Late Fees & Interest on delayed tax payment: A Taxpayers Guide. The late payment charges / interest and penalty are as provided under the GST Laws and to be strictly complied by all Taxpayers including Small Entrepreneurs to avoid incurring huge losses due to delay in compliance. This includes understanding the GST Penalty and Late Fees for GSTR-1 & GSTR-3B, which should be a priority for every taxpayer.
According to the GST law, late fee is to be calculated on a day to day basis. Late fee for returns such as GSTR-1 and GSTR-3B shall be Rs. 50 per day (Rs. 25 each under CGST and SGST). Even Nil returns, to be filed by taxpayers who have had no transactions during the tax period, shall attract late fee of Rs. 20 per day. This emphasizes the importance of being aware of GST Penalty and Late Fees for GSTR-1 & GSTR-3B in order to avoid unnecessary costs.
While the late fee is the biggest problem for the taxpayer, they would also have to incur interest on the taxes that were payable within time and were paid in a delayed manner. The interest is being charged at the rate of 18% p.a. on the outstanding tax amount. However, this rate can go up to 24% p.a. in certain situations such as excess ITC claimed by the taxpayer or wrongful reduction in tax liability by the taxpayer. Therefore, understanding the GST Penalty and Late Fees for GSTR-1 & GSTR-3B is crucial for all businesses.
According to tax experts, even if there are no transactions recorded by a taxpayer during a tax period, then they are still required to file returns. If the taxpayer fails to file the returns, then there are late filing fees to be paid, and problems of compliance would arise. This further highlights the significance of being informed about GST Penalty and Late Fees for GSTR-1 & GSTR-3B to prevent issues.
Amount of late fee is auto calculated in the return and is required to be paid by debiting it from electronic cash ledger. This late fee cannot be paid by utilizing Input Tax Credit. Also it is mandatory to clear all pending late fee for previous return(s) to be able to file subsequent return(s).
It is essential for taxpayers to be aware of GST Penalty and Late Fees for GSTR-1 & GSTR-3B to ensure they stay compliant and avoid costly penalties.
Understanding the GST Penalty and Late Fees for GSTR-1 & GSTR-3B is not just a matter of compliance, but also a way to protect your business from financial loss.
It is important for all taxpayers to recognize the significance of the GST Penalty and Late Fees for GSTR-1 & GSTR-3B when planning their financial strategies.
Not understanding the GST Penalty and Late Fees for GSTR-1 & GSTR-3B can lead to unexpected expenses that can impact cash flow.
Being proactive about the GST Penalty and Late Fees for GSTR-1 & GSTR-3B can save taxpayers from unnecessary complications.
Taxpayers must prioritize understanding the GST Penalty and Late Fees for GSTR-1 & GSTR-3B as part of their compliance strategy.
Knowledge of the GST Penalty and Late Fees for GSTR-1 & GSTR-3B helps businesses avoid pitfalls associated with late filings.
Awareness of the GST Penalty and Late Fees for GSTR-1 & GSTR-3B ensures that all tax obligations are met promptly.
Businesses need to take the GST Penalty and Late Fees for GSTR-1 & GSTR-3B seriously to maintain their compliance record.
Understanding the implications of the GST Penalty and Late Fees for GSTR-1 & GSTR-3B is vital for every taxpayer.
Taxpayers should always consider GST Penalty and Late Fees for GSTR-1 & GSTR-3B when strategizing their financial operations.
Late fee for non Nil returns of GSTR-1 and GSTR-3B has been capped at maximum of ₹2,000 for taxpayers with turnover below ₹ 1 crores, ₹5,000 for those with turnover between ₹ 1 crores to ₹ 5 crores and ₹10,000 for others. For Nil returns, the late fee has been capped at maximum of ₹500.
Being informed about the GST Penalty and Late Fees for GSTR-1 & GSTR-3B can lead to better decision-making and tax planning.
Taxpayers should keep abreast of the latest updates regarding GST Penalty and Late Fees for GSTR-1 & GSTR-3B for effective compliance.
