GST · Returns and compliance
What are the GST late fees and interest for late returns and payments?
Short answer
GSTR-1 and GSTR-3B carry a late fee of ₹50 a day (₹20 for a nil return), capped at ₹500 for nil returns and ₹2,000, ₹5,000 or ₹10,000 for others depending on turnover. The annual return GSTR-9 carries ₹50 to ₹200 a day, capped as a percentage of turnover. Tax paid late attracts interest at 18% a year on the net amount paid in cash, and credit wrongly availed and used attracts 18% too. Late fees must be paid in cash.
Late fee on monthly and quarterly returns (GSTR-1, GSTR-3B)
₹50 a day (₹25 CGST + ₹25 SGST), or ₹20 a day for a nil return, from the day after the due date to the date of filing, subject to these caps (CGST and SGST together, per return):
| Aggregate turnover in the previous year | Maximum late fee |
|---|---|
| Nil return (any turnover) | ₹500 |
| Up to ₹1.5 crore | ₹2,000 |
| ₹1.5 crore to ₹5 crore | ₹5,000 |
| Above ₹5 crore | ₹10,000 |
Late fee on the annual return (GSTR-9)
| Aggregate turnover in the year | Late fee a day | Maximum |
|---|---|---|
| Up to ₹5 crore | ₹50 | 0.04% of turnover in the state |
| ₹5 crore to ₹20 crore | ₹100 | 0.04% of turnover in the state |
| Above ₹20 crore | ₹200 | 0.5% of turnover in the state |
GSTR-9 is optional where turnover is up to ₹2 crore, so no late fee arises if you choose not to file it.
Interest (section 50)
- Tax paid late: 18% a year from the day after the due date until payment, on the part of the tax paid through the cash ledger. Tax set off against credit available in time does not attract interest.
- Credit wrongly availed and used: 18% a year from the date of use until it is reversed or paid. Credit availed but never used, with enough balance in the ledger throughout, attracts no interest.
- Interest is self-assessed: pay it with the return, or through DRC-03 if found later.
Points to remember
- Late fees and interest cannot be paid with input tax credit; they come from the cash ledger.
- Each return has its own fee. A delayed GSTR-3B usually also delays GSTR-1, so both may carry fees.
- The three-year bar: a return cannot be filed more than three years after its due date, so very old returns cannot be filed at all.
- Waivers are sometimes announced by notification for particular periods. Check before paying a large old fee.
Work out the amounts with the GST late fee calculator and the GST interest calculator.
Legal basis
- Section 47, CGST Act, 2017 (late fee) and the matching SGST provision
- Section 50, CGST Act, 2017 (interest)
- Notification Nos. 19/2021 and 20/2021-Central Tax (caps for GSTR-3B and GSTR-1); Notification No. 07/2023-Central Tax (GSTR-9)
Official sources
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