written by khatabook | June 25, 2021

GST Return Late Fee & Interest Calculator Online

The GST return forms have been simplified for easy filing across all categories. Now only one return, namely GST RET-1 with two annexures GST ANX-2 and GST ANX-1, needs to be filed every month within the due dates. If the tax is unpaid within the due date, then late fees for GSTR 3b and interest on it become applicable.  However, a major issue for taxpayers is calculating the late fee and interest on late payment of GST when filing the GSTR3B. 

What Is Late Fee And The Interest Payable Under The GST Act?

The GST returns filed later than the due date attracts a late fee on a per-day basis.  Interest on GST late payment is also applicable under the GST act. All registered taxpayers must pay the Interest for excess claims under the ITC- Input Tax Credit, otherwise, the excess output tax liability stands reduced by the amount. The interest on late payment of GST calculated by the GST penalty calculator is laid out in the Act and is as follows:

Particulars

Interest

Tax returns filed after the due date

18%

Excess reduction in output tax liability or ITC claimed 

24%

 

If GST returns are not filed within the prescribed due dates, a late fee is charged every day after the due date. The late fee amount will depend upon the total number of days delayed and is calculated from the due date. Even filing of NIL returns after the due date attracts a late fee under GST. 

Late Fee:

The late fee chart used by the GSTR 3B late fee calculator for the late filing of GSTR-3B is shown below.

Particulars of late fee

Normal Return Filers

Nil Return Filers

UTGST/SGST Act 

Rs 25

Rs 10

CGST Act

Rs 25

Rs 10

IGST Act

Rs 50

Rs 20

 

Also Read: Latest GST News, Information, Notifications & Announcements

Late Fees Applicable

GSTR 3B Late Fees:

The GSTR 3B late fee is required to be paid in full within the next month as you cannot file the next returns until such payment of late fees of the previous month has been made.

  • The GSTR 3B late fee is Rs. 20/day with a split of Rs 10/- each for SGST and CGST to file NIL returns.
  • For other cases, it is Rs. 50/day with a split of Rs 25/- each under SGST and CGST.
  • The maximum penalty amount is capped at Rs. 10,000 with a split of Rs. 5,000 for SGST and CGST on every such late return.

GSTR-1 Late Fees:

The late fee for the filing of GSTR-1 is Rs. 200/day with a split of Rs. 100 for SGST and CGST. The government is currently not collecting late fees on the late filing of GSTR-1. Most online GST late payment interest calculators do not consider the GSTR-1 late fees.

GSTR-9A and GSTR-9 Late Fees:

The late fee that applies to the late filing of the GSTR-9A and GSTR-9 forms are Rs. 200/day with a split of Rs. 100 for SGST and CGST. The maximum fee collectable is 0.50% of the turnover with a division of 0.25% for SGST and CGST.

GSTR-10 Late Fees:

Late fees are applicable for the late filing of the GSTR-10 form are Rs. 200/day with a split of Rs. 100 for SGST and CGST. The maximum penalty amount does not have an upper limit and must be filed before filing the next return.

How to calculate GST interest?

Interest on GST liability is covered under Section 50 of CGST Act, 2017.  

  • Every taxpayer who fails to pay the tax within the period, GST interest rate not exceeding eighteen per cent per annum for the period for which the tax whole or part of it remains unpaid shall be charged.
  • The interest as per Section 50(1) shall be calculated from the day after the due date till the date it is paid.

Note that Section 50 has not prescribed any amount on which the interest is to be made applicable.

How to calculate GST late fee?

Use any GST late fee calculator online with the following steps to calculate the interest and late fee:

  1. State name: Select from the drop-down box and enter the appropriate State name from the list of States.
  2. Turnover category: You have to select the previous financial year’s Turnover category or the Aggregate Business Turnover at the PAN level.
  3. Tax period: Select the return period for calculating the late fee and interest due to the delay in filing and making payment due for the late return.
  4. Return filed on: Enter the date on which the return is being filed.
  5. Tax Liability: Enter the Outward supplies tax liability and the sales or output tax liability as per business records.
  6. ITC Available: Enter the purchases or ITC available as per business records.
  7. Cash to be paid: The net tax liability is automatically calculated and displayed.
  8. Submit: Click and get your tax liability.

Using the GST interest calculator

Consider the example of a dealer in Karnataka with a turnover slab of up to 5 crores filing the February 2020 returns on the 14th of May 2020. Let us assume the dashboard figures as applicable for IGST, CGST, SGST and the available Cess at Rs 200, CGST and SGST of Rs 600/- each and IGST as Rs 7,000/-. You will have to enter the details either from the dropdown box or by filling in the details in the GST interest calculator online.

