GST Calculator- GST Late Fee & Interest Calculator

When it comes to staying GST-compliant, timely filing of returns and payment of taxes is crucial. However, delays might happen, resulting in late fees and interest charges. To help businesses navigate these penalties, a reliable GST late fee calculator and GST interest calculator can be invaluable tools.

What are the Interests and Late Fees under the GST Act?

Under the GST regime, businesses need to file their returns and pay the corresponding taxes within the prescribed due dates. Failure to do so attracts late fees and interest on the outstanding tax liability. The late fee structure is as follows:

• ₹50 per day of delay for GSTR-3B (maximum ₹5,000)

• ₹20 per day of delay for GSTR-1 (maximum ₹10,000)

• ₹200 per day of delay for GSTR-9 and GSTR-9C (maximum ₹10,000)

Additionally, interest is levied at 18% per annum on the unpaid tax amount. The government calculates this interest from the due date until the date of payment. It's important to note that interest is applicable even if you have filed your returns on time but haven't paid the taxes.

What is FlexiLoans GST Interest and Late Fee Calculator?

FlexiLoans' GST calculator online tool determines the late fees and interest payable on delayed GST returns and payments while considering following factors:

• Due date for filing the return

• Actual date of filing

• Tax liability as per the return

• Amount of tax paid, if any

• Applicable late fee and interest rates

By inputting these details, the GST calculator generates the late fee and interest amount automatically. This saves businesses the time and effort of manually calculating these penalties, reducing the risk of errors.

Advantages of Using GST Interest and Late Fee Calculator

1. Accuracy: A well-designed GST late fee calculator and GST interest calculator ensure precise calculations, eliminating the chances of mistakes that may occur with manual computations.

2. Time-saving: Instead of spending hours trying to figure out the late fees and interest, you can obtain the results instantly using an online GST calculator.

3. Compliance: By knowing the exact penalties, you can prioritise your GST obligations and take steps to minimise delays in filing and payments.

4. Financial planning: Understanding the potential late fees and interest helps you plan your business's cash flows better and allocate funds accordingly.

How to Calculate GST Late Fees and Interest

1. Determine the due date for filing the GST return and making the payment.

2. Note down the actual date of filing and payment.

3. Calculate the number of days of delay from the due date to the actual date.

4. Identify the applicable late fee rate based on the type of return (GSTR-3B, GSTR-1, GSTR-9 or GSTR-9C).

5. Multiply the number of days of delay by the late fee rate to arrive at the total late fee payable.

6. Calculate the interest by multiplying the outstanding tax amount by 18% per annum and the number of days of delay.

Alternatively, you can use a GST late fee calculator or GST interest calculator to automate these calculations. Simply enter the required details, and the calculator will generate the results instantly.

Real-life Example

ABC Ltd had a tax liability of ₹50,000 for the month of January. The due date for filing GSTR-3B was 20th February, but they filed it on 5th March.

Using a GST late fee calculator, they found out that they need to pay a late fee of ₹700 (14 days x ₹50 per day) and interest of ₹370 (18% per annum for 14 days on ₹50,000).

Consequences of Late GST Payments

1. Legal Action: Persistent non-compliance can lead to legal proceedings and prosecution.

2. Credit Score Impact: Late payments can negatively affect your credit score, making it harder to secure loans or favorable credit terms in the future.

3. Reputation Damage: Non-compliance can tarnish your business reputation, making it difficult to attract customers and investors.

4. Cascading Effect: Late payments can disrupt your supply chain, as your suppliers may withhold goods or services until your dues are cleared.

How to Avoid GST Late Fees & Interest

1. Set Reminders: Use a calendar or reminder system to keep track of GST due dates.

2. Maintain Accurate Records: Keep your financial records up-to-date and organized to avoid last-minute scrambling.

3. Plan Your Cash Flow: Ensure you have sufficient funds set aside to cover your GST liabilities.

4. Automate Payments: Consider setting up automatic payments to avoid manual errors and delays.

5. Seek Professional Help: If you're unsure about your GST obligations, consult a tax professional or accountant for guidance.

What is the interest rate under GST?

Along with a late fee for delayed filing of GST returns, the taxpayer also becomes liable to pay interest on the GST. The interest is calculated on the gross GST that the taxpayer is liable to pay. It is calculated from the next day of the due date. To save yourself from paying late fees and interest, try to file your GST returns on the due date only.

Process of late fee and interest calculation under GST 

An online calculator is one of the easiest ways to know about the late fee and interest you will have to pay because of delaying your GST filing. They will ask for certain inputs and give an output informing you about your tax liability, late fee, and interest.

Here are the steps that you have to follow while using an online GST late fee and interest calculator:

Step 1: Select the name of your state. Usually, you will be provided with a drop-down box so you can choose your state from there. 

Step 2: Choose the turnover level that your aggregate turnover belongs to in the concerned financial year. 

Step 3: Choose the return period for which the late fee and interest are supposed to be calculated.

Step 4: Put in the date you will be filing your return. 

Step 5: Enter all your tax liabilities and your ITC. 

Step 6: After that, the online calculator will give you the tax liability on which your late fee and interest will be calculated. 

Step 7: You will know the late fee and interest rate due from your side. 

The calculator considers the number of days for which you have to pay the late fee and interest.

The formula is:

Interest= Tax Liability Interest Rate Number of days of delay/365 

Late Fee= Number of days of delay * Late fee per day depending on your turnover and return type.

Conclusion

Managing GST compliance can be complex, but GST late fee calculators / GST interest calculators make it easier to determine the penalties for delayed returns and payments. By using these online tools, businesses can save time, ensure accuracy and plan their finances better. Additionally, GST loans / GST loan schemes provide financial support to businesses in need.

For those seeking quick and affordable funding solutions, FlexiLoans offers a range of unsecured business loans, including working capital loans, small business loans, etc. With these business loans without collateral having easy MSME loan eligibility criteria and a simple application process, FlexiLoans aims to bridge the credit gap for small and medium enterprises. You can also use an online business loan calculator to determine interest payable on the loan.

FAQs

1. What is a reverse GST calculator?
   A reverse GST calculator is a tool that helps businesses determine the base price of a product or service by removing the GST component from the total price. This is useful when you know the final price (inclusive of GST) and want to calculate the original price before GST.

    

2. Is there a maximum limit on the late fees for GSTR-3B?
   Yes, the maximum late fee for GSTR-3B is ₹5,000. This means that even if your delay exceeds 100 days (₹50 per day), you will not be liable to pay more than ₹5,000 as a late fee for GSTR-3B.

    

3. Can I use a SY GST calculator to determine my late fees and interest?
   SY GST calculators are specifically designed for calculating the tax liability under the Composition Scheme (Sugam Yojana). To determine late fees and interest, you should use a dedicated GST late fee calculator or GST interest calculator.

    

4. Are there any other consequences of delayed GST payments apart from late fees and interest?
   Yes, apart from late fees and interest, delayed GST payments can lead to penalties, prosecution and cancellation of GST registration in severe cases of non-compliance. It's crucial to stay compliant and up-to-date with your GST obligations to avoid these consequences.

    

5. Can I claim the input tax credit if I pay my GST liabilities late?
   No, you cannot claim input tax credit if you pay your GST liabilities after the due date. To be eligible for input tax credit, you must file your returns and pay your taxes within the prescribed timelines. Late payments can result in the loss of input tax credit for the relevant period.

    

6. Are there any loans available to pay off GST dues?
   Yes, financial institutions offer specialised GST loans to help businesses clear their outstanding GST liabilities. These loans come with quick disbursal, flexible repayment options and minimal documentation.