Late Fees and Interest on Delay of filing of GSTR-3B

As we already know the Goods & Services Tax (GST) is levied upon the Supply of certain Goods or Services as per the provisions under GST. The Goods & Services Tax is charged on the value of Supply and the Tax must be paid on the GST Portal Online which will then be reflected in cash and Credit Ledger showed on the Dashboard of the portal.

Furthermore, the GSTR-3B return should be filed to have the amount payable reflected in the ledger on the GST Portal and there’s a due date to file this Return.

Also, Read; GST Return Filing Course With Practical Examples

However, If the taxpayer fails to file GSTR-3B within the due date, the taxpayer would be charged with a penalty for the delay which would be required to pay in the Cash Ledger. Only then will the Return be eligible for filing after the Due Date.

The penalty will be charged in the form of:

• Late Fees and;
• Interest

Late Fees penalty on Delay in filing:

To levy a penalty on a day-to-day basis on the delay of filing GST Returns, the Taxpayer would be charged with Late Fees. The Due date for GSTR-3B Plays an Important role here. It is a Monthly Data Statement that shows the details of Output taxes, Input Taxes, and the Final Tax Payable for the month. Generally, the due date for GSTR-3B falls on the 20^th of every month.

However, there might be instances or cases in which Government may give extensions for due Dates if required for specific months. Hence, those will be considered as the new Dates for such months and no penalty will be charged to the taxpayer in that case only if they pay the amount by the specified due date.

Once again, it is to note that the penalty is charged for the number of days of the delay in filing the return this penalty will be reflected in GSTR -3B and must be paid in the Cash ledger on the GST portal.

Interest in Late Payment of GST

A Penalty by imposing interest for the delay of filing of GSTR-3B return is different from late fees. While the Late Fee is imposed on the taxpayer for the delay of payment of the amount payable after the due date, Interest, on the other hand, could also be levied as a penalty for not only delay of the amount payable but also in the case where Input Tax Credit is Claimed in excess or where the Output Liability is reduced in excess.

Hence, Interest is levied on the Goods and Services Tax Liability unlike the case of GST Late Fees. That is why the amount of interest will be based on the factors like the Total Tax Amount payable, the interest rates specified in the provisions, and the period of Delay.

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