Question

What is the Provision of Penalty on Delay Fiing of GSTR-1? How can we compute the Interest on Late Payment of GST and Offset the liability of Interest with GST Portal?

Answer

For delay in filing of GSTR-1 late fee will be levied i.e. Rs 100/- for every day during which such failure continues subject to a maximum amount of five thousand rupees, however Notification No. 04/2018- Central tax waives the amount of late fee payable by any registered person for failure to furnish the details of outward supplies for any month/quarter in FORM GSTR - 1 by the due date under section 47 of the said Act, which is in excess of Rs.50 per day (Rs. 25 in central tax + Rs. 25 in state tax) during which such failure continues:
Provided that where there are no outward supplies in any month/quarter, the amount of late fee payable by such registered person for failure to furnish the said details by the due date under section 47 of the said Act shall stand waived to the extent which is in excess of Rs.20 per day (Rs. 10 in central tax + Rs. 10 in state tax) during which such failure continues.
Further provision regarding Interest on late payment of GST is specified in section 50 of CGST Act that interest shall be computed for the period from the day succeeding the day on which such tax was due to be paid (i.e. from due date of relevant month GSTR-3B) @ 18%.

However Interest and late fee is not paid by offsetting from E Credit ledger rather it is required to be paid through E Cash ledger only as per section 49 of CGST Act.

For late filling penalty may be imposed but their are chances of waiver also. (Reply dt. 05/12/2018)