In this article, we will discuss how the GSTR interest and late fee calculator works. To learn more, keep reading.
The Goods and Services Tax is often known as GST. In India, it has taken the place of several other indirect taxes, including the excise tax, value-added tax, services tax, etc. On March 29, 2017, the Parliament approved the Goods and Service Tax Act, which went into force on July 1 of the same year.In other words, both the provision of commodities and services is subject to the GST (Commodities and Service Tax). In India, each value addition is subject to the comprehensive, multi-stage Goods and Services Tax Law, which is dependent on the destination. GST is a single domestic indirect tax regime that applies to the entire nation.
What Are the Interest and Late Fees Under the GST Act?
Due to the GST’s late payment, interest is applicable. Every registered taxpayer who submits their GST after the deadline receives an excess input tax credit (ITC), or lowers their output tax burden and must pay interest.
The following are the interest rates for late GST payments:
| Particulars | Interest |
| Tax paid after the due date | 18% |
| Excessive ITC claimed or excessive reduction in production tax liability | 24% |
The number of days past the due date that there is a late fee will determine how much it will be.
Late fee under Goods & Services Tax is also applicable for the ‘NIL’ return filers. The following is applicable late fee for the GSTR-3B:
| Particulars | Normal Return Filers | Nil Return Filers |
|---|---|---|
| CGST Act | ₹25 | ₹10 |
| SGST/UTGST Act | ₹25 | ₹10 |
| IGST Act | ₹25 |
₹20 |
What Are GST Interest and Late Fee Calculators?
The interest and late fee calculator makes it simple for taxpayers to calculate the interest and late fee that will be charged if returns are filed after the deadline.
The government offered respite in the interest and late charge for GSTR-3B return filers because of the COVID-19 scenario in the nation.
Additionally, the GSTR-3B filling will be done in stages depending on the amount of business that was transacted in the prior fiscal year. For the convenience of GSTR-3B return filers, this GSTR interest and late fee calculator calculates interest and late fees.
Benefits of GST Interest and Late Fee Calculator
Depending on the taxpayer’s turnover, there are various cutoff dates and variable interest rates for late GST payments. The taxpayers can, however, use this calculator to easily enter data to determine the amount of interest and late payment penalties that must be paid.
How to Use This Calculator?
These are the steps to use the GSTR interest and late fee calculator:
State:
Select the State name from the drop-down provided with the list of States.
Turnover category:
Choose your turnover category, which is the business’s PAN-level aggregate turnover for the previous financial year.
Tax period:
Also, choose the return period for which you wish to determine the interest and late payment penalty as a result of late payment and return submission.
Return filed on:
The date that you will file the return should be entered.
Tax Liability:
According to your book, enter the output tax liability (sales) and the tax due on outgoing supply.
ITC Available:
According to your books, enter the Input tax credit (Purchases).
Cash to be paid:
The Net Tax Liability will be determined by the calculator (on which interest and Late fee is computed)
Submit:
To find out your tax liability, click “Submit.”
How to Calculate Interest and Late Fee? (See Example)
- State name: Karnataka.
- Turnover category : TO > Rs.5cr
- Tax period: Feb 2020
- Return filed on: 15-05-2020
- Tax Liability : IGST – ₹ 10000 CGST – ₹ 2500 SGST -₹2500 Cess – ₹1000
- ITC Available: IGST -₹6000 CGST – ₹500 SGST -₹500 Cess – ₹100
- Cash to be paid: IGST -₹ 4000 CGST – ₹2000 SGST -₹ 2000 Cess – ₹ 900
- Submit: then Click on ‘Submit’ to get your tax liability.
- Tax Liability : ₹ 8900 (IGST -₹ 4000 CGST – ₹2000 SGST -₹2000 Cess – ₹900)
What Are the Types of GST?
The CGST, SGST, and IGST are the three taxes that are applicable under this system.
- CGST: It is the tax collected by the Central Govt on an intra-state sale (e.g., a transaction happening within the state)
- SGST: It is the tax that the state government collects from an intrastate sale.
- IGST: It is a tax collected by the Central Govt for an inter-state sale (e.g.one state to another state)
Who Should Register For GST?
The following organizations and people are required to register for the Goods and Services Tax:
- E-commerce aggregators
- Individuals who supply through e-commerce aggregators
- Individuals who pay the tax as per the reverse charge mechanism
- Agents of input service distributors & suppliers
- Non-resident individuals who pay taxes
- Businesses with annual revenues that exceed the threshold limit.
- Individuals who registered before the introduction of the GST law.
Registration of GST
Any business that qualifies for the GST’s eligibility requirements must register on the GST site set up by the Indian government. A special registration number called a GSTIN will be given to each registered entity.For all Service providers, Buyers, and Sellers, registration is necessary. A business must register for GST if it earns Rs. 20 lakh or more in total revenue within a financial year. Processing takes 2 to 6 working days.The GST Council has assigned different goods and services with varying GST rates. While some goods are available for purchase at no GST, other goods have GST rates of 5%, 12%, 18%, and 28%. Since the new tax system went into effect in July 2017, the GST rates for products and services have altered a few times.
How does the GST work in India
- Manufacturer:
GST must be paid by the manufacturer on both the product’s added value and the raw materials they purchased.
- Service Provider:
In this case, the service provider will be responsible for paying GST on both the product’s purchase price and the value added to it. The total amount of GST that must be paid, however, may be reduced by the manufacturer’s tax payment.
- Retailer: GST must be paid by the retailer on both the product they bought from the distributor and the margin they added. The amount of GST that must be paid can, however, be reduced by the retailer’s tax payment.
- Consumer: Good & Service Tax must be paid on the product that has been purchased.
Conclusion
We hope that after reading all of the information provided, it is clear how the GSTR interest and late fee calculator works and how it keeps you informed about the charge you will pay if you don’t submit your GST return by the deadline.If you are also facing difficulty in calculating your GST interest & late fees, Vakilsearch can offer you the best services that help you file all your returns on time. Once you reach out to us, our expert team members will schedule an appointment to better understand your business. We will then collect the required information and draft your return statements. Once we take your permission, we will file them on your behalf.
