Late Fee on Late Return of 3B

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Accounting Home Services (Querist)
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31 August 2022 What I understand is the Maximum Late fee of GSTR 3B late Return is Rs 2000 But currently system calculated the basis on no of late days .

Kindly advice

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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09 July 2024 Here's a detailed breakdown to clarify how the late fee for GSTR-3B is calculated, considering your current situation:

### GSTR-3B Late Fee Calculation

1. **Standard Late Fee Rates:**
- **Nil return:** ₹20 per day (₹10 CGST + ₹10 SGST)
- **Other than Nil return:** ₹50 per day (₹25 CGST + ₹25 SGST)

2. **Number of Days Late:** Approximately 1500 days

### Without Amnesty Scheme

If there is no amnesty scheme or special relief applied, the calculation would be as follows:

- **Nil return:** ₹20 per day * 1500 days = ₹30,000
- **Other than Nil return:** ₹50 per day * 1500 days = ₹75,000

### With Amnesty Scheme (if applicable)

The GST Council has introduced amnesty schemes in the past which cap the late fee for delayed returns. As of recent updates, the late fee for GSTR-3B is capped under certain conditions:

- **For Nil returns:** Capped at ₹500 per return (₹250 CGST + ₹250 SGST)
- **For other than Nil returns:** Capped at ₹1,000 per return (₹500 CGST + ₹500 SGST)

### Current System Calculation

If the GST portal is still calculating the late fee based on the number of late days without applying the amnesty caps, you might see a significantly higher late fee.

### Steps to Verify and Resolve

1. **Check for Latest Notifications:**
- Verify if there are any recent notifications from the GST Council regarding the capping of late fees for past returns.

2. **Contact GST Helpline:**
- Reach out to the GST helpline or support center to confirm if the capping is automatically applied when you file late returns.

3. **Filing Under Amnesty:**
- If an amnesty scheme is applicable, ensure that you are filing your return within the specified period to benefit from the reduced late fee.

4. **Manual Calculation and Payment:**
- If the system has not automatically applied the cap, you might need to manually calculate the capped late fee and ensure the correct amount is paid. This might involve contacting the GST office for rectification.

### Conclusion

If the amnesty scheme with the capped late fee of ₹500 (Nil return) or ₹1,000 (other returns) is applicable and in effect, you should ideally only need to pay the capped amount. However, if the system is still calculating based on the standard late fee rates, it would be wise to confirm with the GST authorities or helpline to correct the late fee to the capped amount.

This ensures you are not overpaying due to system discrepancies.

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