GST Late Fee and Interest: How Much You Pay for Delay
Publishing Date: 7 October, 2026
Missing a GST due date costs money in two ways: a late fee for filing the return late, and interest on tax paid late. Both are calculated automatically on the GST portal, and both must be paid in cash.
Late fee for GSTR-3B and GSTR-1
| Type of return | Late fee per day (CGST + SGST) |
|---|---|
| Nil return | Rs 20 (Rs 10 + Rs 10) |
| Return with tax liability | Rs 50 (Rs 25 + Rs 25) |
The total late fee per return is capped based on turnover:
| Category | Maximum late fee per return |
|---|---|
| Nil return | Rs 500 |
| Turnover up to Rs 1.5 crore | Rs 2,000 |
| Turnover above Rs 1.5 crore up to Rs 5 crore | Rs 5,000 |
| Turnover above Rs 5 crore | Rs 10,000 |
For IGST-only returns, the same totals apply under IGST.
Interest on late payment
- 18% per annum on tax paid after the due date, calculated from the day after the due date to the date of payment.
- 24% per annum on excess input tax credit claimed and used, or excess reduction of output tax.
Example: Rs 1,00,000 net tax paid 20 days late attracts interest of about Rs 986 (1,00,000 × 18% × 20 ÷ 365).
Three-year time limit
Returns such as GSTR-1 and GSTR-3B can no longer be filed after three years from their due date. If you have very old pending returns, act quickly; after the time limit, the return is barred on the portal.
Other consequences of not filing
- GSTR-1 blocked if GSTR-3B is pending
- E-way bill generation blocked after continuous non-filing
- Registration suspended or cancelled
- Customers lose input tax credit and may stop buying from you
How to avoid late fees
- Know your due dates — see our GST due date calendar.
- File a nil return even when there are no sales.
- Keep enough balance in the cash ledger before the due date.
- Consider the QRMP scheme if your turnover is up to Rs 5 crore.
Hand over your returns to our GST return filing team and stop worrying about due dates.
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Frequently Asked Questions
Q1. Is there a late fee for nil GST returns?
Yes, but it is lower: Rs 20 per day in total, capped at Rs 500 per return.
Q2. Can the GST late fee be paid using input tax credit?
No. Late fee and interest must be paid in cash through the electronic cash ledger.
Q3. Is interest charged on the full tax or net tax?
Interest on delayed payment is generally charged on the portion of tax paid in cash, that is the net cash liability.
Q4. What happens if I don't file returns for months?
Your GST registration can be suspended or cancelled, e-way bills may be blocked, and your buyers may not get input tax credit.
Related guides
Mukul Tomar writes Vaidam Consultancy’s guides on company registration, GST, income tax and ROC compliance. An experienced blog writer on Indian tax and business law, his articles have also been published on TaxGuru. He turns complex rules into clear, practical steps that business owners can act on.
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