Late GST return filing can create unnecessary financial and administrative problems.
Under the CGST Act, late filing of specified returns can attract late fees, while delayed payment of tax can attract applicable interest.
Possible consequences
Depending on the situation, businesses may face:
- Late fees
- Interest on delayed tax payment
- Compliance notices
- Difficulties with subsequent filing
- Reconciliation complications
The CGST Act also provides that a registered taxpayer generally cannot furnish a return for a tax period when previous required returns remain unfurnished.
How to avoid late filing
Create a compliance calendar and complete data preparation several days before the actual deadline.
