GST - Return late filing fees, Interest on late filing, Refund procedures

Late filing fee & Interest on GST Payment & Applying GST Refund

1. What is late filing fee of GSTR3B?
2. What is the maximum penalty for GSTR3B?
3. Is there any late fee on GSTR1?
4. If late fee of GSTR3B is paid at the time of filing of return?
5. Can we calculate GSTR3B late filing fee?
6. What is the due date of payment of late fee of GSTR3B?
7. Why interest on GST arises?
8. What are the rates of interest on GST late payment?
9. What is the late filing fee for GST annual return?
10. In what situations GST refund may arise?
11. In what cases, unutilized ITC is refundable?
12. How to apply for GST Refund?
13. What is procedure of filing online RFD-01 for GST refund?

1. What is late filing fee of GSTR3B?

Currently late filing fee for GSTR3B is Rs. 20 each day of delay (10 CGST +10 SGST) for nil return. For GSTR3B with data will have penalty of Rs.50 per day of delay (25 CGST +25 SGST). These are reduced penalty for time being.

2. What is the maximum penalty for GSTR3B?

Maximum penalty for GSTR3B is Rs.10000 (5000 for CGST +5000 for SGST).

3. Is there any late fee on GSTR1?

No time being Govt has waived off any late fee on GSTR1, so you do not have to pay any late filing fee for GSTR1.

4. If late fee of GSTR3B is paid at the time of filing of return?

No, late fee on GSTR3B has to be paid along with next return.

5. Can we calculate GSTR3B late filing fee?

Late filing is automatically calculated by GSTN portal while filing next GSTR3B.

6. What is the due date of payment of late fee of GSTR3B?

System will not take submission of next month GSTR3B unless we have paid late fee of earlier GSTR3B.

7. Why interest on GST arises?

Interest on GST arises because of 3 reasons

1. Delay payment of GST after due date
2. Excess claim of ITC
3. Less declaring of output tax

8. What are the rates of interest on GST late payment?

Following are the rates of interest on GST:-

1. If interest arises because of delay in payment it is 18%
2. If interest arises due to excess ITC claim or less output tax declaring, it is 24%

9. What is the late filing fee for GST annual return?

 For late filing of GST annual return is Rs. 200 per day of delay upto maximum of 0.25% of turnover.

10. In what situations GST refund may arise?

GST refund may arise due to following:-

1. Due to excessive GST payment over the liability
2. Due to GST payment in wrong head & do not have output liability to settle that in current or near future
3. ITC unutilized because in few cases
4. ITC on exported goods etc. 

11. what cases, unutilized ITC is refundable?

Unutilized ITC is refundable in following situations:

1. Accumulated ITC is unutilized because output supplies of goods/services is Zero rated. For example, Export.
2.  Unutilized ITC is accumulated because the rate of GST on output supply is lesser than the rate of GST on input supplies.

12. How to apply for GST Refund?

You can apply for GST refund online in form RFD-01 through GST Portal. You can file RFD-01 online with all the refund amount, bank account details etc. with digital signature or EVC. 

13. What is procedure of filing online RFD-01 for GST refund?

Following are the steps to file online RFD-01 for GST refund

1. Login to GST portal
2. Go to Refunds in Services tab
3. Click on create refund application
4. It will show you different refund situations like excess payment or unutilized ITC etc.
5. Choose the applicable refund type
6. If it is because of excessive payment, it will show you the balance in electronic cash ledger
7. You can check the electronic liability ledger from a link given there to ensure final extra payments due for refund
8. Then fill the bank account details
9. Attach the supporting documents based on your refund type
10. Submit it with your digital signature or EVC.