GSTR-3B- Manner of Calculation of Interest & Late Fees for delay in filing

As we are all aware that the Government has come up with few Notifications on 24th June 2020, for extending the various due dates for filing GSTR -3B return and GSTR 1 return for various months to provide relaxation in view of spread of Novel Corona Virus (COVID-19), in connection to the Notifications the government has issued Circular No. 141/11/2020 – GST dated 24th June 2020, which has clarified the Manner of Calculation of Interest and Late fees for delay in filing of GSTR-3B return

Manner of calculation of interest for taxpayers having aggregate turnover above Rs. 5 Cr

As Per Notification No. 51/2020- Central Tax, dated 24-06-2020, Interest will be calculated for the delay in filing of GSTR – 3B returns as under

1. For 1st 15 days delay in filing return after the DUE date of GSTR-3B interest will be NIL

2. After 15 days delay in filing of return till 24-06-2020 interest will be charged @ 9% p.a.

3. And after 24-06-2020 interest will be charged at 18% p.a.

Instead of Notification No.31/2020- Central Tax, dated 03.04.2020, which states that interest will be calculated as under

1. If the return is filed within 15 days interest from the DUE date of GSTR-3B interest will be NIL

2. If the return is filed on or before 24-06-2020 interest will be charged @ 9% p.a.from the due date of return

3. If the return is filed after 24-06-2020 interest will be charged @ 18% p.a. from the due date of the return

The Notification No. 51/2020 dated 24-06-2020, can be better understood with an illustration

For Example:- The registered person has delayed in filing GSTR-3B for the month of March 2020 (the due date for the return is 20-04-2020) the calculation of interest is as follows

GSTR-3B- Manner of Calculation of Interest and Late Fees for delay in filing

Sl. No.	Date of filing GSTR-3B	No. of days of delay	Interest
1	02.05.2020	12	Zero interest
2	20.05.2020	30	Zero interest for 15 days, thereafter interest rate @9% p.a. for 15 days
3	20.06.2020	61	Zero interest for 15 days, thereafter interest rate @9% p.a. for 46 days
4	24.06.2020	65	Zero interest for 15 days, thereafter interest rate @9% p.a. for 50 days
5	30.06.2020	71	Zero interest for 15 days, thereafter interest rate @9% p.a. for 50 days and interest rate @18% p.a. for 6 days

Manner of calculation of interest for taxpayers having aggregate turnover below Rs. 5 Cr.

As Per Notification No. 52/2020- Central Tax, dated 24-06-2020, Interest will be calculated for delay in filing of GSTR-3B returns as under for the months of Feb, March, April, May, June, July2020

1. TILL the specified dates interest will be NIL
2. After specified dates till 30-09-2020 interest will be charged @ 9% p.a.
3. And after 30-09-2020 interest will be charged @ 18% p.a.

Instead of Notification No.31/2020- Central Tax, dated 03.04.2020, which states that the interest for delay of filing of GSTR-3B returns will be calculated as under for the months of Feb, March, April 2020

1. If the return is filed on or before 24-06-2020 interest will NIL
2. If the return is filed after 24-06-2020 interest will be charged @ 18% p.a. from the due date of the return

The Notification No. 51/2020 dated 24-06-2020, can be better understood with an illustration

For Example:- The registered person has delayed in filing GSTR-3B for the month of March 2020 (the due date for the return is 22-04-2020) & for the month of June 2020 (the due date for the return is 22-07-2020) the calculation of interest is as follows

S. No.	Tax period	Applicable rate of interest	Date of filing GSTR-3B	No. of days of delay	Interest
1	March, 2020	Nil till the 3rd day of July, 2020, and 9 per cent thereafter till the 30th day of September, 2020	22.06.2020	61	Zero interest
2			22.09.2020	153	Zero interest for 72 days, thereafter interest rate @9% p.a. for 81 days
4			22.10.2020	183	Zero interest for 72 days, thereafter interest rate @9% p.a.for89days and interest rate @18% p.a. for 22 days
4	June, 2020	Nil till the 23rd day of September, 2020, and 9 per cent thereafter till the 30th day of September, 2020	28.08.2020	37	Zero interest
5			28.09.2020	68	Zero interest for 63 days, thereafter interest rate @9% p.a. for 5 days
6			28.10.2020	98	Zero interest for 63 days, thereafter interest rate @9% p.a. for 7 days and interest rate @18% p.a. for 28 days

Manner of calculation of late fee for delay in filing GSTR-3B return

For delay in filing of GSTR-3B return a conditional waiver was given for the month of Feb, March & April 2020 vide Notification No. 32/2020 dated 03-04-2020

Now the Government, vide notification No. 52/2020- Central Tax, dated 24.06.2020 has provided the revised dates for conditional waiver of late fee for the months of February, March and April, 2020 and extended the same for the months of May, June and July, 2020 for the small taxpayers.

It is even clarified that the waiver of late fee is conditional to filing the return of the said tax period by the dates specified in the said notification. In case the returns in FORM GSTR- 3B for the said months are not furnished on or before the dates specified in the said notification, then late fee shall be payable from the due date of return, till the date on which the return is filed.