Interest on Late GST Payment and Penalty on Missing GST Return Due Dates

Interest on Late GST Payment and Penalty on Missing GST Return Due Dates

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Interest  on Late GST Payment and Penalty on Missing GST Return Due Dates

The GST Council has decided to levy interest of 18 percent on the late payment of taxes under the GST regime . The interest would be levied for the day for which tax was not pay after the due late.

Let’s understand this by an example : If the total tax liability of person is Rs 1,000 and doesn’t pay tax continuously for a few day after the due date , then the interest amount will be calculated as 1000*18/100*1/365= Rs 0.49 per day approx  so , the person will have to pay this much interest each day after the due date .

In case if a taxpayer does not file his/her  return within the due dates mentioned above he shall have to pay a late fee of Rs. 50/day i.e  Rs.25 per day in each CGST and SGST ( in case of any tax liability ) and Rs. 20/day i.e. Rs .10/ day in each CGST and SGST ( in case of nil tax liability ) subject to a maximum of RS. 5000/-, from the due date to the date when the returns are actually file.

       

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