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Penalty for Late Filing of GST Return

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Penalty for Late Filing of GST Return

GST return filing is mandatory for all persons having GST registration irrespective of turnover or profit. Hence, taxpayers even with no business activity or turnover in a month but registered with GST should file GST returns. Regular taxpayers shall file monthly GST returns and dealers registered under Composition Scheme shall file quarterly GST returns. However, any non-resident taxable persons shall file one return every month. In this article, we look at the penalty for late filing of GST return.

Types of GSTR Forms & its Due Dates

There are different types of GSTR Forms, such as GSTR-1 and GSTR-3B, and each has specific purposes and date of filing. The following table lists all the GSTR forms, descriptions, due dates, and applicability,

GSTR Form Description Due Date Applicability
GSTR-1 Outward supplies of goods & services
  • Monthly, 11th of next month (Turnover > Rs. 5 Crore or not opted into QRMP scheme)
  • Quarterly, 13th of month following quarter (Opted into QRMP scheme)
All registered taxpayers (except composition)
GSTR-3B Monthly self-declaration of outward supplies, ITC claimed, tax liability & taxes paid
  • Monthly, 20th of next month (Turnover > Rs. 5 Crore or opted out of QRMP)
  • Quarterly, 22nd/24th of the month following quarter (Opted into QRMP scheme, based on state category)
All registered taxpayers
GSTR-4 Annual return for composition taxpayers 30th April of the following year Composition taxpayers (turnover up to Rs. 1.5 crore for goods, Rs. 50 lakh for services)
GSTR-5 Monthly return for non-resident foreign taxpayers 20th of each month Non-resident foreign taxpayers registered under GST
GSTR-5A Summary return for outward supplies and tax by OIDAR providers 20th of every month OIDAR service providers
GSTR-6 Monthly Return for Input Service Distributors (ISD) 13th of every month Input Service Distributors
GSTR-7 Monthly return for TDS (Tax Deducted at Source) deductors 10th of every month Persons required to deduct TDS under GST
GSTR-8 Monthly return for e-commerce operators collecting TCS (Tax Collected at Source) 10th of every month E-commerce operators registered under GST
GSTR-9 Annual return for all registered taxpayers (except exceptions) 31st December of following year All registered taxpayers (except composition, casual taxable, ISD, non-resident taxable, TDS payers)
GSTR-9C Annual self-certified reconciliation statement (turnover > Rs. 5 Crore) Same as GSTR-9 (31st December of following year) Taxpayers with turnover exceeding Rs. 5 Crore
GSTR-10 Final return for cancelled or surrendered registration Within 3 months of cancellation/order Taxpayers whose registration is cancelled/surrendered
GSTR-11 Refund claim return for UIN holders (foreign diplomatic missions/embassies) Not specified UIN holders seeking GST refund

Penalty for late filing of GST return

Due to the technical issues and frequent amendment of GST clauses, the CBIC has reduced the penalty amount as follows:

  • Intra-state supplies – Monthly Filing: CGST of Rs.25 per day + SGST of Rs.25 per day, totaling Rs.50 per day
  • Inter-state supplies – Monthly Filing: IGST of Rs.50 per day

NIL return

  • Intra-state supplies – Monthly Filing: CGST of Rs.10 per day + SGST of Rs.10 per day, totaling Rs.20 per day
  • Inter-state supplies – Monthly Filing: IGST of Rs.20 per day

Note: The maximum late fees cannot exceed Rs.5,000.

Interest Rate on GSTR

Interest has to be paid by GST-registered member if they fall under below category:

  • Delayed GST payment i.e. paying GST after the due date
  • Claiming excess Input Tax Credit
  • Reducing excess Output Tax Liability

GST has to be paid at the time of filing GSTR-3B every month and GSTR-4 in every quarter.

The interest amount is separately charged for the defaults and GST is not payable on the interest amount. The Interest rates are as follows:

  • 18% if the tax paid after due date
  • 28% if excess ITC Claimed or excess reduction in Output Tax

If GST return for a month is not filed, then the GST return for the next month cannot be filed by the taxpayer. Further, if a taxpayer fails to file GSTR-1 return on the 10th, then the taxpayer would not be able to file GSTR-2 return on the 15th. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.