Non-filing of the GST annual return (GSTR-9) attracts a late fee of ₹100 per day under the CGST Act and an additional ₹100 per day under the SGST Act, totaling ₹200 per day of default. This penalty is capped at 0.5% of the taxpayer's turnover in the state or union territory.
As per Section 47(2) of CGST Act, 2017, any registered person who fails to furnish Annual Return by the due date shall be liable to pay a late fee of R 100/- per day subject to maximum of 0.25% of his turnover in the State or Union Territory.
Singapore GST returns must be submitted electronically through myTax Portal. Late submission of a GST return will result in a penalty of SGD 200 with a further SGD 200 for every month a return is not filed, up to a maximum of SGD 10,000.
If you (a regular taxpayer) does not file a return for a continuous period of six months, then the GST Officer may cancel the GST registration of such person. Before cancellation, the officer will issue a Notice seeking your clarification.
You face a penalty when you file your GST/HST return late if you owe money. The penalty equals 1% of your unpaid amount plus 0.25% of that amount for each full month your return is late. The maximum penalty period is 12 months. After that, no additional monthly charges apply.
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.
Fraud Penalties under GST
Here are the key penalties for fraud under GST law: In cases where tax evasion or fraud is proven, the penalty may be monumental, 100% to 300% of the amount of tax evaded. Even in cases where the percentage of tax calculated is less, a minimum penalty of ₹10,000 is imposed.
GST Annual Return Penalty
Failure to file GSTR-9 within the stipulated due date attracts a late fee as stipulated in Section 47(2) of the CGST Act, 2017. Here is a breakdown of the late fee: ₹100 per day under the CGST Act.
If you don't file an annual report, your business risks late fees, suspension of its right to do business, and eventually administrative dissolution (being shut down by the state), which can lead to losing your liability protection, making it hard to get financing or contracts, and having your business name taken by others. Reinstatement is often possible but involves back payments, penalties, and extra paperwork, according to NCH inc..
When can the GSTIN get suspended? A taxpayer's GST registration or GSTIN can be suspended when they fail to file their GST returns for six consecutive months as monthly filers and for two consecutive quarters as quarterly filers.
In case of failing to file, a company and the directors are subjected to a penalty of Rs. 1000 per day to the maximum of Rs. 10,00,000. The CEO of the company managing director or the director who is responsible, in the absence of them, or in case there is no director as such, all directors need to pay a charge of Rs.
Non/Late Payment
A 5% penalty will be levied on the amount of tax unpaid by the due date and an additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (capped at a maximum of 50% of the outstanding tax) may also be imposed.
Example: If your GST liability is ₹50,000 and payment is delayed by 20 days: Interest = ₹50,000 × 18% × 20 ÷ 365 = ₹493.
Taxpayers Liable to Deduct TDS under GST
Entities such as government departments or notified persons who deduct tax at source viz., (TDS) under GST provisions are exempted from annual return filing. Their compliance is limited to TDS return filing.
The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return.
Monthly GST Returns
Businesses with a turnover above the prescribed limit must file returns every month. The GST return turnover limit is ₹5 crore in the preceding financial year. If your turnover crosses this mark, you're required to file both GSTR-1 and GSTR-3B monthly.
If you don't file an annual report, your business risks late fees, suspension of its right to do business, and eventually administrative dissolution (being shut down by the state), which can lead to losing your liability protection, making it hard to get financing or contracts, and having your business name taken by others. Reinstatement is often possible but involves back payments, penalties, and extra paperwork, according to NCH inc..
Maximum Late Fee for Annual Return (GSTR-9)
The late fee is capped at 0.25% of the taxpayer's turnover in the state or union territory per Act (i.e., up to 0.5% total for both CGST and SGST). For example, if turnover is ₹1 crore, the maximum late fee can be up to ₹50,000 (₹25,000 under CGST and ₹25,000 under SGST).
If you do not complete your annual return, the Registrar may remove your company from the register, which means it would cease to exist. This could have serious consequences. For example: Your business would have difficulty obtaining credit, goods or services.
Form is an annual return to be filed once, for each financial year, by the registered taxpayers who were regular taxpayers, including SEZ units and SEZ developers. The taxpayers are required to furnish details of purchases, sales, input tax credit or refund claimed or demand created etc. in this return.
According to the latest update, a late fee of ₹50 per day is now applicable, capping at a maximum of ₹2,000. If the tax liability is nil, the maximum late fee is reduced to ₹500. Previously, a late fee of ₹200 per day was imposed if GSTR-4 was not filed by the due date, with the maximum late fee not exceeding ₹5,000.
Late filing penalties for goods and services tax (GST)
There is a late filing penalty of $50 if you're on the payments basis. There is a $250 penalty for late filing on the hybrid or invoice basis. These penalties are usually due on the 28th day of the month after the return was due.
Here's a breakdown of the typical expenses for small businesses: GST Return Fees: Rs. 500 to Rs. 1,000 per month for online filing via the GST portal.
Rule 33 – Value of supply of services in case of pure agent
(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.
Late filing of Income tax return will attract penalty u/s 234F up to Rs. 5,000, late filing interest at the rate of 1% per month (Section 234A) on the tax payable, delay in refund, not providing interest on refund @ 0.5% per month, inability to carry forward the losses.