GST resources
GST Late Fees and Interest
Filing a GST return late costs twice: a late fee for every day of delay, and interest on any tax paid late. Both are paid in cash. Here are the amounts as they stand, with a worked example.
Late fee versus interest
A late fee is a fixed charge for each day a return is filed after its due date, under section 47 of the CGST Act. It applies even when no tax is due, which is why nil returns also attract it. Interest, under section 50, is compensation for tax paid late and is worked out on the tax amount for the number of days of delay.
Both must be paid from the electronic cash ledger; input tax credit cannot be used. The late fee is charged under the CGST Act and the SGST Act separately, so the per-day amounts below are the total of the two halves.
Late fees for monthly and quarterly returns
| Return | Per day of delay | Maximum per return |
|---|---|---|
| GSTR-3B or GSTR-1 with nil tax / nil supplies | ₹20 (₹10 CGST + ₹10 SGST) | ₹500 |
| GSTR-3B or GSTR-1, turnover up to ₹1.5 crore | ₹50 (₹25 + ₹25) | ₹2,000 |
| GSTR-3B or GSTR-1, turnover above ₹1.5 crore up to ₹5 crore | ₹50 (₹25 + ₹25) | ₹5,000 |
| GSTR-3B or GSTR-1, turnover above ₹5 crore | ₹50 (₹25 + ₹25) | ₹10,000 |
| GSTR-4 (composition annual return), nil | ₹50 (₹25 + ₹25) | ₹500 |
| GSTR-4, others | ₹50 (₹25 + ₹25) | ₹2,000 |
Turnover means aggregate turnover in the preceding financial year. Caps apply from the June 2021 tax period under Notification Nos. 19/2021 and 20/2021-Central Tax.
Late fee for the annual return (GSTR-9)
| Aggregate turnover in the year | Per day of delay | Maximum |
|---|---|---|
| Up to ₹5 crore | ₹50 (₹25 + ₹25) | 0.04% of turnover in the state |
| Above ₹5 crore up to ₹20 crore | ₹100 (₹50 + ₹50) | 0.04% of turnover in the state |
| Above ₹20 crore | ₹200 (₹100 + ₹100) | 0.5% of turnover in the state |
From financial year 2022-23, under Notification No. 7/2023-Central Tax. Businesses with turnover up to ₹2 crore are exempt from filing GSTR-9 from 2024-25.
Interest
- 18% a year on tax paid late, counted from the day after the due date to the day of payment
- Charged on the part of the tax paid in cash, not on the part covered by input credit available in time
- 18% a year on input credit wrongly claimed and used, from the date it was used until it is reversed or paid
- For QRMP filers, interest applies if the tax for the first two months of the quarter is not paid by the 25th through PMT-06
- Interest is not waived by paying the late fee, and the late fee is not waived by paying interest
Worked example
Sri Lakshmi Stores, a kirana in Mysuru with aggregate turnover of ₹48 lakh in 2025-26, files monthly. Its GSTR-1 for September 2026 was due on 11 October and its GSTR-3B on 20 October. The owner was travelling and filed both on 4 November.
GSTR-1 was 24 days late: 24 × ₹50 = ₹1,200 (₹600 CGST + ₹600 SGST), under the ₹2,000 cap. GSTR-3B was 15 days late: 15 × ₹50 = ₹750 (₹375 + ₹375). The net tax paid in cash for September was ₹24,000, so interest is ₹24,000 × 18% × 15 ÷ 365 = ₹177.53, paid as ₹178. Total cost of the delay: ₹1,200 + ₹750 + ₹178 = ₹2,128.
Had September been a nil month, the GSTR-3B fee would have been 15 × ₹20 = ₹300 and there would be no interest.
Other consequences of filing late
- GSTR-1 cannot be filed while an earlier GSTR-3B is pending
- E-way bill generation can be blocked when returns are not filed for the notified number of periods
- Continued non-filing can lead to suspension and cancellation of registration
- Your buyers lose input credit until your GSTR-1 is filed, which costs you customers
- Returns can no longer be filed once three years have passed from their due date
How it shows up in returns
The portal calculates the late fee for GSTR-3B and adds it to the next return, and system-computed interest appears in table 5.1 of GSTR-3B. You can edit interest if you have reason to, but the figure you declare should be what the law requires.
How TripleBill helps
TripleBill shows GSTR-1 and GSTR-3B figures for any month as soon as the month closes, so returns are not held up waiting for the books. Record late fees and interest as an expense when you pay them.
This page is general information about GST in India, not tax advice. Rates, thresholds and rules change; confirm with the GST portal or a chartered accountant before acting.
Last reviewed and sources
Last reviewed: November 2026. Facts on this page were checked against:
- CGST Act, 2017, sections 47 and 50
- Notification No. 76/2018-Central Tax as amended by Notification No. 19/2021-Central Tax (GSTR-3B late fee)
- Notification No. 4/2018-Central Tax as amended by Notification No. 20/2021-Central Tax (GSTR-1 late fee)
- Notification No. 21/2021-Central Tax (GSTR-4 late fee)
- Notification No. 7/2023-Central Tax (GSTR-9 late fee)
- Notification No. 13/2017-Central Tax as amended (interest rates)
- GSTN advisories on the three-year bar on filing returns
Frequently asked questions
Is there a late fee for a nil GSTR-3B?
Yes: ₹20 a day, capped at ₹500 per return.
Can I pay late fees with input tax credit?
No. Late fees and interest are paid in cash through the electronic cash ledger.
Is there a late fee on CMP-08?
CMP-08 is a statement for paying tax; no late fee is commonly levied on it, but interest applies on tax paid late. The GSTR-4 annual return has its own late fee.
How is GST interest calculated?
Tax paid late × 18% × days of delay ÷ 365, on the portion paid in cash.
Are late fees ever waived?
The government has notified amnesty schemes and waivers in the past. They are one-off; do not plan around them.
What if a due date is extended?
Then the late fee and interest start from the extended date. Extensions are notified by CBIC and announced on the GST portal.
Is the late fee an expense in my books?
Yes. Record it under penalties or late fees; it is not GST and cannot be claimed as input credit.
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