Interest and Late fees are to be paid:

  • The interest levied is 18% per annum. This interest is calculated on the outstanding tax amount that is there to be paid. It needs to be calculated on the net tax liability that is mentioned in the ledger during the time of payment. The period is from the next day of the due date till the actual date of payment.
  • According to the CGST Act, the late fee fine is Rs. 100 per day per act. So, the scenario is Rs. 100 under CGST, and Rs. 100 under SGST, which summed up to Rs. 200 per day. But it should be noted that the maximum fee levied is Rs. 5000 per Act. There are no late fines for the IGST Act. For the return of GSTR-9/9C, the maximum late fee to be applied is 0.25% of the turnover in the state or Union Territory.
  • The late fee amount can also be reduced based on the relief schemes introduced by the government.

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