GST Compliance Guide · FY 2025-26

GST Late Fee & Interest —
Rates, Caps & Calculation

The per-day late fee for every GST return under Section 47, the turnover-based caps, the 18% interest on late tax under Section 50, and a worked example so you can check your own dues.

Updated for FY 2025-26 GST Expert Reviewed Return-wise late-fee table

Talk to a GST Expert See late-fee table

Rs 50Per day (Rs 20 nil)

18%Interest p.a.

Rs 2k–10kTurnover-based cap

24%On wrong ITC

Quick Answer

Under Section 47 of the CGST Act, a GST late fee of Rs 50 per day (Rs 25 CGST + Rs 25 SGST) applies to a delayed return, or Rs 20 per day (Rs 10 + Rs 10) for a nil return. For GSTR-1/3B the fee is capped by turnover — Rs 2,000 up to Rs 1.5 crore, Rs 5,000 up to Rs 5 crore and Rs 10,000 above Rs 5 crore (nil-return cap Rs 500). Separately, Section 50 charges 18% p.a. interest on the net tax paid late (24% on wrongly claimed and utilised ITC). GST 2.0 changed rate slabs, not these late-fee rules.

Regular / day Rs 50

Nil / day Rs 20

Interest 18% p.a.

Wrong ITC 24% p.a.

Return by return

GST Late Fee by Return Type

Late fee is levied separately under CGST and SGST/UTGST, so the combined per-day figures below are double the per-Act amount. There is no late fee under IGST. Filing on time avoids all of it — start with our GST return filing service.

Return	Filed by	Late Fee / Day	Maximum Cap
GSTR-1	Regular taxpayers	Rs 50 (Rs 20 nil)	Turnover-based: Rs 2,000 / 5,000 / 10,000
GSTR-3B	Regular taxpayers	Rs 50 (Rs 20 nil)	Turnover-based: Rs 2,000 / 5,000 / 10,000
GSTR-4	Composition (annual)	Rs 50 (Rs 20 nil)	Rs 2,000 (nil Rs 500)
GSTR-5	Non-resident (monthly)	Rs 50 (Rs 20 nil)	Rs 10,000
GSTR-7	TDS (monthly)	Rs 50 (Rs 20 nil)	Rs 2,000
GSTR-8	TCS (monthly)	Rs 50	Rs 10,000
GSTR-9 / 9C	Annual return	Rs 50 (up to Rs 5 cr AATO)	0.04% of state turnover; Rs 200/day & 0.5% above Rs 5 cr

Regular-return caps are slabbed by aggregate turnover (AATO). GSTR-9 late fee was rationalised to Rs 50/day (cap 0.04%) for AATO up to Rs 5 crore; the older Rs 200/day (cap 0.5%) applies above that. Verify the cap for your slab on the portal.

Late fee must be paid in cash — you cannot skip it

The portal auto-computes the late fee and adds it to your next GSTR-3B; you cannot file the return without paying it. It must be paid in cash through the electronic cash ledger and cannot be set off against Input Tax Credit. Persistent non-filing can lead to registration cancellation.

Section 50

Interest on Late GST Payment

Late fee is for filing late; interest is for paying tax late — the two are separate and both can apply. Interest runs from the day after the due date until the tax is actually paid.

18% per annum — on tax paid after the due date.
24% per annum — on ITC that was wrongly claimed and utilised.

Interest is charged on the net cash tax liability — only the amount paid through the electronic cash ledger, not the part offset by eligible ITC (Section 50 as amended). Unlike the late fee, interest has no cap.

Got a delay or a notice on interest and late fee? Get your figures checked.

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Worked example

How to Calculate GST Late Fee & Interest

A taxpayer files GSTR-3B 21 days late with Rs 1,00,000 of net tax payable in cash. Late fee and interest are computed separately, then added.

Late fee — Section 47

Days late21

Per dayRs 50

21 x Rs 50Rs 1,050

Late feeRs 1,050

Interest — Section 50

Net taxRs 1,00,000

Rate18% p.a.

x 21/365Rs 1,036

InterestRs 1,036

Total payable on top of the tax is roughly Rs 2,086 (Rs 1,050 late fee + Rs 1,036 interest). Interest uses tax x 18% x days/365; a nil-tax return would carry only the Rs 20/day late fee. Try our GST calculator for the base tax.

Late fee is usually small if

The delay is only a few days
It is a nil return (Rs 20/day, cap Rs 500)
Turnover is under Rs 1.5 crore (Rs 2,000 cap)

Watch out when

Large tax is unpaid — 18% interest is uncapped
Several periods are pending together
ITC was wrongly used — interest jumps to 24%

Stay compliant

How to Reduce or Avoid GST Late Fees

File nil returns on time even with no activity
Set reminders for GSTR-1 & GSTR-3B due dates
Use the QRMP scheme if turnover is up to Rs 5 crore
Pay tax early to stop 18% interest accruing
Reconcile ITC so you never utilise wrong credit
Watch GST Council meetings for amnesty waivers
File pending old returns before penalties stack up
Automate returns with GST-compliant software

Amnesty schemes can waive past late fees

The GST Council has periodically announced amnesty schemes that reduce or waive late fees for specified past return periods. If you have old unfiled returns, check whether a current waiver applies before you file — it can cut the late fee sharply. Availability changes, so confirm on the portal.

