GST 4 Late Fee Calculation Tool


Note: Quarterly Form GSTR-4, made Annual return w.e.f FY 2019-2020

GSTR Late Fee

GSTR-4 was the Quarterly return for Composition dealers which was to be filed in the month succeeding the quarter. CMP-08 has now replaced the same and is to be filed by 18th of the month succeeding the quarter. GSTR-4 has now been made an annual return and to be filed by 30th of the month succeeding a financial year.
The late fee has been reduced to Rs.50 per day (Rs.25 under CGST & Rs.25 under the S/UTGST) since the Covid outbreak.
The maximum penalty has also been reduced to Rs.500.
Late fee for Nil Returns has been waived off.

Filing of returns under GST
GST returns have to be filed even if you didn’t have business during the defined tax period. Not registering for GST or not paying GST when you are liable to do so, is considered as an offence and you are charged with penalty. You have to detail your information in GSTR and submit it periodically.
In case of failing to do so, you will have to pay a late fee which is charged on daily basis. Interest is calculated seperately. Also, a penalty is charged on the basis of your intentions, whether it was done mistakenly or deliberately.
It is therefore highly advised to pay GST liability and file the applicable returns on time.

Return Description Frequency Due Date
GSTR-1 Details of outward supplies of taxable goods and/or services Monthly 10th of next month
*(11th of the next month wef Oct 2018 to Sep 2020)
Quarterly  (If opted) End of the month succeeding the quarter
GSTR-2
(Suspended wef September 2017)
Details of inward supplies of taxable goods and/or services Monthly 15th of next month
GSTR-3 (Suspended wef September 2017) Monthly return of outward and inward supplies along with the payment of tax Monthly 20th of next month
GSTR-3B Monthly return containing summary of outward and inward supplies along with the payment of tax Monthly 20th of next month
For taxpayers with an aggregate turnover in the previous financial year:
Exceeding Rs 5 crore- 20th of the next month.
Upto Rs 5 crore- 22nd of the next month for Category X states.
Upto Rs 5 crore- 24th of the next month for Category Y states.

Category X: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.

Category Y: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and New Delhi.
CMP-08 Tax statement-cum-challan for Composition dealers Quarterly 18th of the month succeeding the quarter
GSTR-4 Quarterly return for Composition dealers Annually 30th of the month succeeding a financial year
GSTR-5 Return for Non-resident foreign taxable persons Monthly 20th of next month
GSTR-6 Return for Input Service Distributors Monthly 13th of next month
GSTR-7 Return for Tax Deduction at Source Monthly 10th of next month
GSTR-8 Statement for Tax Collection at Source Monthly 10th of next month
GSTR-9 Annual returns Annually 31st December of next financial year
GSTR-9A Annual return for Composition dealers Annually 31st December of next financial year
GSTR-9C Certified Reconciliation Statement Annually 31st December of next financial year
GSTR-10 Final return to be filed by taxpayers whose GST registration is cancelled Once, when GST registration is cancelled or surrendered. Within 3 months of the Date of cancellation or Date of cancellation order, whichever is later
GSTR-11 Inward supplies statement for persons having Unique Identification Number (UIN) Monthly 28th of the month following the month for which statement is filed


* Subject to changes by Notifications/ Orders
**Statement of self-assessed tax by Composition dealers – same as the earlier Form GSTR-4, which is now made an annual return w.e.f FY 2019-2020.

Consequences of late filing
As per laws of CBIC, incase of late filing of GST returns you will have to pay late fee, which is charged on daily basis. Interest is also applied to the total amount unpaid of tax, at 18% in case of late filing of return and 24% in case of detailing reduction in output tax.
In case of an offence you may be charged with penalties. This penalty is 10% of unpaid tax for committing offence without intentions to fraud and 100% of unpaid tax for committing offence with intentions to fraud.

Penalty
Penalty is charged on the basis of offence committed. In case of offence committed without intentions of fraud- the taxpayer needs to pay 10% of unpaid tax as penalty.
While in case of deliberate offence, the taxpayer needs to pay 100% of unpaid tax as penalty along with the tax amount.
If you commit an offence with intention to fraud- then you could be arrested.
Penalty is calculated as per laws of the CBIC.

Waiver of late fee
GST late fee is waived off only under certain conditions. This is done as per guidance of the Central Board of Indirect Taxes and Customs. Decisions of waiving off the late fee are made after considering financial turnovers in the preceding financial year and faults in returns filing portal. This is done only for a short duration. Generally, late fee have to be paid before filing subsequent returns.

Voluntary Cancellation of registration
Cancelling GST registration means that you won’t be registered under the GST network anymore.
Continuation of business after cancelling registration will be treated as an offence.
If, however, you have a valid reason for cancelling your registration and you have issued tax invoices in that month, then you must file an application under FORM GST REG 16. In this form, you mention the input and output tax liabilty details. Your registration will be cancelled after issuing of the order.
If you have not issued any tax invoices in that month then you can login into your account on the GST portal and click on the Cancellation of Provisional Registration. Provide necessary details related to the same and your registration will be cancelled.

Recent Changes
Taxpayers having aggregate turnover above Rs.5 cr in the preceeding FY are to ensure all due returns have been filed, failing which they will not be able to generate PartA of the E-way Bill from 15 Oct 2020. (having 2 or more 3B's pendng).
During COVID-19 period of February, March and April 2020, the Interest rate on late return filings by small taxpayers (with Turnover up to Rs 5 crore) was reduced from the earlier 18% to 9%, if returns of inward supplies were filed by 30 September 2020.
Taxpayers with output liability, but not having filed their returns for the period July 2017 to March 2019 yet, could do so with a reduced late fee payment (maximum Rs 500) if returns were submitted by 31 October, 2020.
No late fee was charged for taxpayers who had no tax liability but were yet to file returns for the period from July 2017 to March 2020, if returns were submitted by 31 October, 2020.

25 August 2020
CBIC notified 1st September 2020 as the date beginning which interest will be calculated on Net Tax liability basis. This would be on the amount left after adjusting eligible ITC.

30 June 2020
The maximum late fee to be capped at Rs 500 per return (for the tax periods belowmentioned), filed after the deadlines given but before 30 September 2020 (dates mentioned in Notification 52/2020). Nil returns were to not be charged any late fee.
For turnover upto Rs 5 crore: February 2020 – July 2020
For turnover exceeding Rs 5 crore: May 2020 – July 2020

24 June 2020
1. The CBIC waived/reduced late fees for the late filing of GSTR-3B returns for the period July 2017 to January 2020, as follows-
a) If GST liability is Nil, and the GSTR-3B return is filed between 1 July 2020 and 30 September 2020, then the amount of late fee stands waived.
b) If GST liability is not Nil, and the GSTR-3B return is filed between 1 July 2020 and 30 September 2020, then the amount of late fees stand waived in excess of Rs.500 (Rs.250 under CGST and SGST respectively.)

8 June 2020
A nil GSTR-3B could be filed via SMS using the registered mobile number and OTP verification. The CBIC notified the date of applicability as 8 June 2020, from which nil returns could be filed through SMS.

10 January 2020
The late fee waiver for GSTR-1 for the period July 2017 to November 2019, further extended till 17th January 2020 (from 10th January 2020)

26 December 2019
The late fee for GSTR-1 waived off for the period July 2017 to November 2019, if the taxpayer submitted the return before 10 January 2020.

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