GST late fees and interest, explained
File late and two charges stack up: a per-day late fee and 18% annual interest on the tax. Here are the exact amounts, the caps that limit them, and a worked example.
Updated 2026-05-30 · A reference guide from Ledgester
Key facts
- Late fee for GSTR-1 and GSTR-3B is ₹50 per day (₹25 CGST + ₹25 SGST); for nil returns it is ₹20 per day (₹10 + ₹10).
- Maximum late fee is turnover-based: ₹2,000 (up to ₹1.5 cr), ₹5,000 (₹1.5–5 cr), ₹10,000 (above ₹5 cr); nil returns are capped at ₹500.
- Interest is charged at 18% per annum on the net tax paid late, calculated day-wise.
- Interest on excess or wrongly availed input tax credit is charged at 24% per annum.
Two separate charges
When a GST return is filed after its due date, two distinct charges apply, and they are calculated independently:
- Late fee: a fixed amount per day of delay, under Section 47.
- Interest: a percentage of the tax that was paid late, under Section 50.
You can owe interest even when no late fee applies (for example, if you file on time but pay the tax late).
Late fee amounts
| Return type | Late fee per day |
|---|---|
| GSTR-1 / GSTR-3B (with tax liability) | ₹50 (₹25 CGST + ₹25 SGST) |
| GSTR-1 / GSTR-3B (nil return) | ₹20 (₹10 CGST + ₹10 SGST) |
The maximum caps
The late fee cannot exceed a turnover-based cap:
| Aggregate turnover | Maximum late fee |
|---|---|
| Nil return | ₹500 |
| Up to ₹1.5 crore | ₹2,000 |
| ₹1.5 crore to ₹5 crore | ₹5,000 |
| Above ₹5 crore | ₹10,000 |
Each cap is split equally between CGST and SGST.
How interest is calculated
Interest is charged at 18% per annum on the net tax liability discharged late, computed for the exact number of days from the day after the due date to the date of payment. The formula is:
Interest = Tax paid late × 18% × (days delayed ÷ 365)
Interest on excess or wrongly availed input tax credit is higher, at 24% per annum.
Worked example
Suppose a business with turnover of ₹3 crore files GSTR-3B 10 days late with a tax liability of ₹40,000.
- Late fee: 10 days × ₹50 = ₹500 (well under the ₹5,000 cap for its turnover band).
- Interest: ₹40,000 × 18% × (10 ÷ 365) ≈ ₹197.
- Total extra cost: about ₹697.
Frequently asked questions
- What is the late fee for filing GSTR-3B late?
- For a return with tax liability, the late fee is ₹50 per day (₹25 CGST + ₹25 SGST). For a nil return it is ₹20 per day (₹10 + ₹10), subject to the turnover-based maximum cap.
- Is there a maximum cap on GST late fees?
- Yes. The cap is ₹2,000 (turnover up to ₹1.5 cr), ₹5,000 (₹1.5–5 cr), and ₹10,000 (above ₹5 cr). Nil returns are capped at ₹500. Each cap is split equally between CGST and SGST.
- How is interest on late GST payment calculated?
- Interest is charged at 18% per annum on the net tax paid late, computed day-wise from the day after the due date to the date of payment.
- Is interest charged if I file on time but pay the tax late?
- Yes. Interest at 18% per annum applies to any tax paid after the due date, independent of the late-filing fee.
This guide is general information, not professional tax advice, and GST rules change through CBIC notifications. Verify the current position for your situation or consult a qualified professional before acting.