A late GST return: what it costs and how to catch up
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The penalty is 1% of the amount owing plus a quarter of that for each complete month, up to 12 months. Nothing owing means no penalty.
What a late GST return costs
The CRA calculates the late-filing penalty as A + (B × C). A is 1% of the amount owing. B is 25% of A. C is the number of complete months the return is overdue, up to a maximum of 12. In plain terms, 1% of what you owe, plus another 0.25% of it for each complete month.
The penalty applies if you file after the due date and owe money. No penalty is charged if you owe nothing or the CRA owes you a refund. This is the late-filing penalty only. Interest and any other charge on an unpaid amount are separate, and the CRA’s pages set them out. A fictional example: CAD 2,000 owing and a return filed 4 complete months late. A is CAD 20, B is CAD 5, and 4 months makes CAD 20, so the penalty is CAD 40. The figures are invented.
Which due date applies
Your due date follows the reporting period the CRA assigned you, and it can differ from your PST period. The guide on GST registration explains the periods, and the GST and PST page sets the two taxes side by side.
Catching up on missed periods
- List every reporting period since you registered, and mark the ones with a filed return.
- Reconcile the books for each missed period. A return is only as accurate as the records it is built from.
- File each overdue return. Each carries its own amount owing, so the penalty is worked out period by period.
- Pay what is owing, and ask the CRA about a payment arrangement if you cannot pay in full.
PST is filed with the province and has its own rules and dates. Filing GST late does not file PST, and the reverse is also true.
If you had a reason
The CRA can cancel or waive penalties and interest in some circumstances beyond your control, such as illness, a disaster or financial hardship. You apply on Form RC4288, with supporting documents, and the CRA decides each request.
What is the penalty for filing GST late?
1% of the amount owing, plus 25% of that 1% for each complete month the return is overdue, up to 12 months.
Is there a penalty for a late return when I owe nothing?
No penalty is charged if you owe nothing or the CRA owes you a refund.
Does filing GST late also make my PST late?
No. PST is filed with the province, separately and on its own dates.
What if I missed several periods?
File each overdue return. The penalty is worked out on the amount owing on each one.
GST registration and input tax credits →
GST and PST in BC, side by side →
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