Question 1

What is the late fee for GSTR-3B?

Accepted Answer

₹50 per day of delay (₹25 under CGST and ₹25 under SGST/UTGST), capped by your aggregate turnover in the preceding financial year: ₹2,000 for turnover up to ₹1.5 crore, ₹5,000 for ₹1.5 crore to ₹5 crore, and ₹10,000 above ₹5 crore. A nil GSTR-3B attracts ₹20 per day, capped at ₹500. These caps apply from the June 2021 tax period onward under Notification 19/2021-Central Tax.

Question 2

Is the GSTR-1 late fee the same as GSTR-3B?

Accepted Answer

Yes. Notification 20/2021-Central Tax applies the same per-day rates and turnover-based caps to GSTR-1. The difference is that GSTR-1 carries no tax payment, so there is no interest under Section 50 for a late GSTR-1, only the late fee.

Question 3

How is interest on late GST payment calculated?

Accepted Answer

Interest under Section 50(1) is 18% per annum, simple interest, on the net tax liability paid through the electronic cash ledger, from the day after the due date until the date of payment. It is computed on a daily basis: tax × 18% × days late ÷ 365. There is no interest on the portion of liability discharged through input tax credit, and no interest on a nil return.

Question 4

Is late fee charged on IGST?

Accepted Answer

No. Late fee is levied under Section 47 of the CGST Act and the matching SGST or UTGST Act, so it is always split equally between CGST and SGST. The IGST Act has no late fee provision. Interest under Section 50, however, applies to IGST liability paid late in the same way as CGST and SGST.

Question 5

What is the late fee for GSTR-9 (annual return)?

Accepted Answer

From FY 2022-23 onward, under Notification 07/2023-Central Tax, it is graded by turnover: ₹50 per day (capped at 0.04% of turnover) for turnover up to ₹5 crore, ₹100 per day (capped at 0.04%) for ₹5 crore to ₹20 crore, and ₹200 per day (capped at 0.5%) above ₹20 crore. Each figure is the combined CGST and SGST amount. GSTR-9C has no separate late fee but is filed with GSTR-9.

Question 6

Is the late fee waived if I file a nil return?

Accepted Answer

Not waived, but reduced. A nil GSTR-3B or GSTR-1 attracts ₹20 per day (₹10 CGST and ₹10 SGST) capped at ₹500. A nil return still has to be filed on time to avoid it. Nil returns can be filed by SMS, which takes a minute.

Question 7

Can late fee be paid through input tax credit?

Accepted Answer

No. Late fee, interest and penalty must be paid in cash through the electronic cash ledger. ITC can only be used against output tax. The portal will not let you file the return until the late fee for the previous period is paid.

Question 8

Does the late fee stop accumulating at some point?

Accepted Answer

It stops at the cap for the applicable turnover slab. But the return remains unfiled, which blocks subsequent returns, blocks your customers' ITC for your invoices under IMS, and after a prolonged default can lead to cancellation of registration. The three-year filing bar introduced in 2025 also means very old returns can no longer be filed at all.

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