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We are charged a late payment fee when we fail to file the GST by the due date.

This interest amount on GST needs to be paid by us (every registered taxpayer) after the due date or claims excess Input Tax Credit (ITC) or reduces excess output tax liability. 

The amount of interest paid due to late payment of GST depends on the number of days of delay from the due date.

To calculate accurate interest, you must have a perfect GST interest calculator

In this article, you will find an accurate calculator and all the necessary information.

So, let’s get started!

The interest charged on late payment of GST is as follows:-

ParticularsInterest
Tax paid after the due date18%
Excess ITC claimed or excess reduction in output tax liability24%
Late payment of GST

Please find below the applicable late fee for GSTR-3B:

ParticularsNormal Return FilersNil Return Filers
CGST ActRs 25Rs 10
SGST/UTGST ActRs 25Rs 10
IGST ActRs 50Rs 20
late fee for GSTR-3B

Pro Tip:  Late fees are also applicable to 0% of taxpayers.

How do you calculate GST interest?

In order to avoid penalties and late filing interest on GST, it is important to file your GST Returns on time.

The government of India imposes late fees when a Registered Taxpayer does not file GST Returns on time. 

Below is the table of Late fees until May 2021:-

ParticularsLate FeesLimit
GSTR 3B, GSTR 1, GSTR 4 ((If there are Sales))50 / DayMax Rs.10000
GSR 3B, GSTR 1, GSTR 4 ((Nil Return)20 / DayMax Rs.10000
GSTR 9, GSTR 9A200 / DayMax of 0.5% of turnover
GSTR 10 (Final Return)200 / Day
Late fees until May 2021

Below is the table of Late fees from June 2021:

TurnoverType of ReturnLate Fees
1. Nil returnsGSTR 3B/GSTR 1Rs 50 per day up to a maximum of Rs 10,000
2. Turnover upto Rs 1.5 Crores (other than Nil Returns)GSTR 3B/GSTR 1Maximum Late Fees is Rs 2000
3. Turnover between Rs 1.5 crore to Rs 5 Crore (other than Nil Returns)GSTR 3B/GSTR 1Maximum Late Fees is Rs 5000
4. Turnover above Rs 5 CroresGSTR 3B/GSTR 1Maximum Late Fee is Rs 10,000
5. Nil returnsGSTR 4Maximum Late Fee is Rs 500
6. For Other than Nil ReturnsGSTR 4Maximum Late Fees is Rs 2000
Late fees from June 2021

How is interest calculated in GST portal?

GST interest is calculated after deducting eligible input tax credits from the total output tax

In other words, interest will be calculated on the amount paid by cash to discharge the GST liability. 

Calculation of interest begins on the day following tax filing until payment is made.

How are interest and penalty calculated on GST?

Late fees will be applied on a daily basis if in case you have not filed GST returns for which you are liable.
In addition, if any tax is due, interest will be charged at the rate of 18% per year.

Late payment of tax will attract interest. 

A late fee is charged if a return is filed late. The penalty is determined by the law in force at the time of the offense. Interest is applicable on late payment of tax.

Is GST paid on interest?

No, GST will not be levied on interest as it is covered under the exemption.

You need to pay interest of 18% per annum in case of non-payment of the same.

How do I calculate late fee for GST?

Rs. 100 is charged per day under CGST and SGST each as late fees for not filing GSTR 9 within the due date.

A maximum late fee will be calculated at 0.25% of the turnover for the financial year.

ActLate fees for each day of delay
Central Goods and Services Act, 2017Rs 100
Respective State Goods and Services Act, 2017 (or) Union Territory Goods and Services Act, 2017Rs 100
Total Late feesRs 200
Late Fee

How to calculate GST late fee with calculator?

Use the online GST Late Fees Calculator to calculate interest and late fees by following these steps:

  1. State name: Enter the appropriate State name from the list of States.
  1. Turnover category:  Select the previous financial year turnover category or at the PAN level.
  1. Tax period: Select the return period for which late return fees and interest will be calculated, and the due date for late return payments.
  1. Return filing date: Enter the date of filing of the return.
  1. Tax liability: Enter the outward tax liability and the sales or output tax liability
  1. ITC Available: Enter purchases or ITC
  1. Cash payment: Your net tax liability is automatically calculated and displayed.
  1. Submit: Get your tax liability.

