Answer By law4u team
The late fee for non-filing of GST returns in India is imposed to encourage timely compliance with the Goods and Services Tax (GST) provisions. The late fee is determined based on the GST return type and the number of days of delay. Here's a breakdown of the late fee for non-filing of GST returns: 1. Late Fee for GSTR-3B (Monthly or Quarterly Returns): Rs. 50 per day for late filing of returns for regular taxpayers (Rs. 20 per day for Nil return filers). For each day of delay, this fee is calculated separately for the CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax), which means the total late fee will be Rs. 100 per day (Rs. 50 for CGST and Rs. 50 for SGST). Maximum late fee: The maximum late fee for each return is capped at Rs. 5,000 (i.e., Rs. 2,500 each for CGST and SGST). 2. Late Fee for GSTR-1 (Sales Return): Rs. 200 per day (Rs. 100 each for CGST and SGST) is charged for late filing of GSTR-1. Maximum late fee: The maximum late fee for GSTR-1 is capped at Rs. 5,000 (Rs. 2,500 each for CGST and SGST). 3. Late Fee for GSTR-4 (Quarterly Returns for Composition Scheme): The late fee for GSTR-4 (filed by taxpayers under the Composition Scheme) is Rs. 50 per day (Rs. 25 each for CGST and SGST). Maximum late fee: The maximum late fee for GSTR-4 is capped at Rs. 2,000 (Rs. 1,000 each for CGST and SGST). 4. Late Fee for GSTR-9 (Annual Return): The late fee for non-filing of GSTR-9 (annual return) is Rs. 200 per day (Rs. 100 each for CGST and SGST). Maximum late fee: The maximum late fee for GSTR-9 is capped at Rs. 5,000 (Rs. 2,500 each for CGST and SGST). 5. Late Fee for GSTR-10 (Final Return): The late fee for GSTR-10 (final return) is Rs. 200 per day (Rs. 100 each for CGST and SGST). Maximum late fee: The maximum late fee for GSTR-10 is capped at Rs. 5,000 (Rs. 2,500 each for CGST and SGST). 6. Waiver or Reduction of Late Fee: The late fee may be waived or reduced in certain cases, such as for taxpayers who have no tax liability or where the delay is due to valid reasons like system errors or issues with GST filing portals. The GST Council may issue periodic notifications to relax or waive the late fee under specific circumstances, such as for small taxpayers or for certain periods where a taxpayer faces genuine difficulties. Conclusion: The late fee for non-filing of GST returns is calculated on a daily basis, and the amount varies depending on the type of return. The maximum fee is generally capped at Rs. 5,000 for regular returns (GSTR-3B, GSTR-1, etc.). It's advisable to file GST returns on time to avoid these penalties and maintain compliance with the GST regime.
