GST late fee & interest
The cost of filing a return late
Worked example
Using the default values, gst late fee & interest gives a total cost of filing late of ₹2,240.
| Item | Value |
|---|---|
| Rate | ₹50 a day |
| Split | ₹25 CGST + ₹25 SGST |
| Days late | 30 |
| Fee before cap | ₹1,500 |
| Cap | ₹5,000 |
| Late fee payable | ₹1,500 |
| Charged on | ₹50,000 |
| Rate | 18% a year |
| Interest | ₹740 |
| Late fee plus interest | ₹2,240 |
| Tax plus everything | ₹52,240 |
What you need
- Tax payable in the return
- Days late
- Return
- Late fee cap
- Interest rate
Questions
Is interest charged on the whole tax or only the cash portion?
Only on the amount actually paid in cash. Where the liability was already covered by input tax credit sitting in your electronic credit ledger, interest does not run on that part.
Does a nil return attract a late fee?
Yes, ₹20 a day, even though no tax is due. Filing a nil return on time costs nothing and takes a minute.
Important
Late fee is ₹50 a day for a return with tax to pay and ₹20 a day for a nil return, split equally between CGST and SGST. The cap depends on turnover and on the return type, and the government has run amnesty schemes that reduce it — set the cap above to whatever applies to you. Interest runs at 18% a year on tax paid late, and 24% on input tax credit that was wrongly claimed and utilised. Interest is charged on the net cash liability, not the gross tax, where the credit was already in your ledger.