GST late fees, interest and penalties
Updated 11 October 2026
Filing a GSTR-3B or GSTR-1 late costs a late fee of ₹50 a day (₹20 a day for a nil return), capped at between ₹2,000 and ₹10,000 per return depending on turnover. Tax paid late also attracts interest at 18% a year. Penalties apply to more serious failures, such as not registering, issuing invoices without a real supply or short-paying tax.
Late fees by return
| Return | Late fee per day (CGST + SGST) | Maximum per return |
|---|---|---|
| GSTR-3B or GSTR-1, nil return | ₹20 (₹10 + ₹10) | ₹500 |
| GSTR-3B or GSTR-1, turnover up to ₹1.5 crore | ₹50 (₹25 + ₹25) | ₹2,000 |
| GSTR-3B or GSTR-1, turnover ₹1.5 crore to ₹5 crore | ₹50 | ₹5,000 |
| GSTR-3B or GSTR-1, turnover above ₹5 crore | ₹50 | ₹10,000 |
| GSTR-4 (composition, annual) | ₹50 | ₹2,000 (₹500 if nil) |
| GSTR-9 annual return, turnover up to ₹5 crore | ₹50 | 0.04% of turnover |
| GSTR-9, turnover ₹5 crore to ₹20 crore | ₹100 | 0.04% of turnover |
| GSTR-9, turnover above ₹20 crore | ₹200 | 0.5% of turnover |
For GSTR-3B and GSTR-1, turnover means the previous financial year's aggregate turnover; for GSTR-9, the turnover in the state for that year. Late fee must be paid in cash, not from input tax credit. From 2024-25 onwards, taxpayers with turnover up to ₹2 crore do not have to file GSTR-9. The returns themselves are explained in GST returns.
Interest on late payment
- Tax paid late: 18% a year, from the day after the due date until payment, on the part of the tax paid in cash (the net amount after input tax credit).
- Input tax credit wrongly claimed and used: 18% a year on the credit that was wrongly taken and actually used.
Penalties
| Situation | Penalty |
|---|---|
| Not registering when required, supplying without an invoice, issuing invoices without a supply, or collecting tax and not paying it within three months (section 122) | ₹10,000 or the tax involved, whichever is higher |
| Tax short-paid or credit wrongly taken, without fraud (sections 73 and 74A) | 10% of the tax or ₹10,000, whichever is higher; nil if tax and interest are paid within 30 days (section 73) or 60 days (section 74A) of the notice |
| The same with fraud or wilful suppression (sections 74 and 74A) | 100% of the tax, reduced to 15% if paid before a notice, and to 25% or 50% if paid within set periods after the notice or the order |
| Any other breach with no specific penalty (section 125) | Up to ₹25,000 |
| Goods moving without proper documents, such as an e-way bill (section 129) | 200% of the tax on the goods, where the owner comes forward |
Sections 73 and 74 apply to tax periods up to 2023-24. Section 74A applies from 2024-25 and uses one set of time limits for both kinds of case. For moving goods, see e-way bill.
Other consequences of not filing
- Your buyers lose credit. Invoices you do not report in GSTR-1 do not reach your customers' GSTR-2B, so they cannot claim input tax credit and may stop buying from you.
- E-way bills are blocked. If GSTR-3B is not filed for two consecutive tax periods, the portal stops you generating e-way bills.
- Registration can be cancelled. Not filing returns for six months in a row (two quarters for quarterly filers) can lead to suspension and cancellation.
- Old returns lapse. From the July 2025 tax period, the portal does not accept a return filed more than three years after its due date.
Late fee: 25 days × ₹50 = ₹1,250 (₹625 CGST + ₹625 SGST), within the ₹2,000 cap.
Interest: ₹60,000 × 18% × 25 ÷ 365 = ₹740 (rounded).
Total extra cost: ₹1,990.
At 60 days late, the late fee would reach the ₹2,000 cap (60 × ₹50 = ₹3,000, capped) and interest would be ₹60,000 × 18% × 60 ÷ 365 = ₹1,775, a total of ₹3,775. If the month's GSTR-1 is also late, it carries its own late fee.
Changes recommended in October 2026
At its 57th meeting on 8 October 2026, the GST Council recommended easing several of these rules. None of them apply until the law is amended or a notification is issued:
- no late fee for taxpayers with turnover up to ₹5 crore in the previous year who file the return by the end of the month in which it was due;
- the maximum general penalty under section 125 cut from ₹25,000 to ₹10,000;
- no show cause notice where the tax involved is below ₹10,000;
- in non-fraud cases, removal of the ₹10,000 minimum penalty, and a 5% penalty where tax and interest are paid within 30 days (section 73) or 60 days (section 74A) of the order;
- removal of the power of arrest, and the prosecution threshold raised from ₹1 crore to ₹5 crore of tax.
Until then, the current figures above apply. The GST calculator helps check the tax on an invoice before you file, and the GST portal shows the late fee and interest when you file.