Quick Answer: How Do I Avoid GST Penalty?

What happens if you do not pay GST?

An offender not paying tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs.

10,000.

Consider — in case tax has not been paid or a short payment is made, a minimum penalty of Rs 10,000 has to be paid.

The maximum penalty is 10% of the tax unpaid..

Is GST penalty refundable?

Disposes off or tampers with any goods that have been detained, seized, or attached under this Act. GST Penalty at a reduced rate of 10% of the tax involved subject to minimum of Rs. … Any registered person who supplies any goods or services by whom any tax has not been paid or short-paid or erroneously refunded, or.

How do I check my GST penalty?

How to track GST payment status online?Go to the GST Portal. To track payment you don’t have to login. … Enter in your GSTIN and the CPIN. Click Track Status. … Step 3.1.1- Status- ‘PAID’Step 3.1.2. If it is showing as paid then you can download the receipt. … Step 3.2.1 Status- ‘NOT PAID’ … Situation 1. … Situation 2. … Situation 3.

How is GST late fee calculated?

Late fees for GSTR-9 and GSTR-9A is Rs. 200 (Rs. 100 for CGST and Rs. 100 for SGST) per day up to a maximum of 0.50% (0.25% for CGST and 0.25% for SGST) of turnover.

How much is the general penalty under GST?

Common Offences Under GST And Their PenaltiesType of offenceAmount of penaltyPenalty for not issuing invoicePenalty 100% of tax due or Rs. 10,000 -whichever is higherPenalty for not registering under GSTPenalty 100% of tax due or Rs. 10,000 -whichever is higherPenalty for incorrect invoicingPenalty of Rs. 25,0006 more rows•Jun 4, 2020

Is it mandatory to file GST return?

Return filing is mandatory under GST. Even if there is no transaction, you must file a Nil return. You cannot file a return if you do not file previous month/quarter’s return. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.

How do you avoid GST penalty?

Tips to Avoid Penalties on GST – Late Fees and InterestOrder of GST Payment.Interest on GST Late Payments.Interest Payable on GST Refund.Penalty on Wrong GST Credit Use.The Bottom Line.

What is the penalty for late payment of GST?

The law has fixed a maximum late fees of Rs 5,000. This means that in any case, the maximum late fees that can be charged by the Government is Rs 5,000 each return being filed under each Act. The law has fixed a maximum late fees of Rs 5,000.

What is the maximum penalty for GST?

25,000 rupeesA penalty of up to 25,000 rupees applies to any offense of the GST law that lacks a specifically prescribed penalty [Sec 125]. Compared to earlier tax laws (i.e., Excise Duty, Service Tax, VAT), the GST tax regime contains a substantial increase in the maximum penalty levied.

Is GST leviable on penalty?

Circular no 102/21/2019-GST dated 28th June 2019 Penal interest charged on delayed payment for supply of goods and services will be included in the value of supply and will stand liable for GST. Whereas penal interest charged on the delayed payment of loan repayment will be exempt under GST.

How do I file a GST return without a late fee?

Scheme for reduction of Late fee under GST:Such relief is available only for Form GSTR3B.No Late fee in case of Nil return.Scheme applies to all returns pertaining to the period July 2017 to July 2020 when filed between 1st July, 2020 and 30th September, 2020.Maximum late fee is capped at Rs.

Can we file GST return without payment?

Under the GST law, the filing of return without payment of taxes shall not be considered as a valid return. … In other words, unless the supplier has paid the entire self-assessed tax and filed his return and the recipient has filed his return, the ITC of the recipient would not be confirmed.