Section 47 of CGST explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 47 of the CGST Act, 2017 levies a late fee of ₹100 per day for failure to furnish returns under Sections 37, 39, 44 or 45, subject to a maximum. For most returns the cap is ₹5,000; for the annual return (GSTR-9) the late fee is capped at 0.25% of the taxpayer's turnover in the State/UT. An equal amount is levied under the SGST Act, so effective late fee is ₹200 per day.
What Section 47 Says — In Plain English
Section 47 is the "you filed late" charge of GST. In plain English, if you miss the due date for a specified return, the law charges you a fixed rupee amount for every single day of delay until you finally file — regardless of whether you owe tax or not. The statutory rate is ₹100 per day under the CGST Act, and because an identical fee applies under the SGST/UTGST Act, the combined statutory figure is ₹200 per day.
The section has two limbs. Sub-section (1) covers the details of outward supplies (Section 37), returns (Section 39) and the final return (Section 45), charging ₹100 per day subject to a maximum of ₹5,000. Sub-section (2) deals with the annual return (Section 44) and caps the late fee at 0.25% of turnover in the State or Union Territory. Because these amounts are seen as steep for small and nil filers, the Government has repeatedly used its Section 128 power to reduce and rationalise them by notification.
Clause / Sub-section Breakdown
| Sub-section | Returns covered | Rate / Cap (per Act) |
|---|---|---|
| 47(1) | GSTR-1 (S.37), GSTR-3B (S.39), GSTR-10 final return (S.45) | ₹100/day, capped at ₹5,000 |
| 47(2) | Annual return GSTR-9 (S.44) | ₹100/day, capped at 0.25% of State/UT turnover |
Applicability & Scope
- Applies to delayed GSTR-1 (Section 37), GSTR-3B (Section 39), GSTR-9 annual return (Section 44) and GSTR-10 final return (Section 45).
- The late fee runs for each day of delay from the due date until the return is actually filed.
- Reduced late-fee slabs apply via notification for nil returns and for taxpayers below specified turnover thresholds.
Worked Examples
Example 1 — Commonly notified slabs. Illustrative late-fee amounts as commonly notified (combined CGST + SGST):
| Return type | Per-day late fee | Maximum cap |
|---|---|---|
| GSTR-3B / GSTR-1 (with tax liability) | ₹50/day (₹25+₹25) | Turnover-based slabs (up to ₹5,000) |
| Nil GSTR-3B / GSTR-1 | ₹20/day (₹10+₹10) | ₹500 |
| Annual return GSTR-9 | Slab-based per day | 0.25% of State turnover |
| Final return GSTR-10 | Capped at ₹500 (₹250+₹250) | As notified |
A taxpayer files a GSTR-3B with tax liability 10 days late. At the commonly notified reduced rate of ₹50 per day (combined), the late fee is ₹50 × 10 = ₹500. Note the statutory base rate is ₹100/day per Act; the reduced rates come from Section 128 notifications.
Example 2 — Nil return, long delay. Suppose a small trader files a nil GSTR-3B 40 days late. At the notified rate of ₹20 per day combined, the raw computation is ₹20 × 40 = ₹800, but the nil-return cap of ₹500 applies, so the payable late fee is limited to ₹500. This shows how the cap protects nil and dormant filers from runaway late fees on long delays.
Step-by-Step in Practice
- Identify the return type and its due date to measure the exact number of days of delay.
- Apply the correct notified per-day rate (with-tax, nil, or annual-return slab).
- Let the portal auto-compute the late fee — it is calculated automatically and added to the return.
- Check whether the applicable cap (₹5,000, ₹500 for nil, or 0.25% turnover for GSTR-9) limits the amount.
- Pay the late fee before submission, since the return cannot be filed until it is cleared.
Common Mistakes & Practical Notes
- The statutory base is ₹100/day per Act; effective rates are usually lower due to Section 128 rationalisation notifications.
- Assuming a nil return has no late fee — nil filers still pay a reduced fee, capped at ₹500 combined.
- Treating the annual return cap as a flat figure; it is turnover-linked at 0.25% per Act.
- Confusing late fee with interest — late fee (S.47) is for delayed filing, interest (S.50) is for delayed tax payment; both can apply together.
- Expecting to negotiate the fee — it is auto-computed on the portal and must be paid to file.
Penalties, Timelines & Related Sections
Late fee under Section 47 is itself the charge for delay; separately, delayed tax attracts interest under Section 50, and continued non-filing invites a Section 46 notice and Section 62 assessment. Section 47 works alongside Sections 37, 39, 44 and 45 (the returns it penalises for delay), Section 46 (defaulter notice), Section 50 (interest on late tax) and Section 128 (power to waive or reduce late fee).
Recent Amendments & Context
The GST Council has repeatedly rationalised late fees under Section 128. Key measures include the nil-return late fee reduced to ₹20/day combined (₹500 cap), turnover-slabbed caps for GSTR-9 (lower for taxpayers up to ₹5 crore and ₹20 crore turnover), and a ₹500 cap on GSTR-10. Periodic amnesty schemes have also waived or reduced late fees for pending returns. Because these figures move with notifications, always verify the current rate on the portal before filing a delayed return.