GST Late Fee: GSTR-3B and GSTR-1 Penalty and Interest
GST late fee rules for GSTR-3B and GSTR-1: Rs 50 and Rs 20 per day, turnover-based caps, 18% interest, GSTR-9 fees, worked examples and how to pay.
Quick answer: The GST late fee for filing GSTR-3B or GSTR-1 after the due date is Rs 50 per day (Rs 25 CGST plus Rs 25 SGST), or Rs 20 per day for nil returns. It is capped at Rs 500 for nil returns and Rs 2,000, Rs 5,000 or Rs 10,000 for others depending on turnover. Late tax payment also attracts 18% annual interest.
Missing a GST return deadline in India costs money in two ways: a fixed GST late fee for every day the return is late, and interest on any tax paid late. The amounts look small per day, but they add up across months and returns, and they must be paid in cash. This guide explains the late fee for GSTR-3B, GSTR-1 and GSTR-9, how the turnover-based caps work, how interest is calculated, and how to avoid both, with worked examples.
This is general information, not legal or tax advice. Fee notifications change; confirm current amounts on the GST portal or CBIC website, or with a chartered accountant.
What is the GST late fee?
The late fee is a charge under Section 47 of the Central Goods and Services Tax (CGST) Act, 2017, levied when a registered person files a return after its due date. The Act sets a higher statutory fee, but the government has reduced it by notification. For GSTR-3B, Notification No. 19/2021-Central Tax (and for GSTR-1, Notification No. 20/2021-Central Tax), both dated 1 June 2021, set the current per-day rates and caps from the June 2021 tax period onward.
The fee is charged equally under CGST and SGST (or UTGST), so every amount in this guide is the combined total, half under each head. The GST portal calculates it automatically when you file late; you cannot file the return until it is paid.
Late fee vs interest vs penalty
| Charge | Legal basis | When it applies | How it is calculated |
|---|---|---|---|
| Late fee | Section 47, CGST Act | Return filed after due date | Fixed amount per day of delay, with caps |
| Interest | Section 50, CGST Act | Tax paid after due date | 18% per annum on net tax paid in cash, for days of delay |
| Penalty | Section 122 and others | Specific offences, such as issuing invoices without supply or evading tax | Set by the section, through proceedings by an officer |
How much is the late fee for GSTR-3B?
GSTR-3B is the summary return through which you declare and pay tax. Its late fee depends on whether the return has any tax liability and on your aggregate turnover in the preceding financial year. The caps below come from Notification 19/2021-CT, as summarized by the GST portal.
| Category | Late fee per day (CGST + SGST) | Maximum per return |
|---|---|---|
| Nil return (no tax payable) | Rs 20 (Rs 10 + Rs 10) | Rs 500 |
| Aggregate turnover up to Rs 1.5 crore | Rs 50 (Rs 25 + Rs 25) | Rs 2,000 |
| Aggregate turnover above Rs 1.5 crore up to Rs 5 crore | Rs 50 (Rs 25 + Rs 25) | Rs 5,000 |
| Aggregate turnover above Rs 5 crore | Rs 50 (Rs 25 + Rs 25) | Rs 10,000 |
The fee runs from the day after the due date up to the date you actually file. A GSTR-3B due on the 20th and filed on the 30th of the same month is 10 days late.
How much is the late fee for GSTR-1?
GSTR-1 reports your outward supplies invoice by invoice. Its late fee follows the same pattern: Rs 20 per day for nil returns, with a Rs 500 cap, and Rs 50 per day for others, with caps of Rs 2,000, Rs 5,000 and Rs 10,000 based on the same turnover slabs. Since no tax is paid in GSTR-1, a late GSTR-1 does not attract interest. It does, however, delay your buyers' input tax credit because your invoices will not appear in their GSTR-2B on time, and the portal may block a later GSTR-1 until the earlier one is filed. Our GSTR-1 vs GSTR-3B comparison explains how the two returns fit together.
What is the late fee for GSTR-9 annual return?
For annual returns from FY 2022-23 onward, the late fee for GSTR-9 depends on turnover. Under Notification No. 07/2023-Central Tax, the combined CGST and SGST fee is generally Rs 50 per day (capped at 0.04% of turnover in the state) for turnover up to Rs 5 crore, Rs 100 per day (capped at 0.04%) for Rs 5 crore to Rs 20 crore, and Rs 200 per day (capped at 0.5%) above Rs 20 crore. GSTR-9 is optional for taxpayers with turnover up to Rs 2 crore for the years the government has exempted. Check the portal for the year you are filing.
