Doables for Late Fees and Interest Rate Charges on GST Returns

The GST portal automatically accounts for all GSTR-3B delays; no return is issued unless payment is made. Any waivers are refunded to the cash ledger and can be used again later by the taxpayer. 

Every person certified for GST must file their GST returns by the deadlines set by the government. If taxpayers fail to file their taxes on time, they must pay a late GST fee and interest when filing GST returns. Even if there is no activity, taxpayers must file NIL returns. Regular taxpayers must file this return until March 2023. You can file your return using the GST Portal. 

Did You Know? The interest rate is calculated at 18% per annum and is charged on the outstanding amount from the due date until the date of payment.

Late Fee for GST 3B

According to the GST Law, each registered person is liable for late fines if he fails to provide external or inward information in regular, bimonthly, or yearly reports. This is by the required due date. GST late fee per day is levied for each day the registered taxpayer fails to file returns beyond the due date.

GSTR 3B is a monthly return filed by businesses with the Goods and Services Tax Network (GSTN). It provides a summary of the preceding month’s total outbound supplies and total inbound supplies. This GST Return does not require the taxpayer to submit invoice-level information. Furthermore, before completing this report on the GST Portal, the registered dealer must pay tax based on the GST levied on outward goods and the Input Tax Credit claimed on inside supplies.

GSTR 3B Format

The following information and details are included in the GST Return:

• GSTIN, or taxpayer’s GST Identification Number
• The company’s official name
• The month the taxpayer files the return (the return period)
• Outward supplies, for example, sales
• Transactions of taxable goods and services
• Zero-rated sales like exports, SEZ supplies, and presumed exports
• Exempted and zero-rated sales
• Non-GST sales or transactions that the GST Act does not cover
• Inward supply details under reverse charge, Specifically, purchases on which the taxpayer must pay tax under the Reverse Charge Mechanism
• Interstate sales (sales done outside of the state) to unregistered individuals, hybrid dealers, and UIN holders
• Input tax credit is available for purchases and imports.
• Exempted, nil-rated, and non-GST inward supplies (purchases)

The following steps must be taken to file GSTR 3B

1. Prepare
2. Save
3. Submit
4. Pay taxes
5. File Return

If the taxpayer has already submitted the return, he cannot revise it. But, if the taxpayer has submitted but has not filed the return, he can reset it. Moreover, the taxpayer may only use the reset option once.

Also Read: Composition Scheme Under GST – All you Need to Know About GST Composition Scheme

Due Date for GSTR 3B

The GSTB 3R must be filed monthly by a taxpayer enrolled under the standard system on or before the 20th of the following month. On the other hand, due dates for taxpayers registered under the QRMP Scheme are on or before the 22nd or 24th of the succeeding month of the quarter. This depends on the state in which they are enrolled.

Here’s a short rundown of the GST payment dates for various sorts of taxpayers.

The deadline date for submitting GSTR-3B for the fiscal year 2022-23 is determined by several factors. Consequently, it is vital to examine all of those characteristics to determine the due date of reporting the GSTR-3B for any tax period, failing which may result in an unnecessary late fee for filing such a return.

The following are the criteria for establishing the due date.

• Annual Aggregate Turnover (AATO) for the previous year
• Periodicity of GST filing Return
• Taxpayer’s Geographical Location

For Registered Persons with an Average Turnover of the previous fiscal year  up to ₹ 5 crores, GSTR-3B can be filed quarterly. However, such a person may choose to submit GSTR-3B every month. Those taxpayers with an aggregate turnover of more than ₹5 crores  must register monthly.

Late Fee for GSTR 3B for March 2023

If the taxpayer fails to file GSTR 3B on or before the due date, they must pay a late charge of ₹100 (CGST ₹50 and SGST ₹50) for each day they are late. In the case of a Nil Return, the late cost is ₹40 (CGST ₹20 and SGST ₹20) each day. On the unpaid tax payment, interest at 18% per year is additionally charged.

• If no transactions occurred during the return period, the taxpayer should file a NIL Return to avoid late fees and penalties.
• The late charge is determined from the day after the due date to the date the return is filed.
• The current return late charge is due when the taxpayer submits the return for the subsequent return period.
• The taxpayer was previously required to pay a late charge of ₹200 (CGST ₹100 and SGST ₹100) each day of delay, which has now been reduced to ₹100.
• The late charge must be paid in cash, and the taxpayer cannot use the Input Tax Credit (ITC) available in the computerised credit ledger to pay the late fee.
• The late charge is calculated based on the days past the due date. The GST return in GSTR-3B was filed on January 23, 2023, three days after the specified due date of January 20, 2023. Late fines will be assessed for three days and must be paid in cash.

Calculation of Late Fees for GSTR-3B 

According to the GST Acts, the following late fees must be paid for intrastate supplies under both the CGST and SGST Acts:

Also Read: What is GST? Goods And Services Tax Explained With Benefits

Interest on Late Payment of GST

The interest is calculated on the GST liability, not the late fees. As a result, the amount of interest levied will be decided by the amount of GST, the interest rate, and the duration of the delay. GST-related interest is charged in the following circumstances that result in late payment:

• A late payment is paid after the due deadline for submitting GST Returns.
• When you claim an additional Input Credit (ITC).
• Your Output Tax obligation has been reduced.

Applicable Interest Rates are as under

Few Drawbacks using the GST portal

However, there are certain drawbacks to submitting using the GST portal listed below.

• Values cannot be copied and pasted.
• When values must be manually entered, the chances of mistakes increase.
• GST liability is determined only after the submission of the return.

Conclusion

Late fees are calculated automatically and reported in the next month’s GSTR-3B. In contrast, interest must be calculated manually and entered into GSTR-3B for payment. Late fines and interest must be paid individually for CGST, SGST, and IGST. GST fines cannot be paid using Input Tax Credits. A challan is necessary for both online and offline GST payments.

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