The late fee for GSTR-3B and GSTR-1 is ₹50 per day of delay (₹25 CGST plus ₹25 SGST), or ₹20 per day for a nil return. It is capped at ₹500 per return for nil returns, and at ₹2,000, ₹5,000 or ₹10,000 for other returns depending on turnover. Tax paid late also attracts interest at 18% a year under Section 50 of the CGST Act.
The fee and the interest are separate charges. The fee punishes the late return, the interest compensates for late tax, and a late GSTR-3B usually attracts both.
GST late fee and interest at a glance
Charge | Position |
|---|---|
Late fee, GSTR-1 and GSTR-3B | ₹50 per day; ₹20 per day for a nil return (Section 47) |
Maximum late fee | Nil return ₹500; other returns ₹2,000, ₹5,000 or ₹10,000 by turnover (Notifications 19/2021 and 20/2021-Central Tax) |
Interest on late tax | 18% a year on tax paid in cash after the due date (Section 50(1)) |
Interest on wrong ITC | 18% a year on credit wrongly availed and used (Section 50(3)) |
How they are paid | Late fee and interest only in cash, not from input tax credit |
Hard stop | Returns cannot be filed after three years from the due date (enforced on the portal from the July 2025 tax period) |
Late fee caps for GSTR-3B and GSTR-1
Since the June 2021 tax period, the maximum late fee per return depends on the previous year's aggregate turnover. The caps apply per return, so a business three months late on both GSTR-1 and GSTR-3B pays up to six capped fees.
Return type and turnover | CGST cap | SGST cap | Total cap |
|---|---|---|---|
Nil return, any turnover | ₹250 | ₹250 | ₹500 |
Turnover up to ₹1.5 crore | ₹1,000 | ₹1,000 | ₹2,000 |
Turnover above ₹1.5 crore up to ₹5 crore | ₹2,500 | ₹2,500 | ₹5,000 |
Turnover above ₹5 crore | ₹5,000 | ₹5,000 | ₹10,000 |
GSTR-9 annual return
The annual return has its own late fee under Notification No. 07/2023-Central Tax: ₹50 a day for turnover up to ₹5 crore and ₹100 a day for ₹5 crore to ₹20 crore, each capped at 0.04% of turnover in the state, and ₹200 a day above ₹20 crore, capped at 0.5%. Taxpayers with turnover up to ₹2 crore are exempt from filing GSTR-9 from FY 2024-25.
How interest on late GST is calculated
Interest under Section 50(1) runs at 18% a year from the day after the due date until the day the tax is paid, and is charged only on the portion of tax paid in cash. Tax set off from input tax credit carries no interest, because that credit was already with the government.
Example: a Rohtak trader with turnover under ₹1.5 crore files the October GSTR-3B on 19 December instead of 20 November, 29 days late. Output tax is ₹1,50,000, of which ₹1,00,000 is set off from credit and ₹50,000 is paid in cash.
Item | Amount |
|---|---|
Late fee: 29 days × ₹50 | ₹1,450 (below the ₹2,000 cap) |
Interest: ₹50,000 × 18% × 29 ÷ 365 | ₹715 |
Total cost of the delay | ₹2,165, all payable in cash |
The portal computes interest in GSTR-3B for the delay in filing, but you remain responsible for interest on any tax you under-declared in an earlier month and paid later.
Interest on input tax credit
If you claim credit you were not entitled to and use it to pay tax, Section 50(3) charges 18% interest on the credit used. Credit that was wrongly claimed but never used, because your credit ledger balance never fell below it, attracts no interest; you simply reverse it.
What happens if you keep delaying
The fee cap stops the fee from growing, but other consequences start once returns stay pending.
Delay | Consequence |
|---|---|
Previous month unfiled | The portal will not accept the next GSTR-3B; returns must be filed in sequence |
GSTR-1 unfiled | GSTR-3B for that period cannot be filed, and your buyers lose credit on your invoices |
Two consecutive periods unfiled | E-way bill generation is blocked under Rule 138E |
Notice ignored | The officer issues GSTR-3A, then can assess tax on best judgment under Section 62 |
Six months of non-filing | Registration can be cancelled by the officer |
Three years from the due date | The return can no longer be filed at all |
The three-year bar, introduced by the Finance Act, 2023 and applied through Notification No. 28/2023-Central Tax, covers GSTR-1, GSTR-3B, GSTR-4 and GSTR-9 among others. Once a return crosses three years, the only route left is through the officer, usually as an assessment.
Can the GST late fee be waived?
Only by a government notification. Waivers have been announced in the past through amnesty schemes that covered specific periods, but an individual officer has no power to waive a late fee under Section 47. If a portal outage caused the delay, keep screenshots and the GSTN's own advisory; extensions of due dates, when granted, are notified for everyone.
Our view: if tax money is short, file the return on time anyway and pay what you can. The late fee depends on the return being late, not on the tax being unpaid, so filing on time with a part payment avoids the fee entirely and limits interest to the unpaid balance.
How to keep late fees at zero
Calendar GSTR-1 for the 11th and GSTR-3B for the 20th, or the 22nd or 24th for quarterly filers by state.
File nil returns on time even in months with no sales; SMS filing is available for nil GSTR-3B.
Finish IMS actions and recompute GSTR-2B before starting GSTR-3B.
Pay the tax through PMT-06 a day or two before the due date to avoid bank delays.
Clear any backlog oldest first, since returns must be filed in sequence.
The full due-date list for every return is in types of GST returns, and the GSTR-3B process itself is covered in how to file GSTR-3B.
Behind on returns or worried about the three-year cut-off? Talk to Ankush's team about GST return filing at ComplyLocal →
