INTEREST AND LATE FEES DUE TO DELAY OR NON-FILING OF RETURNS - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

5. INTEREST AND LATE FEES DUE TO DELAY OR NON-FILING OF RETURNS (I) Filing of returns is mandatory under GST. Even if there is no transaction, a Nil return must be filed. (II) Filing returns for previous month/ quarter is a pre-requisite for filing returns for current month/ quarter. (III) The late fee in respect of GSTR-1 is populated in the liability ledger of GSTR-3B filed immediately after a delay. (IV) Interest @ 18% per annum has to be calculated by the taxpayer on the amount of outstanding tax to be paid. It shall be calculated on the net tax liability identified in the ledger at the time of payment. The time period will be from the next day of filing due date till the actual date of payment. (V) As per the CGST Act, 2017, the late fee is Rs.100/- per day per Act, i.e. Rs.100/- under CGST Rs.100/- under SGST (Total Rs. 200/- per day), subject to maximum of Rs. 5000/- per Act (Rs. 5000/- CGST + Rs. 5000/- SGST) per Return. (VI) There is no late fee separately prescribed under the IGST Act, 2017. (VII) For GSTR-9/9C, the maximum late fee per Act is capped at 0.25% of the turnover in the State or Union Territory.