procedure. Also, we mentioned GSTR-3B due dates, penalty & general queries. Read more.

Class of registered persons	Amount
Registered persons who have a nil outward supply in the tax period	250
Those registered persons who are having an aggregate turnover upto Rs 1.5 crore in the immediate preceding year	1,000
Those registered persons that have an aggregate turnover of greater than Rs 1.5 crores and upto Rs 5 crores in the immediate preceding financial year	2,500
For those taxpayers who had an total turnover of greater than Rs 5 crore, the late fee can be capped to the maximum amount of Rs 5000 as per section 47 that is same as was prevalent in past
The late fee for not submitting FORM GSTR 3 B for the period of tax from July 2017 to April 2021 has been waived as follows:
1. Late fee to be set to a maximum amount of Rs250/- for the taxpayers who did not have any of the tax liability for the aforesaid tax period
2. For other taxpayers maximum fee is Rs 500
The decreased rate of the late fee shall apply if GSTR-3B returns for the said tax periods are submitted between June 1, 2021 to August 31, 2021

Notification bearing number 20/2021 and dated June 1, 2021

The Penalty that is imposed for the fee which is payable as per section 47 of the CGST Act from the month of June 2021 onwards or a quarter that ends in June 2021 onwards associated to the Outward supplies that is mentioned in the FORM GSTR-1
Category of Registered Person	Amount of Penalty
The individual enrolled who did not witness any outward supply in the taxable period	Rs250
Registered Persons who has the turnover of Rs 1.5 cr in the immediate preceding FY	Rs1000
Registered Persons who possess the turnover of more than Rs 1.5 crores but up to the amount of Rs 5 crores in the immediate preceding financial year	Rs 2,500
Under section 47 of the CGST Act 2017, the assessee who poses the turnover of more than Rs 5 cr in the immediate preceding year, the late fee held with the maximum amount of Rs 5,000

Extract of GST Section 47 of CGST Act, 2017

Levy of late fee as per Section 47 of the CGST Act

• Any registered person who doesn’t or is not able to provide the details of the inward or outward supplies as per section 37, section 38, section 39 or section 45 shall be subject to the maximum amount of Rs 5,000.
• Any registered person who doesn’t or is not able to provide the details as per section 44 shall be subject to late fees of Rs100 rupees of an amount that is calculated at the quarter percent of the turnover of his business in the state or the Union Territory.
• Interest Chargeable on delayed payment of GST Goods and Service Tax is an ambitious tax regime applicable from 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 20th of next month while the GST payment due date . Read more

Current Interest Rate on Late GST Payment

As per section 50 of the CGST Act, 2017, every person who is liable to pay the tax does not pay the tax as per the provisions of the said act or Claims in excess of input tax credit or The Excess reduction in the output tax liability
Shall have to pay interest also along with GST. Below-mentioned are the interest rates:

“The person fails to pay the tax he is liable to or any part of the liable tax within the due period”	“18% of interest for the tenure of unpaid period”
“A taxable person who makes excess/undue claim of the input tax credit or excess reduction in an output tax liability”	“24% on undue/excess claim or undue/excess reduction”

Central Tax GST Notification No. 18/2021

Notification No. 18/2021 – Central Tax, dated 1st June 2021

“Taxpayers having an aggregate turnover of more than rupees 5 Crores in the preceding financial year”
March, 2021, April, 2021, May, 2021″	9% for the first 15 days from the due date and 18% thereafter
“Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year”
March 2021	“Nil for the first 15 days from the due date, 9% for the next 45 days, and 18% thereafter”
April 2021	“Nil for the first 15 days from the due date, 9% for the next 30 days, and 18% thereafter”
“May 2021”	“Nil for the first 15 days from the due date, 9% for the next 15 days, and 18% thereafter”
“Taxpayers who are liable to furnish the return as specified under sub-section (2) of section 39 (For Composition Levy under section 10 of CGST Act)”
“Quarter ending March, 2021”	“Nil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafter”

CGST Act, 2017 Section 50 Interest on Late Payment

Each person who has been liable to pay the tax as per the provisions of this act or rules made thereafter and thereunder but fails or is not able to pay the tax or any of the parts thereof to the government within the period allocated shall pay for the period due after expiry of date at the rate not exceeding 18%.

In case of input tax credit A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. Read more or excess reduction in the output tax liability, the rate applicable shall not be more than 24%