Have pending returns or a mounting late fee? Let TaxClue clear the backlog.

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Government sourcesPortal & notifications: gst.gov.in · CBIC-GST: cbic-gst.gov.in · Late fee: Section 47, CGST Act 2017 (turnover-based caps by notification) · Interest: Section 50, CGST Act 2017 (18% / 24% on net cash liability)

GST Late Fee — Frequently Asked Questions

Rates & Caps

What is the GST late fee per day?

The GST late fee under Section 47 is Rs 50 per day for a return with tax liability (Rs 25 CGST + Rs 25 SGST) and Rs 20 per day for a nil return (Rs 10 + Rs 10). It accrues for every day of delay beyond the due date until the return is filed. There is no separate late fee under IGST.

What is the maximum GST late fee for GSTR-3B and GSTR-1?

For GSTR-1 and GSTR-3B the late fee is capped by aggregate turnover: Rs 2,000 for turnover up to Rs 1.5 crore, Rs 5,000 for Rs 1.5 crore to Rs 5 crore, and Rs 10,000 above Rs 5 crore. A nil return is capped at Rs 500. These caps are per return, per Act combined.

What is the late fee for filing GSTR-9 late?

For taxpayers with aggregate turnover up to Rs 5 crore, the GSTR-9 late fee has been rationalised to Rs 50 per day (Rs 25 CGST + Rs 25 SGST), capped at 0.04% of turnover in the state or union territory (0.02% under each Act). For turnover above Rs 5 crore the fee is Rs 200 per day, capped at 0.5% of state turnover. Confirm the slab on the portal.

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 combined figure is Rs 25 CGST + Rs 25 SGST = Rs 50 per day for a regular return.

Is there a late fee for a nil GST return?

Yes. Even a nil GSTR-1 or GSTR-3B attracts a late fee of Rs 20 per day (Rs 10 CGST + Rs 10 SGST) if filed after the due date, capped at Rs 500 per return. Filing nil returns on time is the simplest way to avoid it.

Interest

What is the interest rate on late GST payment?

Interest under Section 50 is 18% per annum on tax paid after the due date, and 24% per annum on Input Tax Credit that was wrongly claimed and utilised. It is calculated from the day after the due date to the date of actual payment as tax x rate x days / 365.

Is GST interest charged on gross or net tax liability?

On the net cash tax liability — that is, only on the tax actually paid through the electronic cash ledger after setting off eligible ITC, not on the portion covered by credit. This was clarified by the amendment to Section 50 (notified from 1 September 2020, applied from 1 July 2017). Unlike the late fee, interest has no cap.

Do late fee and interest both apply together?

Yes. They are separate charges. The late fee under Section 47 is for filing the return late, while interest under Section 50 is for paying the tax late. If you file late and also had tax to pay, both apply. A nil-tax return carries only the late fee.

Payment

Can I pay GST late fee using my ITC balance?

No. The late fee must be paid in cash through the electronic cash ledger and cannot be adjusted against Input Tax Credit. The portal auto-computes it and adds it to your next GSTR-3B, and you cannot file the return until it is paid.

How is the GST late fee collected?

It is auto-populated by the GST portal in the next return and must be discharged in cash before that return can be filed. You cannot manually reduce or waive it yourself; only a government notification or amnesty scheme can lower it.

Reduce & Avoid

How can I reduce or waive GST late fees?

File returns (including nil returns) on time, pay tax early to stop interest, and use the QRMP scheme if eligible to cut filing frequency. For past-period returns, watch for GST Council amnesty schemes that reduce or waive late fees for specified periods. Only a government notification can waive a late fee.

What happens if I do not pay the GST late fee?

You cannot file the subsequent return until the auto-computed late fee is paid, so filings stall. Persistent non-compliance can lead to suspension or cancellation of GST registration, and outstanding dues may be recovered under Section 79 of the CGST Act. Clearing the backlog promptly is the safest course.

Did GST 2.0 change the late fee or interest rules?

No. The GST 2.0 rationalisation effective 22 September 2025 restructured goods and services rate slabs; it did not change the Section 47 late fee or the Section 50 interest provisions. The per-day late fees, turnover-based caps and 18%/24% interest continue to apply as before.

Done-for-you

Related TaxClue Services

GST Return FilingOn-time GSTR-1 & 3B so late fee and interest never start.Explore →GST RegistrationGet your GSTIN online and set up compliant filing from day one.Explore →Composition SchemeSimpler quarterly compliance for small taxpayers up to the limit.Explore →ITC ReconciliationAvoid wrong-ITC use and the 24% interest that comes with it.Explore →

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