What is Penalty?
Penalty is a legal consequence imposed on someone for breaking the law or violating a contractual agreement. Penalties can take many forms, such as a fine, imprisonment, or the loss of a privilege. It varies widely according to the situation and applicable laws. In criminal cases, penalties may range from fines to imprisonment; in civil cases, penalties commonly include monetary damages assessed to compensate victims of wrongdoing.
GST penalty is a fee imposed by the government on taxpayers who fail to pay Goods and Services Tax (GST) by the due date. It is calculated as a percentage of the amount outstanding, with different rates for different types of taxpayers.
The GST penalty rate for individuals and small businesses is 5% per month on the amount outstanding. Large businesses pay a higher rate of 10% per month on their overdue GST payments. In addition to this, late payment fees may be charged. These fees vary depending on the state or territory in which you operate.
Penalty vs Fine
A penalty is a consequence imposed on someone or something that has done wrong, whereas a fine is an amount of money that must be paid due to law-breaking. Penalties can be financial or non-financial, while fines are almost always monetary. It is also important to note that punishments issued by law enforcement or governmental agencies will often include both a penalty and a fine.