GST Late Fee & Interest — Rates & Calculation
Updated June 2026 · VerifiedWhat Is the Late Fee for GST Returns?
Under Section 47 of the CGST Act, a late fee is charged for every day of delay beyond the due date of a GST return. The fee is levied separately under CGST and SGST/UTGST, so the combined late fee is double the per-act amount.
| Return | Frequency | Late Fee / Day | Maximum Cap |
|---|---|---|---|
| GSTR-1 | Monthly / Quarterly | ₹50 (₹20 nil) | ₹10,000 (₹500 nil) |
| GSTR-3B | Monthly / Quarterly | ₹50 (₹20 nil) | ₹10,000 (₹500 nil) |
| GSTR-4 | Annual (Composition) | ₹50 (₹20 nil) | ₹2,000 |
| GSTR-5 | Monthly (NRTP) | ₹50 (₹20 nil) | ₹10,000 (₹500 nil) |
| GSTR-5A | Monthly (OIDAR) | ₹50 (₹20 nil) | ₹10,000 (₹500 nil) |
| GSTR-6 | Monthly (ISD) | ₹50 | ₹10,000 |
| GSTR-7 | Monthly (TDS) | ₹50 (₹20 nil) | ₹5,000 |
| GSTR-8 | Monthly (TCS) | ₹50 (₹20 nil) | ₹5,000 |
| GSTR-9 | Annual | ₹200 | 0.5% of turnover in state |
| GSTR-9C | Annual (Reconciliation) | ₹200 | 0.5% of turnover in state |
What Is the Interest Rate on Late GST Payment?
Under Section 50 of the CGST Act, interest is charged on the net tax liability (after adjusting ITC) as follows:
- 18% per annum – on tax paid after the due date.
- 24% per annum – on excess or wrongful ITC claimed and utilised.
Interest is calculated from the day after the due date until the actual date of payment. It is computed on a net cash liability basis (i.e., only on the amount payable through the electronic cash ledger, not on the portion offset by ITC).
How to Calculate GST Late Fee and Interest?
Example: A taxpayer files GSTR-3B for April 2026 on 10 June 2026 instead of 20 May 2026 — a delay of 21 days. Net tax payable in cash is ₹1,00,000.
- Late fee: 21 days × ₹50 = ₹1,050 (₹525 CGST + ₹525 SGST)
- Interest: ₹1,00,000 × 18% × 21/365 = ₹1,036 (approximately)
- Total penalty: ₹1,050 + ₹1,036 = ₹2,086
How to Reduce GST Late Fees?
The GST Council periodically announces amnesty schemes that reduce or waive late fees for past-period returns. To minimise late fees:
- Set calendar reminders for GST return due dates.
- File nil returns on time even if there is no business activity.
- Use the QRMP scheme if eligible (turnover up to ₹5 crore) to reduce filing frequency.
- Take advantage of amnesty schemes announced by the government.
- Automate return preparation using GST-compliant accounting software.
What Are the Consequences of Not Paying Late Fee?
- The late fee is auto-computed and added to your next return — you cannot file without paying it.
- Persistent non-compliance can lead to GST registration cancellation.
- Outstanding dues may be recovered under Section 79 of the CGST Act.
Frequently Asked Questions
Is GST late fee charged on IGST as well?
No. Late fee is levied only under CGST and SGST/UTGST. There is no separate late fee under IGST. So the total late fee is ₹25 CGST + ₹25 SGST = ₹50 per day.
Can I pay GST late fee from my ITC balance?
No. Late fee must be paid in cash through the electronic cash ledger. It cannot be adjusted against Input Tax Credit.
Is interest charged on the gross tax or net tax liability?
Interest is charged on the net cash tax liability — i.e., the amount payable after setting off eligible ITC. This was clarified by the amendment to Section 50 effective from 01-Sep-2020 (applied retrospectively from 01-Jul-2017).
What is the late fee for filing GSTR-9 after the due date?
The late fee for GSTR-9 is ₹200 per day (₹100 CGST + ₹100 SGST), subject to a maximum of 0.5% of the taxpayer’s turnover in the state or union territory.
Can the GST department waive late fees?
Yes. The government can waive or reduce late fees through notifications, usually announced during GST Council meetings as part of amnesty schemes for specific return periods.
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