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.
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 is still not paid within 3 months of the due date, then the taxpayer will be subjected to the penalty of the amount not paid or a minimum penalty of Rs 20,000, whichever is greater.
So, this is a brief description of the late fee for GSTR 3B. Don’t forget to submit your GST and other tax liabilities and paperwork on time, so to avoid the penalties and other punitive actions.
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