Maintaining a focus on GST Penalty and Late Fees for GSTR-1 & GSTR-3B can enhance overall business compliance.
To summarize, understanding the GST Penalty and Late Fees for GSTR-1 & GSTR-3B is essential for every taxpayer.
A tax professional will suggest that a compliance calendar be maintained. GST returns should be filed on time, to avoid incurring late fees and other problems that could land up and start affecting a business.
It is must for all businesses to comply on time to avoid incurring of penalties & interest and to avoid a break in filing returns. It is must for taxpayers to monitor and comply their GST obligations on time.
Taxpayer Due Dates Under GST
Understanding GST Penalty and Late Fees for GSTR-1 & GSTR-3B
The due dates for GST returns depends on the type of taxpayer and return forms.
| Return Form under GST | Due Date |
| GSTR-1 (Monthly) | 11th of the next month |
| GSTR-1 (Quarterly) | 13th of the month succeeding the quarter |
| GSTR-3B (Monthly) | 20th of the next month |
| GSTR-3B (Quarterly) | 22nd or 24th of the month succeeding the quarter** |
| CMP-08 (Quarterly) | 18th of the month succeeding the quarter |
| GSTR-4 (Annual) | 30th of June succeeding the financial year for FY 2024-25(Previously 30th of April succeeding the financial year) |
| GSTR-5 (Monthly) | 13th of the next month |
| GSTR-5A (Monthly) | 20th of the next month |
| GSTR-6 (Monthly) | 13th of the next month |
| GSTR-7 (Monthly) | 10th of the next month |
| GSTR-8 (Monthly) | 10th of the next month |
| GSTR-9 (Annual) | 31st December of the next financial year |
| GSTR-9B (Annual) | 31st December of the next financial year |
| GSTR-9C (Annual) | 31st December of the next financial year |
| GSTR-10 (One time) | Within three months of the date of cancellation of the GST registration / date of cancellation order, whichever is later. |
| ITC-04 (Annual/Half-yearly) | 25th April of the next FY, where AATO is up to Rs.5 crore, and 25th October of the same FY for Apr-Sep and 25th April of the next FY for Oct-Mar, where AATO exceeds Rs.5 crore |
**For the taxpayers with aggregate turnover equal to or below Rs 5 crore, eligible and remain opted into the QRMP scheme, 22nd of month next to the quarter for taxpayers in category X states/UTs and 24th of month next to the quarter for taxpayers in category Y states/UTs
Category X: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.
Category Y: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and New Delhi.
Please note: GST filings as per the CGST Act are subject to changes by CBIC notifications/orders.
Interest on Late Payment of GST
| Particulars | Interest |
| Tax paid after due date* | 18% per annum |
| Excess ITC Claimed or excess reduction in Output Tax | 24% per annum |
For example, a taxpayer fails to make a tax payment of Rs.10,000 for the month of January 2026, where the due date was 20th February 2026.
If they make the payment on 22nd March 2026, the interest for the delay period (30 days: from 21st February till 22nd March), with minimum cash ledger balance being Rs.4000, will be calculated as follows:
Interest = ((Outstanding Tax- Minimum cash ledger balance) x Interest Rate x Number of Days) / 365
Interest = (6,000 x 18% x 30) / 365 = ₹88.77
Late Fee Computation for GSTR-3B and GSTR-1
- As per the GST Acts, for intrastate supplies, the late fee should be paid under both the CGST and SGST Act as follows:
| Name of the Act | Late fees for every day of delay |
| Central Goods and Services Act, 2017 | Rs 25* |
| Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 | Rs 25* |
| Total late fees to be paid per day | Rs 50* |
| The law has fixed a maximum late fees of Rs 10,000 up to May 2021. This means that in any case, the maximum late fees that can be charged by the Government is Rs 5,000 each return being filed under each Act. However, the maximum late fee has been rationalised from the June 2021 return period onwards, as given in the section below. | |
- The Nil return filers must pay the below mentioned late fee:
| Name of the Act | Late fees for every day of delay |
| CGST Act | Rs 10* |
| SGST Act | Rs 10* |
| Total late fees to be paid per day | Rs 20* |
| The maximum late fee has been rationalised for GSTR-1 and GSTR-3B from the June 2021 return period onwards, given in the section below. | |
For example, a taxpayer has filed GSTR-3B for February 2026 on 23rd March 2026, where the actual due date was 20th March 2026.