How to calculate GST late filing penalty using calculator?

Consider the example of a dealer in Nashik with a turnover slab of up to 5 crores filing the February 2022 returns on the 14th of May 2022. Let us assume the dashboard figures as applicable for IGST, CGST, SGST and the available Cess at Rs 500, CGST and SGST of Rs 900/- each and IGST as Rs 8,000/-. 

  1. Fill in the State name as Nashik manually or choose from dropbox.
  2. Click on the Turnover category tab of TO > Rs.5cr
  3. Enter the Tax period by entering Feb 2020
  4. Enter the date of Return date as 14-05-2020
  5. The Tax Liability is under IGST -Rs.20,000, SGST -Rs.3500,  CGST – Rs.3500, Cess – Rs.2000.
  6. Under the ITC Available, you will see the fields IGST -Rs.8000, CGST – Rs.900, SGST -Rs.900, Cess – Rs.500
  7. The fields Cash to be paid are automatically computed and display as IGST -Rs. 12,000, SGST – Rs.2600, CGST -Rs.2600, Cess – Rs.1500
  8. Click Submit to get your tax liability.
  9. The Tax Liability displays as Rs.18,700(inclusive of IGST, SGST, CGST and Cess).

How is interest penalty calculated?

This is how you can calculate the interest due on late payment: Amount of the debt X number of days for which the payment is late X daily late payment interest rate in operation.

Late payment penalty is calculated using the following formula: Late payment penalty = (Remaining capital on due date + Remaining interest on due date) X  Penalty rate (%)

What if GST return not filed for 6 months?

GST registration will be canceled by the concerned officer if the taxpayer has not filed monthly returns continuously for six months.

The Late fee computation for GSTR-3B and GSTR-1 is:

A maximum late fee of Rs 10,000 up to May 2021 is fixed by the law. 

In any case, the maximum late fee that can be charged by the Government is Rs 5,000 for each return being filed under each Act.

How is service tax interest calculated?

Interest on late payment of service tax

    AFTER 01-10-2014    

  •  Delay upto 6 months : 18%     
  •  Delay beyond 6 months but up to 1 year : 24%     
  •  Delay beyond 1 year : 30%     

    Penalty on late payment of service tax

    Higher of

  • Penalty is RS.100/- daily for the duration of the penalty
  •  1% of such tax per month      
  • But shall not exceed 50% of service tax due 

Penalty for late filing of service tax return

  • For delay up to 15 days –  500/-
  • For delay beyond 15 days and up to 30 days – 1000/-
  •  Delay beyond 30 days – RS.1000/- plus RS.100 per day of delay beyond 30 days 1000/- + no of days delay*100/-
  • Maximum late fee up to RS 20,000/-

Penaltty for not obtaining service tax registration

Higher of

  •  RS 10,000/-  or
  • RS. 200 per day during which failure continues

Frequently Asked Questions (FAQs):-

How do I avoid late fees on GST?

You can visit the assessing officer’s office to cancel your GST registration from the registration date for saving late fees.

Can we claim GST after 2 years?

No, you cannot claim GST after 2 years.

The refund claim for a tax period can be filed only after filing the details in Form GSTR-1 for the said tax period. 

What is the maximum penalty for GST?

The maximum penalty for GST is 10% of the tax amount due. However in case of tax has not been paid or a short payment is made, a minimum penalty of Rs 10,000 has to be paid. 

Can I file GST returns yearly?

The registered businesses can file the returns monthly, quarterly, and annually based on the category of business through the Government of India’s GST portal. A normal taxpayer needs to file Form GSTR-9.

However, composition taxpayers can file Annual Returns in Form GSTR-9A.

Is monthly GST return mandatory?

Businesses having more than Rs. 5 crores as annual aggregate turnover (and taxpayers who have not opted for the QRMP scheme) have to file two monthly returns and one annual return.

Wrapping Up

Late payment of fees attracts interest. In order to save money for extra payments, you need an accurate calculator.

Hopefully, you have found all the information you need regarding the GST interest calculator

If you have any questions, please do not hesitate to contact us and comment in the comment box below.

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