GST Penalty for Late Return Filing in India

Filing of the GST return is essential for all the individuals having registration of GST regardless of profit or turnover. If the individual is having no turnover or business activity in a month, but they are registered under GST, then they need to file the returns of the GST.

The non-resident taxable individuals are required to file a return each month, those dealers who are registered under the scheme of composition are required to file GST returns every quarter, and regular tax payer are required to file GST returns every month.

If you file GST return late, then you need to pay a penalty of Rs. 100 every day. The penalty is payable for the duration in which taxpayer is not able to file the GST return. The maximum applicable penalty is Rs. 5000.

If a taxpayer is not able to file GST return for a certain month, then he is also not authorized to file the GST return for the next month. If the taxpayer does not file the GSTR-1 return on 10th day of the month, then he is unable to file the GSTR-2 return on the 15th day of the month.

The late filing of return of GST will result into heavy penalty and fines.

Penalty for Late Filing of GST Return in India

GST Return Notice

The authorities of the GST issued a notice GSTR-3A to the taxpayer if he is not able to file GST returns for one or two months. After issuance of the GSTR-3A notice, a 15-day period is given to the taxpayer to file the GST return along with the penalty displaying on the website of the GST.

After the GSTR-3A notice, if within 15 days, the GST return is still not filed, then the officer of the GST would assess penalty, fines and liability of tax based on the available details and the taxpayer needs to pay the same.

It is better for the all the taxpayers of the GST, that after receiving the notice of GSTR-3A, the taxpayers can regularize compliance of the GST by paying penalty applicable.

GST Registration Cancellation

If the taxpayer is still not able to file the GST returns after getting the GSTR-3A notice, the registration of GST will be cancelled. The registration of GST of taxpayers who need to file tax returns each month will be cancelled if the taxpayer is not able to file the returns of the GST for a six months duration continuously.

The registration of GST of a composition taxable individual will be cancelled if the taxpayer is not able to file the returns of the GST for three periods of taxes consecutively.

After GST registration cancellation, the taxpayer is required to pay fines, penalty and GST tax as per the assessment of the GST officer. The payment of GST is equal to the input tax credit in respect of inputs contained in finished or semi-finished goods or held in stock or capital goods or machinery and plant on a day instantly.

Impact on GST Compliance Rating Score

  • All the taxpayers will be offered a compliance score of rating and it is based up on the record of payment of GST, filing of GST return and various needs. The rating score of the compliance of the GST is published in the website of the GST or in public domain for all the taxpayers of the GST and this can easily access by everyone.
  • Therefore, a business who is not able to file the return of the GST or pay the GST return at proper time will be affected by the rating score of the GST.
  • If no transactions are done in a month or if the business is closed, the return of GST is to be filed. If the department of GST sends any notice to the taxpayer, then it is better that the taxpayer quickly files the pending returns of the GST. After the clearance of tax liability and filing of the GST returns, its cancellation can be applied by the taxpayer. If within 15 days, the compliance of the GST is regularized by the taxpayer, then the registration of GST is valid. If the taxpayer is not able to give any reply to the notice of the GST, then his registration of GST is cancelled and a proper notice regarding this is issued to the taxpayer.
  • The entire regime of GST is depending upon accurate and timely details furnished by taxpayers and infrastructure of the IT. If there is some issue, then the taxpayers suffer the most.
  • The Indian government is required to address the following concerns of the taxpayers
  • For those returns which are NIL, a late filing fee is levied.
  • As compared to tax payable amount, the late filing fee is more.


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