A regular GST taxpayer has to file GSTR 3B return. GSTR 3B has the details of outward Supplies made and also information of Input Tax Credit. GSTR 3B can be filed between 20 to 24th days of the next month that may be extended by the government. Let us look at the charges levied if GSTR 3B is filed late.
How to Calculate Late Fee for GSTR 3B
As Per Section 47 of the CGST Act, 2017- Starting Immediately After the Due Date
The late fee for GSTR-3B is Rs. 20 (CGST-Rs 10 and SGST-Rs. 10 ) per day in case of NIL tax liability and capped at Rs 500. In case of tax liability if is Rs. 50 (CGST-Rs 25 and SGST-Rs 25) per day capped at different Annual Aggregate Turnover limits. Let us explain in detail below.
- For those with nil tax liability, the late fee is Rs 20 per day and capped at Rs 500.
- For those having tax liability with AATO (Annual Aggregate Turnover) i.e., yearly sales of up to Rs 1.5 crore, the late fee is Rs 50 per day and capped at Rs 2000.
- For those having tax liability with AATO (Annual Aggregate Turnover) i.e., yearly sales between Rs 1.5 crore to Rs 5 crore, the late fee is Rs 50 per day and capped at Rs 5000.
- For those having tax liability with AATO (Annual Aggregate Turnover) i.e. yearly sales are above Rs 5 crore, the late fee is Rs 50 per day and the maximum late fee for GSTR 3B is capped at Rs 10,000.
In the case of non-filing of GSTR 3B, late fees will be levied daily till it hits the capping limit. These late fees are added to the next month’s GSTR 3B return. This cannot be edited and no return can be filed until the payment of late fees.
Streamline all Back End Operations so that you can save Time & Money and focus on GROWING YOUR BUSINESS.
Streamline all Back End Operations so that you can save Time & Money and focus on GROWING YOUR BUSINESS.
Accounting & Tax: Let us crunch the numbers, so you can focus on growing your business.
Virtual CFO: Experience financial success with a Virtual CFO by your side.
Internal Audit: Gain peace of mind with our comprehensive internal audit services.
Company Secretary: Let our experienced Company Secretary guide you through corporate compliance effortlessly.
Interest on Late Fee For GSTR 3B- As Per Section 50 – Starting Immediately After The Due Date
If the taxpayer has failed to pay taxes within the time prescribed, then starting immediately after the due date, an interest of 18% will be charged to them. This 18% interest is required to be paid on the condition the cash ledger balance is used to pay the tax. But if the taxpayer has sufficient input tax credit and does not pay taxes through net banking, challans, and from the balance already in the cash ledger, then they are not liable to pay interest on the amount. Please note that there is no limit or cap in case of interest.
Penalty After 3 Months Of Due Date-As Per Section 122(1)(iii)
If the collected tax liability for GSTR 3B is not paid within three months of the due date, the taxpayer will be subjected to a penalty for the late fee for GSTR 3B. The penalty amount will be either the amount not paid or a minimum of Rs 20,000, whichever is greater. To avoid such penalties, it is crucial to ensure that you pay your tax liabilities on time and stay compliant with the GST regulations.
Remember that the late fee for GSTR 3B can be quite substantial, and failing to pay on time can result in additional charges, interest, and other punitive actions. Therefore, it is essential to keep up with the deadlines and ensure timely payment of your GST and other tax liabilities to avoid any unnecessary fees or penalties. In conclusion, staying compliant with the regulations and paying your tax liabilities on time is critical to avoid the late fee for GSTR 3B and maintain compliance with the relevant tax laws and regulations.
Conclusion
Submitting your GST and other tax liabilities on time is crucial to avoid incurring late fees for GSTR 3B. Late filing of GSTR 3B attracts a penalty fee that can be quite substantial, so it is essential to adhere to the deadline to avoid such penalties. Therefore, it is imperative to ensure that you submit your returns on time to avoid being penalized with the late fee for GSTR 3B.
Remember, failing to submit your returns on time can result in additional charges, interest, and other punitive actions, so make sure to keep up with the deadlines and stay compliant with the regulations to avoid any unnecessary fees or penalties. In conclusion, timely submission of your GST and other tax liabilities and paperwork is critical to avoid the late fee for GSTR 3B and maintain compliance with the relevant tax laws and regulations.
Read Our More Blogs: How to Register for GST
