GST Late Fees, Interest & Penalties: Full Reference

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Last updated: 27 June 2026 · Covers late fees, interest and key penalties under the CGST Act. Verify caps and amounts on gst.gov.in.

A late GST return (GSTR-1 or GSTR-3B) costs ₹50 per day — ₹20 per day for a nil return — capped by turnover, plus 18% annual interest on any tax paid late. Wrongly-availed input tax credit carries 24% interest, and serious offences attract a penalty of 10% of the tax (minimum ₹10,000) or up to 100% in fraud cases. Late fees must be paid in cash; they cannot be set off against ITC.

Key takeaways

GSTR-1 / GSTR-3B late fee: ₹50/day (₹25 CGST + ₹25 SGST); ₹20/day for nil returns.
Late-fee caps scale with turnover: ₹500 (nil) up to ₹10,000 (turnover above ₹5 crore).
Interest: 18% p.a. on net tax paid late; 24% p.a. on wrongly-availed ITC reversed.
GSTR-9 (annual return) late fee is tiered: ₹50–₹200/day, capped by turnover.
GSTR-7 / GSTR-8 (TDS/TCS): ₹200/day, capped at ₹5,000.
Penalty for short/non-payment: 10% of tax (min ₹10,000), rising to 100% in fraud cases.
Late fees are paid in cash — you cannot use the ITC ledger.

Fact box. Late filing of GSTR-1 or GSTR-3B costs ₹50 per day (₹20/day for a nil return) plus 18% annual interest on unpaid tax — and the late fee is capped by turnover, from ₹500 up to ₹10,000.

What is the late fee for GSTR-1 and GSTR-3B?

The daily late fee is the same for both returns, but the maximum is capped according to your annual aggregate turnover (AATO).

Annual turnover (AATO)	Maximum late fee (non-nil)
Nil liability	₹500 (₹250 + ₹250)
Up to ₹1.5 crore	₹2,000 (₹1,000 + ₹1,000)
₹1.5 cr – ₹5 cr	₹5,000 (₹2,500 + ₹2,500)
Above ₹5 cr	₹10,000 (₹5,000 + ₹5,000)

Non-nil return: ₹50/day (₹25 CGST + ₹25 SGST).
Nil return: ₹20/day (₹10 + ₹10), capped at ₹500.

The late fee accrues from the day after the due date until you file. It must be paid in cash — it cannot be discharged from the input tax credit ledger.

How much interest does GST charge on late payment?

Interest applies to the tax itself, separately from the late fee, and runs until you pay.

Situation	Interest rate
Net tax paid late (Section 50)	18% p.a.
Wrongly-availed / excess ITC reversed	24% p.a.

Fact box. Interest under Section 50 is 18% per annum on net tax paid late, but rises to 24% per annum on input tax credit that was wrongly availed and has to be reversed.

What are the late fees for GSTR-9 and GSTR-7/8?

Annual returns and TDS/TCS returns have their own late-fee schedules.

GSTR-9 (annual return) — tiered by turnover:

Annual turnover	Late fee	Cap
Up to ₹5 cr	₹50/day (₹25 + ₹25)	0.04% of state turnover
₹5 cr – ₹20 cr	₹100/day (₹50 + ₹50)	—
Above ₹20 cr	₹200/day (₹100 + ₹100)	0.5% of state turnover

GSTR-7 / GSTR-8 (TDS/TCS under GST): ₹200/day (₹100 + ₹100), capped at ₹5,000, plus 18% interest on unpaid TDS/TCS.

What penalties apply beyond late fees?

Beyond daily late fees, the CGST Act imposes penalties for short payment, non-payment and fraud.

Offence	Penalty
Short or non-payment of tax (no fraud)	10% of tax due, minimum ₹10,000
Fraud / wilful misstatement	100% of tax due, minimum ₹10,000
Failure to register when liable	Penalty plus recovery of tax with interest
General contravention (no separate penalty specified)	Up to ₹25,000

Returns older than 3 years (GSTR-1, 3B, 9, etc.) can no longer be filed at all — the portal permanently bars them under the Finance Act 2023 amendment, so a long-overdue return is not just expensive, it can become impossible to file.

How Ankeshan helps: Ankeshan estimates the running late fee and interest the moment a GST return slips, and reminds you before the due date so it rarely gets that far — inside Excel. (Launching soon — join the waitlist.)

Frequently asked questions

What is the GST late fee per day? ₹50 per day for a return with liability (₹25 CGST + ₹25 SGST) and ₹20 per day for a nil return, plus 18% annual interest on any unpaid tax.

What is the maximum GST late fee? It is capped by turnover: ₹500 for a nil return, ₹2,000 up to ₹1.5 crore turnover, ₹5,000 between ₹1.5 and ₹5 crore, and ₹10,000 above ₹5 crore.

Can I pay the GST late fee using input tax credit? No. Late fees must be paid in cash through the electronic cash ledger; they cannot be set off against the ITC ledger.

What interest does GST charge on late tax? 18% per annum on net tax paid late under Section 50, and 24% per annum on input tax credit that was wrongly availed and must be reversed.

Is there a penalty for not registering under GST? Yes. Failing to register when liable attracts a penalty along with recovery of the tax due plus interest.

Sources

CBIC / GSTN — late fees, interest (Sections 47, 50) and penalties (Sections 122–125) — cbic-gst.gov.in, gst.gov.in.
GST Council notifications on late-fee caps — Notifications 07/2023 and 19/2021.

General information, not professional advice. Verify each amount on the official portal for your specific case. Reviewed by a Chartered Accountant; last updated 27 June 2026.