Interest on Late Payment of GST: If the taxpayer is unable to pay GST on time due to some reason, an interest is charged on the GST payment. An interest on late payment of GST is of 18% per annum and will be charged for the days after the due date.

Penalty on Missing the GST Due Date: When a person breaks any law, rule or contract a ‘penalty’ is imposed as punishment. In GST, if any person or business violates any provision prescribed in the GST Act or rules, would also be subject to penalty. Therefore, upon non –filing of GST returns or missing out the GST due dates, the GST law prescribes a general penalty. The maximum penalty that may be imposed is Rs.5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty. Further, the period of interest payment will be calculated starting on the filing deadline and ending on the day that the payment is actually paid.

Our Tax experts help you navigate interest and penalty provisions under GST, ensuring timely payments and compliance. We assist in calculating and paying interest and provide guidance on penalty waiver and reduction, minimizing your tax liabilities and avoiding unnecessary penalties.