GSTR 3B Late Fees

In GST compliance, timely return filing is of utmost importance. GSTR-3B is a monthly self-declared summary return that must be filed by businesses. Late fee for not filing it in time can be hefty which is why deadlines need to be strictly followed.

Form GSTR-3B is a summary return of outward supplies, inward supplies, input tax credit (ITC) etc all. Now as per the GST law that has come in place with effect from 01st July 17 everyone had to file this return monthly even if they are not liable to pay any taxes for that period. Now one may say when it does not matter much in terms of liability so let it go! But wait! We did mention earlier about compliance rating which is in relation to filing your returns on time and correctly.

The GSTR-3B is a summary return that envelops the particulars of the outward and inward supplies, along with the computation of net tax liability. It is used for declaring all the tax liabilities to GST authorities which in turn are utilised for assessing tax dues of a registered taxpayer. Therefore, an unfilled or delayed filing of GSTR-3B return can have detrimental repercussions on both your business as well as the entire GST eco-system.

Late Fee Structure

The late fee for GSTR-3B is calculated based on the number of days by which you are delaying to file the return. GST Law has defined well structure penalties to discourage non-compliance & encourage timely filing. The fee thus is computed as follows:

For delays up to 15 days, a late fee of Rs. 25 per day will be applicable (maximum Rs. 500).

After the end of 15 days: A late fee of Rs. 50 per day (subject to a maximum of 0.05% of the total turnover in the state/UT)

 For Other Returns:

– For the first fifteen days of delay, a late fee of Rs 100 will be charged per day (Maximum Rs 5000)

-GST Due Dates, filing dates and penalties- After the initial 15 days: A late fee of Rs. 200 per day (subject to a maximum of 0.05% of the total turnover in the state/UT)

It is to be noted here that the maximum late fee is capped at 0.5% of the total turnover in the State or Union Territory for which the GSTR-3B is filed.

Waiver of Late Fee

GST authorities, in certain cases may consider waiving of reducing the late fee levied on taxpayers. The decision is generally taken based on merits of the case and the reasons provided by taxpayer for delayed filing of return.

One such instance where a waiver or reduction of late fee may be granted is in cases of natural calamities, system outages, or other genuine and unavoidable circumstances that prevented the taxpayer from filing the return on time. Additionally, if the delay was caused due to technical glitches or issues with the GST portal, the authorities may consider granting relief.

Not paying a late fee or repeatedly defaulting on GSTR-3B filings can have serious repercussions for businesses. The GST authorities may take enforcement actions, including levying more penalties and interest charges as well as suspending or cancelling your GST registration in the most severe instances.

In addition, failure to file GSTR-3B has certain negative consequences for the taxpayer for beginning with one’s credit score and reputation of the business which may affect credit facilities or business opportunities in the future.

Compliance Best Practices

To avoid late fees and maintain compliance with GST regulations, businesses should adopt the following best practices:To avoid late fees and maintain compliance with GST regulations, businesses should adopt the following best practices:

1. Maintain accurate and up-to-date records: The following are some points on how to maintain proper records to enable appropriate filing of GSTR-3B: It is also advisable that businesses should incorporate strict methods of accounting as well as stocks management in order to provide correct results.

2. Utilize technology: Make use of several software and tools that are well-aligned to GST to ease work entailing data collection, return preparation, and submission. Presenting such solutions actually eliminate possibility of errors and can be submitted on time.

3. Plan ahead: Create an organizationwide compliance calendar with timelines for meeting major GST compliance targets while also factoring in enough time for data gathering, verification and returns submission.

4. Train personnel: It is worth it to spend time and/or money on training programs that inform accountants and professionals who are handling GST related responsibilities. Empower them with adequate information that will enable them to deal with the many ramifications of GST as well as its filing procedures.

5. Seek professional assistance: For improving efficiency and to avoid facing problems in compliance, it is advised to consult GST consultants or experts to file the GSTR-3B on time if the operations are complex or the business is finding it difficult to file it on time.

Conclusion

Therefore, it can be ascertained that the fees stated in case of the submission of the GSTR-3B is late has that notion of deterring non-compliance and highlighting the significance of timely filing. Through firm comprehension of the penalties on provisions for GST and via familiarizing themselves with the likelihood of certain penalties, and in compliance with best practices; there shall be highly effective GST compliance standards attained with minimum penalties which shall facilitate the efficient running of the GST environment.