Late payment of Tax under GST
Late payment of Tax under GST
You had to pay your tax on due date, but you forgot. Now what? Will you be fined? Will you be penalized? What will happen now? A lot of confusion and apprehensions are there under GST. So let us see the provisions under GST that seek to punish the lazy taxpayers
Due date of payment of tax under GST is the 20th of next month for normal dealers. And for composite dealers, it is 18th of the succeeding quarter.
Interest on late payment - If a person fails to pay tax before or on due date, then interest is to be paid at the rate of 18%.
This interest will be charged on the tax unpaid calculated from the day tax becomes due to the day of payment.
In case a person claims excess input tax credit or claims excess reduction in his outward tax liability, he shall be liable to pay interest at 24% on such amount.
Penalty on late payment – If tax is short paid or unpaid for 3 months from the date when it became payable, a penalty of Rs 10,000 or 10% of tax short paid/unpaid, whichever is higher will be levied.
However, if it is proved that short payment/non-payment of tax was on account of fraud, penalty of Rs 10,000 or 100% of tax short paid/unpaid, whichever is higher will be levied.