How is interest on late GST payment calculated?
Interest under Section 50(1) is charged at 18% per year on tax paid after the due date. Since 1 July 2017 (by retrospective amendment), interest is charged only on the portion of tax paid in cash through the electronic cash ledger, not on tax discharged using input tax credit, except where a return is filed after a proceeding under Section 73 or 74. The formula is:
Interest = Net cash tax liability x 18% x days of delay / 365
Interest is calculated from the day after the due date to the day the tax is paid. The portal pre-fills a computed interest amount in GSTR-3B for some periods, but the responsibility to pay the correct amount stays with you. Separately, wrongly availed input tax credit that is used to pay tax also attracts interest under Section 50(3).
Worked example: GSTR-3B late fee and interest
Priya runs a design studio with aggregate turnover of Rs 85 lakh in the previous financial year. She files monthly. Her GSTR-3B for July is due on 20 August, but she files and pays on 4 September, 15 days late. Her total output tax is Rs 64,000, of which Rs 24,000 is set off with ITC and Rs 40,000 is paid in cash.
| Item | Calculation | Amount |
|---|---|---|
| Days late | 21 August to 4 September | 15 days |
| Late fee | 15 x Rs 50 (cap Rs 2,000 not reached) | Rs 750 (Rs 375 CGST + Rs 375 SGST) |
| Interest | Rs 40,000 x 18% x 15 / 365 | Rs 296 (rounded) |
| Total extra cost | Rs 750 + Rs 296 | Rs 1,046 |
If Priya had also filed her GSTR-1 for July (due 11 August) on 4 September, that is 24 days late, adding Rs 1,200 (24 x Rs 50) in GSTR-1 late fees. Had the delay run to 40 days or more, each return's fee would have hit the Rs 2,000 cap for her turnover slab, but interest would have kept running until the tax was paid.
How to pay GST late fee on the portal
- Log in to the GST portal and open the return for the period.
- Check the computed late fee in the payment section of GSTR-3B (or the late fee tile in GSTR-1). The system calculates it from the filing date.
- Check your electronic cash ledger. If the balance is not enough for the late fee, interest and cash tax, create a challan in Form PMT-06.
- Deposit the cash under the correct heads: Fee under CGST and SGST, Interest under the relevant tax heads, and Tax. Pay by net banking, UPI, card, NEFT/RTGS or over the counter.
- Offset liabilities in GSTR-3B. Late fee and interest can only be paid from the cash ledger.
- File the return with DSC or EVC, and download the acknowledgement.
How late GST filing affects your customers
Late returns hurt more than your own cash. Your business customers can generally claim input tax credit only for invoices that appear in their GSTR-2B, which is generated from the GSTR-1 data suppliers file. If your GSTR-1 is late, their credit for those invoices moves to a later period, and if you never file it, they may be unable to claim it at all. Many larger buyers track supplier filing status and hold payments for suppliers who file late.
The Invoice Management System on the GST portal also lets recipients accept, reject or keep pending the invoices you report, so accurate and timely GSTR-1 data reduces disputes. Our guide to the GST Invoice Management System explains how buyers act on your invoices. If your turnover crosses the e-invoicing limit, invoices reported through the Invoice Registration Portal flow into GSTR-1 automatically; see the e-invoice limit in GST for who must comply.
Some sellers issue the wrong document type and then struggle to report it correctly. Composition dealers and suppliers of exempt goods issue a bill of supply instead of a tax invoice, and those supplies are still reported, just without tax. Getting the document right at the start saves correction work at return time.
The three-year time limit for filing GST returns
Under amendments made by the Finance Act, 2023, a registered person cannot furnish GSTR-1, GSTR-3B, GSTR-9 and certain other returns after three years from the due date. The GST Network has enforced this on the portal, so very old pending returns can become impossible to file, which can create problems for cancellation of registration and for your buyers' credit. If you have pending returns, file the oldest ones first, because returns must be filed in sequence.
Common mistakes that lead to GST late fees
- Skipping nil returns. Nil GSTR-1 and GSTR-3B must still be filed every period.
- Assuming the cap covers several months. The cap applies per return, so six late returns can mean six capped fees.
