What are the GST Filing Penalties?

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. As per the GST laws, it is mandatory for registered businesses to file their GST returns on time. Failing to do so can result in various penalties and fines. In this blog post, we will discuss the GST filing penalties in detail.

Late Filing of GST Returns

The GST laws mandate the filing of returns within the specified due dates. If a registered business fails to file their returns on time, they are liable to pay a late fee of Rs. 50 per day of delay, subject to a maximum of Rs. 5,000. Additionally, the taxpayer will also be charged interest at the rate of 18% per annum on the amount of tax payable.

Incorrect Filing of GST Returns

If a registered business files an incorrect or false GST return, they may have to pay a penalty of Rs. 10,000 or 10% of the tax payable, whichever is higher. However, if the taxpayer rectifies the error within the stipulated time, the penalty may be reduced to Rs. 1,000.

Non-Filing of GST Returns

If a registered business fails to file their GST returns for a consecutive period of three months, they may lose their GST registration. Additionally, they may also be liable to pay a penalty of Rs. 10,000 or 10% of the tax payable, whichever is higher.

In conclusion, it is essential for registered businesses to file their GST returns on time and ensure that the information provided is accurate. Any delay or incorrect filing may result in hefty penalties and fines. Hence, it is advisable to seek the assistance of a qualified professional for GST compliance. Stay tuned for more updates on GST and its implications on businesses.