GST Late fee in Sep return is carry forward of late fee of August -Example and Calculations

GST Late fee being observed in September return is actually a carry forward of late fee of the return filed for the month of August.

Any late fee left unpaid from previous tax period will be carried forward to next tax period . The calculation is done as under:

(Day of filing of previous month’s return  minus day of submission of previous Month’s return ) x 2  Tax Head : CGST & SGST) x 100

For Example:

Return for the month of August was submitted on 22^nd September but filed on 26^th September. In this case, the system has worked out the late fee of Rs. 400/- (2 x 200/-) up to the date of submission. This late fee of Rs. 400/- is populated to table 6.1 of GSTR-3B for payment.

At the time of setting off the liability , payment of Rs. 400/- only will be accounted for.

Suppose, the tax payer does not file return on 22^nd September (the day of submission) but comes to file the return on 26^th September. Since, the return is filed on 26^th September, the tax payer is liable to pay late fee for 6 days (26^th September – 20^th September) but the tax payer has paid late fee along with return for two days only i.e. the difference between the due date of filing and the date of submission.

Thus the tax payer   is liable to pay a late fee for six days (26 – 20) but he has paid late fee for two days only.

Therefore, the late fee of remaining four days (26 – 22) will be carried forward to the next month’s return i.e. September 2017.