GST Calculator

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GST Calculator- GST Late Fee & Interest Calculator

The Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. It is levied on every stage of supply. This eliminates the need for indirect taxes like VAT, service tax or excise duty. The GST has replaced 17 different types of indirect taxes that were imposed earlier. However, if you fail to pay GST on time, you will be charged a late fee. The late fee payable is implemented through the Goods and Service Tax Act, of 2017.

The GST was enacted in 2017 and is considered one of the biggest tax reforms India has ever had. The government has implemented the GST to improve the indirect tax system of India. It also increases tax compliance among all types of businesses, whether small- or large-scale. With GST, the tax regime in India has become uniform, and anyone can file GST returns online in a very simplified manner.

You can register your business for GST and generate your GSTIN (a 15-digit code given to all registered taxpayers) without paying any registration fees.

Types of GST 

Before we understand what GST late fees and interest are and how they are calculated, let us know the different types of GST payable. 

  • State Goods and Service Tax (SGST): This is levied on the intra-state supply of goods. It is charged and collected by the respective state government. 
  • Central Goods and Service Tax (CGST): This is also levied on the intra-state supply of goods but is charged and collected by the central government.
  • Integrated Goods and Service Tax (IGST): This is imposed on inter-state transactions, and the tax collected as IGST is shared between the state and the central government. 
  • Union Territory Goods and Service Tax (UGST): This is levied on any supply transactions in India's union territories. The governments of the union territories collect the UGST.

The type of GST that will be charged on different supplies is decided based on the location of the supplier and the supply destination.

What is the late fee under GST? 

According to the laws of GST, if you delay filing your GST returns, you will be liable to pay a late fee. The late fee is charged daily. So, if you delay your filing by five days, you will have to pay a late fee for those five days. Even if you are filing nil returns, a delay will result in you paying late fees. 

Table Caption
Turnover Late fee charged
Nil return under GSTR 3B/GSTR 1 Rs 50 per day with a maximum limit of Rs 10,000
Turnover up to Rs1.5 crore under GSTR 3B/GSTR 1 Maximum late fees of Rs 2,000
Turnover between Rs 1.5 crore to Rs 5 crore under GSTR 3B/GSTR 1 Maximum late fees of Rs 5,000
Turnover above Rs 5 crore under GSTR 3B/GSTR 1 Maximum late fees of Rs 10,000
Nil returns under GSTR 4 Maximum late fees of Rs 500
Other than nil returns under GSTR 4 Maximum late fees of Rs 2,000

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.

Table Caption
Particulars Interest Rate
Delayed GST payment 18% per annum
Undue or excess tax liability reduction 24% per annum
Undue or excess ITC claim 24% per annum

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.

Key takeaways 

An online late fee and interest calculator should be your go-to if you want to know about your late fee and interest on GST. They will give you the answer within a very short period. 

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