Quick Answer: What Is Interest And Late Fee In GST?

What is interest on GST late payment?

Interest on Late Payment of GST According to the GST Penalty regulations, an interest will be charged at the rate of 18 percent per annum from the taxpayers who fail to pay their taxes on time.

The interest will be levied for the days after the due date..

How is GST late fee calculated?

The late fees should be payable by normal amount (Rs. 50 or Rs. 20 per day) if the return is filed on 1st April 2019 or thereafter. … Late fees is calculated automatically by the GST system.

How do you calculate interest on a late payment?

To calculate the interest due on a late payment, the amount of the debt should be multiplied by the number of days for which the payment is late, multiplied by daily late payment interest rate in operation on the date the payment became overdue.

Is interest exempt from GST?

So he will liable to pay GST on the taxable turnover of rental income of Rs 9.84 Lakhs and balance amount of interest income Rs 10.28 Lakhs will be considered as exempt income not liable to GST.

What if GST return not filed for 6 months?

These include contravention of the provisions of the Act, a composition scheme assessee not filing returns for three consecutive tax periods, any non-composition assessee not furnished returns for a continuous period of six months, not commencing business within six month from the voluntary registration, and …

How is GST interest calculated?

Note: The Interest has to be calculated from the next day on which the tax was due….Interest under GSTR.ParticularsInterest1. Delayed Payment of GST18% per annum2. Undue or Excess reduction of Tax Liability24% per annum3. Undue or Excess claim of ITC24% per annumApr 13, 2020

Is GST late fee allowed as expense?

Late fee is not paid for a purpose which is an offence or prohibited. … Therefore, late fees paid for delay in filing GST returns will be allowed as a deduction under Income Tax.

How can I avoid paying GST late fees?

At the time of drafting GST rules, the GST council settled not only on the tax rates on goods and services but also on the penalty on late payments for GST….Amount of Late fees applicable.For Nil Return filersName of the ActLate fees for every day of delaySGST ActRs 50IGST ActRs 1001 more row

What happens if I don’t pay GST on time?

An offender not paying tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000. Consider — in case tax has not been paid or a short payment is made, a minimum penalty of Rs 10,000 has to be paid. The maximum penalty is 10% of the tax unpaid.

How much is the late fee for Gstr 1?

Late Fees for not filing GSTR-1 is Rs. 200 per day of delay (Rs. 100 as per CGST Act and Rs. 100 as per SGST Act.