A GST return filed a few days late costs more than most owners expect, because the late fee and interest run separately. Here is how each is worked out and how to stay clear of both.
The late fee
For GSTR-3B and GSTR-1 the late fee is ₹50 a day, split equally between CGST and SGST, or ₹20 a day for a nil return. It runs from the day after the due date until you file. The fee is capped per return:
| Aggregate turnover last year | Cap per return | Nil return cap |
|---|---|---|
| Up to ₹1.5 crore | ₹2,000 | ₹500 |
| ₹1.5 crore to ₹5 crore | ₹5,000 | ₹500 |
| Above ₹5 crore | ₹10,000 | ₹500 |
The late fee must be paid in cash. It cannot be set off against input tax credit.
Interest
Interest is 18% a year on the tax paid in cash, after input tax credit, for each day it is late. Unlike the late fee, it has no cap. On ₹50,000 of tax paid 30 days late, interest is about ₹740.
A monthly routine that keeps you on time
- By the 5th: close sales and purchase entries for the previous month.
- By the 7th: deposit TDS deducted in the previous month.
- By the 10th: match purchases with GSTR-2B and chase suppliers for missing invoices.
- By the 11th: file GSTR-1 (monthly filers).
- By the 20th: file GSTR-3B and pay the tax (monthly filers). Quarterly filers under QRMP have later dates.
If you know a return will be late, pay the tax first. Interest stops when the tax is paid, even if the return follows later.
Work out your exact figure with our free GST late fee calculator.
