GST late fees and interest: what a delay really costs

Written by Tax Paramarsh editorial teamReviewed by Tax Paramarsh GST deskLast updated 3 October 2026Applies to: GST rules in force on 3 October 2026

A late GST return costs more than the late fee. Interest, blocked e-way bills and lost buyer credit often cost more — and some returns can now no longer be filed at all.

Late fee

₹50 a day for GSTR-1 and GSTR-3B (₹25 CGST + ₹25 SGST), and ₹20 a day for nil returns.
Capped by turnover: ₹2,000 up to ₹1.5 crore, ₹5,000 up to ₹5 crore and ₹10,000 above, per return. Nil returns are capped at ₹500.

Interest

18% a year on tax paid late, on the portion paid in cash. Credit wrongly claimed and used attracts 24%.

The hidden costs

Your B2B buyers don’t get their credit and may hold your payments.
Continued non-filing can block e-way bills and lead to cancellation of registration.
Returns can’t be filed after three years from the due date.

Key takeaways

₹50/day (₹20 nil), capped by turnover.
18% interest on late tax.
Non-filing risks e-way bill blocks and cancellation.

Common questions

Is the late fee charged if no tax was due?

Yes — nil returns also attract a late fee, at ₹20 a day up to ₹500.

Can late fees be waived?

Only when the government announces an amnesty; otherwise they are payable before filing.

Need help with this every month?Tax Paramarsh can review your sales, purchases and GST records every month — and file on time.

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General information, reviewed on 3 October 2026 — not advice for your specific case. GST rules, forms and due dates change; talk to us before acting.