Consequences of Late Filing of GSTR-1 and GSTR-3B, GST Course in Delhi

Consequences of Late Filing of GSTR-1 and GSTR-3B

Filing GST returns such as GSTR-1 and GSTR-3B on time is crucial for every registered taxpayer in India. Delays or non-compliance can result in a series of financial, operational, and legal consequences.

Consequences of Late Filing of GSTR-1 and GSTR-3B,  Get Practical GST Course in Delhi, 110016, by SLA Consultants India, New Delhi

1. Late Fees and Interest

• Late Fees:

  • For both GSTR-1 and GSTR-3B, the late fee is ₹50 per day (₹25 CGST + ₹25 SGST) for each day of delay.

  • If you are filing a nil return, the fee is ₹20 per day (₹10 CGST + ₹10 SGST).

  • The late fee is capped at ₹5,000 per return.

• Interest:

  • In addition to late fees, interest at 18% per annum is charged on the outstanding tax amount until payment is made.

2. Operational Disruptions

• Blocking of E-Way Bill Generation:

  • If GSTR-3B is not filed for two consecutive periods, the generation of E-Way bills is restricted, hampering business logistics.

• Suspension and Cancellation of GST Registration:

  • Continuous default (typically six months) can lead to the suspension and eventual cancellation of GST registration, halting all taxable business operations.

  • During suspension, you cannot collect GST or claim Input Tax Credit (ITC), severely impacting business continuity.

3. Legal and Financial Consequences

• Show-cause Notices and Recovery Proceedings:

  • Non-filing may trigger a show-cause notice under Section 46 of the CGST Act.

  • The government can initiate recovery proceedings, including the attachment of bank accounts or property, under Section 79.

• Restriction on Input Tax Credit (ITC):

  • Delay in filing GSTR-1 restricts both you and your recipients from claiming ITC on the relevant invoices, increasing your tax burden and impacting your business partners.

• Ineligibility to File Subsequent Returns:

  • The GST portal will not permit filing of subsequent returns unless pending returns are cleared and late fees paid.

4. Practical Example

If a taxpayer files GSTR-3B ten days late, the late fee is ₹500 (₹250 CGST + ₹250 SGST). If it’s a nil return, the fee is ₹200 (₹100 CGST + ₹100 SGST). Interest is charged separately on any unpaid tax.

5. Impact on Business

• Business Standstill:

  • Suspension or cancellation of GST registration effectively stops all business activities, as you cannot legally operate or issue GST invoices.

• Reputation Risk:

  • Persistent non-compliance can damage business credibility with clients, vendors, and authorities.

Get Practical GST Course in Delhi (SLA Consultants India, New Delhi, 110016)

For professionals and business owners seeking to avoid such compliance issues, SLA Consultants India, New Delhi (110016) offers a practical GST Course in Delhi. This course covers:

• Real-world GST return filing (GSTR-1, GSTR-3B, etc.)

• Calculation and payment of late fees and interest

• Handling notices, penalties, and compliance strategies

• Practical training on GST portal navigation and documentation

Such training is invaluable for ensuring timely compliance, minimizing penalties, and maintaining smooth business operations.

Consequences of Late Filing of GSTR-1 and GSTR-3B,  Get Practical GST Course in Delhi, 110016, by SLA Consultants India, New Delhi

In summary:
Late filing of GSTR-1 and GSTR-3B leads to daily late fees, interest, operational restrictions, legal action, and potential business suspension. Practical GST courses, like those offered by SLA Consultants India in Delhi, equip participants with the skills needed to manage GST compliance efficiently and avoid these severe consequences.