Amount of late fees to be paid would be Rs.150 (Rs. 50 per day for 3 days). The late fee would be Rs.75 under CGST and Rs.75 under SGST.
If the above return was a return with ‘Nil’ tax liability then late fees would be Rs. 60 (20 per day 3 days). The late fee would be Rs.30 under CGST and Rs.30 under SGST.
You can use the calculator here to find out the applicable late fees and interest: Clear GSTR-3B Interest and Late Fee Calculator
Late Fees for GST annual return (GSTR-9)
| Name of the Act | For taxpayers whose turnover is up to Rs 5 crore (Late fees for every day of delay) | For taxpayers whose turnover is more than Rs 5 crores & up to Rs 20 crore (Late fees for every day of delay) | For taxpayers whose turnover is more than Rs 20 crore (Late fees for every day of delay) |
| Central Goods and Services Act, 2017 | Rs 25* | Rs 50* | Rs 100 |
| Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 | Rs 25* | Rs 50* | Rs 100 |
| Total Late fees to be paid | Rs 50* | Rs 100* | Rs 200 |
| Maximum late fees that can be charged | 0.04% of turnover in state or union territory | 0.04% of turnover in state or union territory | 0.25% of the turnover for the financial year |
*CBIC issued notification no: 07/2023–Central Tax to reduce late fee for delayed GSTR-9 filing from FY 2022-23 onwards:
- Reduced the late fee for GSTR-9 from FY 2022-23:
- Taxpayers whose Annual Aggregate Turnover (AATO) is up to Rs.5 cr shall pay Rs. 50 per day subject to a maximum of 0.04% of turnover in state or union territory.
- Taxpayers whose AATO is more than Rs.5 cr to 20 cr shall pay Rs 100 per day subject to a maximum of 0.04% of turnover in state or union territory.
- Also, taxpayers who file pending GSTR-9 for FYs 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22 shall pay a maximum late fee of Rs 20,000. This reduced late fee applies only when you file pending GSTR-9 between 01st April 2023 to 30th June 2023.
Maximum Amount of Late Fees Under GST
Note that the maximum late fees have been rationalised from the month of June 2021 and quarter ending June 2021.
As per the 43rd GST Council meeting’s outcome, maximum late fee is reduced to the following amounts based on type of return and turnover slab, notified via the CGST notifications 19/2021, 20/2021,21/2021 dated 1st June 2021 for GSTR-3B and GSTR-1.
| Name of the return | Type of return | Annual turnover in previous year | Maximum late fee under CGST | Maximum late fee under SGST | Maximum late fee |
| GSTR-1 and GSTR-3B | Nil return | NA | Rs 250 | Rs 250 | Rs 500 |
| Other than Nil return | Up to Rs.1.5 crore | Rs.1,000 | Rs.1,000 | Rs.2,000 | |
| Between Rs.1.5 crore and Rs.5 crore | Rs. 2,500 | Rs. 2,500 | Rs. 5,000 | ||
| More than Rs.5 crore | Rs. 5,000 | Rs. 5,000 | Rs. 10,000 | ||
| GSTR-4 (FY 21-22 onwards) | Nil return | NA | Rs 250 | Rs 250 | Rs 500 |
| Other than Nil return | NA | Rs.1,000 | Rs.1,000 | Rs.2,000 | |
| GSTR-7 (TDS filing under GST) | NA | NA | Rs.1,000 | Rs.1,000 | Rs.2,000 |
Further, according to CGST notification 22/2021 dated 1st June 2021, the late fee chargeable for GSTR-7 is reduced from Rs.200 to Rs.50 per day of delay, per act, per return.