- Late fees are charged for delayed filing of GST returns.
- Interest is applicable on delayed tax payments.
- General penalties are imposed for incorrect tax filings, incorrect ITC claims, or failure to issue a valid tax invoice.
- GSTR-3B late fees are ₹50 per day, capped at ₹5,000 per return.
- GSTR-1 late fees are ₹200 per day, subject to a cap based on turnover.
- GSTR-9 late fees are ₹200 per day, with a maximum limit of 0.5% of turnover.
- Delays in GST return filing can lead to penalties.
- Errors in tax invoice compliance can result in ITC mismatches and disputes.
- Failure to reconcile ITC claims can lead to denied ITC claims.
- Inadequate record-keeping increases the risk of penalties.
- Manual processing and lack of automation increase the likelihood of errors.
- Automate invoice processing and reconciliation to reduce compliance risks.
- Leverage public APIs for invoicing to ensure compliance with electronic invoice submission standards.
- Implement invoice validation API to verify invoices before submission.
- Maintain comprehensive audit trails to be audit-ready.
Source: taxilla.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
