Key takeaways
- Late fee for GSTR-3B and GSTR-1 is ₹50 per day (₹20 for nil returns), capped based on turnover.
- Interest of 18% per year applies on tax paid late, calculated on the portion paid in cash.
- Late fees for the annual return GSTR-9 depend on turnover and are capped as a percentage of turnover in the state.
- Returns older than three years from their due date can no longer be filed, so pending returns should be cleared quickly.
Filing GST returns late costs money in two ways: a late fee for every day of delay, and interest on tax paid after the due date. Repeated delays can also lead to blocked e-way bills and cancellation of registration. This guide explains GST late fees and interest and how to work out what you owe.
Late fees for monthly and quarterly returns
| Return | Late fee per day (CGST + SGST) | Maximum per return |
|---|---|---|
| GSTR-3B or GSTR-1, nil return | ₹20 | ₹500 |
| GSTR-3B or GSTR-1, turnover up to ₹1.5 crore | ₹50 | ₹2,000 |
| GSTR-3B or GSTR-1, turnover ₹1.5 crore to ₹5 crore | ₹50 | ₹5,000 |
| GSTR-3B or GSTR-1, turnover above ₹5 crore | ₹50 | ₹10,000 |
The turnover band is based on your aggregate turnover in the previous financial year. For inter-state supplies, the fee is charged as IGST at the same total amount.
Late fee for the annual return (GSTR-9)
For annual returns from 2022-23 onwards, the late fee depends on turnover:
- Turnover up to ₹5 crore: ₹50 per day, capped at 0.04% of turnover in the state
- Turnover above ₹5 crore and up to ₹20 crore: ₹100 per day, capped at 0.04% of turnover in the state
- Turnover above ₹20 crore: ₹200 per day, capped at 0.5% of turnover in the state
Taxpayers with turnover up to ₹2 crore are exempt from filing GSTR-9 for recent years.
Interest on late payment
If you pay tax after the due date, interest at 18% per year applies from the day after the due date until the day you pay. Interest is calculated on the tax paid in cash, not on the part set off using input tax credit.
Example: You owe ₹40,000 in GSTR-3B for a month, of which ₹25,000 is covered by input tax credit and ₹15,000 is paid in cash, 10 days late. Interest is ₹15,000 × 18% × 10 ÷ 365 = about ₹74. A late fee of ₹50 × 10 = ₹500 also applies.
Interest at 18% also applies where input tax credit is wrongly claimed and used, from the date of use until it is reversed.
The three-year bar
The law now prevents filing a GST return after three years from its due date. The GST portal began enforcing this from the November 2025 tax period. If a return is barred, you cannot file it, and the department can assess the tax and recover it with interest and penalties. If you have old pending returns, file them now.
How to check what your business owes
- Check filing status on the GST portal under Services, Returns, Track Return Status, for every month and quarter.
- Check your ledgers. The electronic liability ledger shows tax, interest and late fees payable.
- Calculate late fees by multiplying the days of delay by the daily rate, up to the cap for your turnover band.
- Calculate interest on the cash portion of tax paid late, at 18% per year.
- Pay in cash through PMT-06 and file the pending returns in order, oldest first.
How to avoid late fees
- Keep sales and purchase records up to date every month
- File nil returns even when there is no business
- Use the QRMP scheme if eligible, to file quarterly
- Track all due dates in our compliance calendar
- Cancel your registration properly if you close the business; see how to cancel GST registration
Behind on returns? Our GST return filing team calculates your exact dues and files pending returns in the right order. See also GSTR-1 vs GSTR-3B.
This article explains the general GST position as on the date shown. Late fee caps and waivers are set by notifications and can change; the amounts shown on the GST portal for your returns prevail.
Frequently asked questions
Is late fee charged if I have no sales?
Yes, if you do not file on time. For nil returns the late fee is lower, ₹20 per day, capped at ₹500 per return.
Can late fee be paid using input tax credit?
No. Late fees and interest must be paid in cash through the electronic cash ledger.
Is interest charged if I file late but had no tax to pay in cash?
Interest is calculated on the tax paid in cash after the due date. If your entire liability was covered by input tax credit, cash interest is generally not payable on that portion.
Does the portal calculate late fee automatically?
Yes. For GSTR-3B, the portal calculates the late fee for the current return and adds it to the next return's liability where applicable. Interest is also computed by the system for GSTR-3B, but you should verify it.