What is the late fee and interest for filing GST returns after the due date

Question

I could not file my GSTR-3B on time this month and I want to know what penalty and interest I now owe. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

What is the late fee and interest for filing GST returns after the due date is governed in India primarily by Central Goods and Services Tax Act, 2017, Section 47, Central Goods and Services Tax Act, 2017, Section 50 and CGST Rules, 2017, Rule 61. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

Section 47 of the CGST Act prescribes a late fee of Rs. 100 per day under CGST and an equal amount under SGST, subject to a capped maximum, for delayed filing of GSTR-3B or GSTR-1, with reduced caps notified for nil returns and small taxpayers.

Section 50 levies interest at 18% per annum on the tax paid late, calculated on the net cash tax liability from the day after the due date until actual payment, and a higher 24% rate applies to reversal of wrongly availed input tax credit.

Continued non-filing for two consecutive tax periods can trigger restrictions on generating e-way bills and, if prolonged beyond notified limits, can lead to suspension or cancellation of GST registration under Section 29.

Late fee and interest must be paid in cash through the electronic cash ledger and cannot be discharged using input tax credit, so cash flow planning is essential even where credit balance exists.

What to do next: 1) Compute the exact number of days of delay and the applicable late fee cap; 2) Calculate interest on net cash tax liability at 18% per annum; 3) Pay the late fee and interest through the cash ledger before filing; 4) File the pending return immediately to avoid registration suspension.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Central Goods and Services Tax Act, 2017, Section 47 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.