  1. Fill in the State name as Karnataka manually or choose from dropbox.
  2. Click on the Turnover category tab of TO > Rs.5cr
  3. Enter the Tax period by clicking on or entering Feb 2020
  4. Enter the date of Return date as 14-05-2020
  5. The Tax Liability is under IGST -Rs.10000, SGST -Rs.2500,  CGST - Rs.2500, Cess - Rs.1000.
  6. Under the ITC Available, you will see the fields IGST -Rs.7000, CGST - Rs.600, SGST -Rs.600, Cess - Rs.200
  7. The fields Cash to be paid are automatically computed and display as IGST -Rs.3000, SGST - Rs.1900, CGST -Rs.1900, Cess - Rs.800
  8. Click Submit to get your tax liability.
  9. The Tax Liability displays as Rs.8900(inclusive of IGST, SGST, CGST and Cess).

Relaxation of Due Dates For Feb 2020 Return 

For the example used above, the Original date for filing was 20th Mar 2020. The COVID-19 related relaxed-date entitled to 0% per annum interest is until 4th Apr 2020, relaxed date entitled to 9% per annum is until 23rd Jun 2020. The GST late fees calculator uses the Regular Interest Rate @18% per annum, which is applicable after 24-06-2020. But the date of filing of returns is 15-05-2020. This means that the return will fall under the category of Relaxed Date with 9% per annum interest rates.

Also Read: How To Calculate Aggregate Turnover For GST Registration

The Calculation For The Number Of Late Days

1. When the Turnover is more than Rs. 1.5 Crores and less than Rs. 5 Crores, use the formula 

The number of late days = Date of filing the return (minus) the Due date of the returns.

2. If the Turnover exceeds Rs. 5 Crores, then use the formula

The number of delay days = The difference between filing the return date and the extended date due for filing the returns.

Final Calculation Of Late Days, Late Fee And Interest Amount

For the example mentioned above, the return was due on the 4th of April 2020. The number of late days here is the difference between 15th May 2020 and 4th Apr 2020 and equals 41 days. The interest rate is 9 per cent, and the tax liability is Rs. 8900. 

Hence GST late payment interest is calculated as Rs. 8900 multiplied by the interest at 0.09 per day and worked out by multiplying 41 days and dividing by 365 days and is equal to Rs. 90.

If this is filed before the 24th of June 2020 as per the relaxed norms, then the interest liability is zero as interest has been waived.

Bottom Line

We have just studied the late fees applicable under GST laws and how using the calculator can help you calculate the late fees applicable. Looking for a great GST calculator? Try the KhataBook calculator for GST filing. Happy GST filing!

FAQs:

Who is liable to pay the GST interest?

Every taxpayer is liable under the provisions to pay tax under the GST Act. When they fail to pay the tax within the due date, as due to the Government, interest is levied under S50 (1) on the entire or unpaid part of the tax liability due.

At what rate is GST interest applicable?

The interest rates applicable do not exceed 18%, and as per the government- notifications is based on the GST Council recommendations. (Refer notified interest rate vide Central Tax dated 28/06/2017 and S[50(1)] Notification No. 13/2017 is 18%). The interest due can also be calculated using an online Excel utility GST interest calculator.

What is the maximum amount applicable as interest on GST amounts?

This amount is not specified under GST Act Section 50(1) or the Finance Act 1994 Section 75.

When is interest applicable?

Under GST Act S50 (1), interest is to be paid for the period when the tax or part of the tax remains unpaid. 

When is the interest to be paid?

This is not mentioned in S 50(1). But, in rule 61(3), it is stated that every registered taxpayer furnishing the return under S 50 sub-rule (1) is subject to the provisions of S 49, which states that the taxpayer should discharge his liability towards interest, tax, fees, penalty, or any other payable amount under the GST Act/ provisions by debiting the electronic credit or cash ledger and include such details in the return’s Part B when filing FORM GSTR-3.

Is notice required for late fee payments?

S 50 (1) specifies it is the duty of the taxpayer to pay the fees, tax and interest on his own. Hence no notice is required to be issued, and one can use a GST late fee calculator to compute the same.

What is a NIL return?

A NIL return is one in which there are no sales. Hence, it is filed as a NIL sales return. 

Can GST late fees be waived?

In the case of some specific scenarios, the GST Late fees can be reduced and not waived. It must be paid to file the next return.

How is the GSTR-3B late fees calculated?

The GSTR 3B late fees are applicable at the rate of Rs. 50/day multiplied by the number of days of the default period. For a NIL return or when the sales in a month are zero or NIL, the applicable late fee is calculated at Rs. 20/day for the period of default.

When are the GSTR-1 late fees waived off?

The late fees on GSTR-1 were waived off for the period between July 2017 to November 2019 only if filed between the 19th of December 2019 and the 17th of January 2020.

Is GSTR-3B late fees waived off for July 2017 to Feb 2019 late returns?

A late return of GSTR-3B for July 2017 up to Feb 2019 is levied late fees from 1st April 2019 onwards

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