- Waiting for buyer payments. GST is due on supply, usually at invoice time, not when the customer pays.
- Trying to pay with ITC. Late fees and interest must be paid in cash.
- Wrong turnover slab. The cap depends on the previous financial year's aggregate turnover across all GSTINs on the same PAN.
- Not reconciling invoices. Missing or mismatched invoice data delays filing. Number invoices sequentially and keep a clean sales register.
Checklist to avoid GST late fees
- Set reminders for the 11th (GSTR-1) and 20th (GSTR-3B), or the QRMP dates if applicable.
- Issue GST invoices promptly and record them daily. Our GST invoice guide lists the mandatory fields.
- Reconcile purchases with GSTR-2B before filing GSTR-3B. See input tax credit under GST for the conditions.
- Keep enough cash in the electronic cash ledger a few days before the due date.
- File nil returns on time.
- If you are small, consider whether the GST composition scheme or QRMP would reduce your filing load.
For full due dates and the filing process, read our guide to GST return filing in India. If you are not yet registered, start with GST registration in India. Exporters should also read about the LUT under GST, because a missed LUT can mean paying IGST on exports. Once your invoices are ready, the invoice generator lets you produce each one in a minute.
The easiest way to avoid a GST late fee is to have accurate invoices ready long before the due date. Our free invoice generator needs no sign-up, lets you add your GSTIN, HSN or SAC codes and GST rates, and downloads a PDF built in your browser. You can also browse invoice templates for a GST-ready layout.
Frequently asked questions
Can the GST late fee be waived?
Late fees are waived or capped only when the government issues a notification, usually as part of an amnesty scheme or relief measure, as happened with the 2021 amnesty for older GSTR-3B returns. There is no general application to waive a late fee for an individual taxpayer. The portal calculates the fee automatically from the due date and filing date, so the practical way to avoid it is to file on time.
Why does the GST late fee show under CGST and SGST?
The late fee is levied under Section 47 of the CGST Act and the matching provision of each State or Union Territory GST Act, so the portal splits it into two equal heads, CGST and SGST (or UTGST). The per-day rates and caps quoted in most guides, including this one, are the combined totals. Deposit the cash under both fee heads when you create your PMT-06 challan, as the portal shows.
Can I pay GST late fee using input tax credit?
No. Late fees, like interest and penalties, must be paid in cash from the electronic cash ledger. Input tax credit in the electronic credit ledger can be used only for output tax liability. Make sure enough cash is deposited through a PMT-06 challan, under the CGST and SGST late fee heads, before you try to file the return, or the filing will not go through.
Is the GST late fee an allowable business expense for income tax?
This is a debated area. Explanation 1 to Section 37(1) of the Income-tax Act, 1961 disallows expenses incurred for any purpose that is an offence or prohibited by law, and courts and tribunals have taken different views on whether GST late fees are compensatory or penal. Interest on delayed tax is more commonly allowed. Ask your chartered accountant how to treat it in your books.
What is the due date for GSTR-3B and GSTR-1?
For monthly filers, GSTR-1 is generally due on the 11th of the following month and GSTR-3B on the 20th. Taxpayers under the QRMP scheme file GSTR-1 quarterly by the 13th of the month after the quarter, and GSTR-3B by the 22nd or 24th depending on their state. The government sometimes extends due dates, so check the GST portal for the period you are filing.
What happens if I do not file GST returns for a long time?
Apart from accumulating late fees and interest, the proper officer can cancel your registration if you fail to furnish returns for a continuous period specified in the rules (six months for regular taxpayers). Your buyers may also lose input tax credit because your invoices will not reach their GSTR-2B. In addition, returns cannot be filed after three years from their due date.
Is there a late fee for not filing nil GSTR-3B?
Yes. Even if you had no sales and no purchases, you must file a nil GSTR-3B for every period while your registration is active. The late fee for a nil return is Rs 20 per day (Rs 10 CGST plus Rs 10 SGST), capped at Rs 500 per return. Nil returns can be filed easily through the portal or by SMS, so there is little reason to pay this fee.
Does interest apply if I only file GSTR-1 late?
No interest arises from a late GSTR-1 alone, because GSTR-1 is a statement of outward supplies and no tax is paid through it. Only the late fee applies. Interest arises when the tax itself is paid late, which happens through GSTR-3B. However, a late GSTR-1 can delay your customers' input tax credit, which can damage business relationships.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
Try the invoice generator