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Late fees and interest is applicable when a taxpayer doesn’t file the GST return or pay the tax liability on time. However, the late fees and penalty varies for different types of GST returns. It is important for businesses to understand the aspects of this. In this guide, we will understand the late fees and interest on late filing of GST returns.
Under GST laws, a late fee applies if there’s a delay in filing GST returns. This fee is charged for each day of delay past the prescribed due date. The late fee also applies to nil returns, meaning a late fee must be paid even if there are no sales, purchases, or GST liability in GSTR-3B.
For example, if you file GSTR-3B on January 23, 2024, three days after the due date of January 20, 2024, the late fee will apply to those three days and must be paid in cash, even if there is no sales or purchase data to show in the GSTR.
Currently, the GST portal applies late fees only to the following returns:
Note: Late fees must be paid in cash. Taxpayers cannot use the Input Tax Credit (ITC) in the electronic credit ledger to cover this payment.
Given below are the due dates for different types of GST 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 the 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 |
Not filing the GST return within the time period given by the department (including the extension), is considered as non-compliance with the law and attracts strict penalty amount. The amount of late fees differs according to the type of return filing.
Here’s a summary of late fee charges under GST, based on return type and turnover:
| 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 | Upto 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 |
Additionally, the daily late fee for GSTR-7 has been reduced to Rs. 50 per day per act, per return, down from the previous Rs. 200.
As per the GST Act, the late fees under GSTR-3B and GSTR-1 are as follows -
| Name of the Act | Late fees for every day of delay |
|---|---|
| Central Goods and Services Act, 2017 | Rs 25 |
| 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 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 fee for delayed filing or non-filing of the annual GST return GSTR-9 is given in the table below -
| 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 |
If the taxpayer fails to pay the tax liability by the due date, after reducing the input tax credit claims, then interest is applicable on the late payment of GST liability. The interest has to be paid by every taxpayer who -
If GST is not paid within the due dates of filing the return, interest at the following rates has to be paid -
| Particulars | Interest |
|---|---|
| Tax paid after due date* | 18% per annum |
| Excess ITC Claimed or Excess Reduction in Output Tax | 24% per annum |
For instance, if a taxpayer fails to pay Rs.10,000 for the month of january 2025, for which the due date was 20th February 2025.
If the payment is made on 22nd March 2025, the interest for the delay period (i.e., 30 days) will be calculated as follows -
Interest = (Outstanding tax x Interest x Number of days) / 365
= (10,000 x 18% x 30) / 365 = Rs.147.95
GST payment rules depend on the taxpayer category. Here are the rules applicable for GST payment for taxpayers -
The GST portal automatically calculates any applicable late fees when you submit your returns. The late fee for the current month or quarter must be paid when filing the following month or quarter’s returns.
Step 1. Log in to the GST portal and go to the Electronic Cash Ledger.
Step 2. Pay the late fee separately for CGST and SGST, as each requires a separate payment in their respective electronic cash ledgers.
Step 3. Note that you cannot file the GST return until the late fee is paid.
The late fee for each month includes any unpaid late fees from previous months if there was a delay in filing. Additionally, if GST payments are delayed, interest charges will also apply.
For businesses that need to charge GST, it is necessary to file the GST returns on time as specified by the tax department. Missing the deadline can result in heavy penalties and interest. There are various types of GST returns that can be beneficial to the public. However, understanding the various aspects and provisions of the GST law can be complex, especially for non-experts. Therefore, it is advisable to hire a tax expert to answer all your GST-related queries and help you with GST return filing. Book a tax expert now!
As a GST-registered taxpayer, you must file the relevant GST returns, regardless of whether you have any tax liability. Even if there are no transactions for the month, you are required to submit a Nil return. If you only have purchases and no sales, you still need to file GSTR-3B.
GST late fees are automatically added to the next period’s GST return, and payment is mandatory. The system will prevent you from filing your GST return until the late fees are paid.
If you haven't filed your GST returns:
As a registered taxpayer, if you have no outward supply (sales) and no inward supply (purchases) of goods or services in a given tax period, you must file a NIL GST return on the GST portal.
A late fee of Rs. 100 under CGST and Rs. 100 under SGST apply for each day of delay, totaling Rs. 200 per day. However, the total late fee is capped at 0.25% of the taxpayer's turnover in the relevant state or union territory, per the Act.
If a refund is not provided within 60 days of the application, the refund will be paid along with interest at 6% per annum, calculated for the period of delay.
