Understanding the Late Fee Charges for Delayed GST Filing

Posted In | Finance | Accounting Software | India Accounting Tax

GST, also known as Goods and Services Tax, is a comprehensive tax that is levied on the supply of goods and services in India. It has replaced many indirect taxes in the country. Filing GST returns on time is crucial for businesses to avoid penalties, including late fee charges.
 

What is GST Late Fee?

The GST late fee is a penalty that is charged when a taxpayer does not file his/her GST returns on time. This fee is automatically calculated by the GST portal when a taxpayer files his/her returns after the due date. It is important to understand the late fee charges for delayed GST filing, as they can significantly impact a business's finances.
 

How is GST Late Fee Calculated?

According to the GST Act, a late fee is charged if the GST returns are not filed within the due date. The late fee is calculated from the day after the due date till the date when the returns are filed. For every day of delay, a late fee of Rs. 25 per day is charged if it is a case of tax liability. In cases where it is nil return, the late fee is Rs. 10 per day. The maximum amount that can be paid as late fee is Rs. 5,000.
 

How to Avoid GST Late Fee?

There are several ways to avoid GST late fees:
 

• Regularly Update Books of Accounts: Regular updating of books of accounts helps in timely filing of GST returns.
   
• Track GST Return Due Dates: Keeping a track of GST return due dates ensures that you file your returns on time.
   
• Use GST Software: Using GST software can help streamline the process of GST return filing and thus, can help avoid late fee.
   

Understanding the late fee charges for delayed GST filing is crucial for every business. It not only helps businesses to avoid unnecessary penalties but also ensures compliance with the GST laws. Thus, it is advisable for businesses to file their GST returns on time and avoid these charges.