Filing GST returns late costs money in two ways: a daily late fee for the delay, and interest on any tax paid late. Understanding both helps you file on time and estimate the cost if you slip.
This guide explains how GST late fees and interest are calculated.
What is GST Late Fees and Interest?
The late fee is a per-day charge that accrues until the return is filed, subject to a cap linked to turnover. Interest is charged on the net tax paid after the due date.
Late fees apply per return (CGST + SGST components), and nil returns have a lower fee.
| Late fee (normal) | ₹50 per day (₹25 CGST + ₹25 SGST) |
|---|---|
| Late fee (nil return) | ₹20 per day (₹10 + ₹10) |
| Interest on late tax | 18% per annum |
| Cap | Turnover-linked maximum late fee |
Frequently asked questions
What is the interest rate on late GST payment?
18% per annum on the net tax paid after the due date; 24% may apply on undue or excess ITC claims.
Is there a late fee for nil returns?
Yes, but a reduced fee of ₹20 per day applies to nil returns.