Updated for FY 2025-26

GST Interest & Penalty Calculator

Accurately calculate Section 50 Interest and Late Fees for GSTR-1, 3B, and Annual Returns. Includes logic for 0.04% Turnover Cap.

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GSTR-3B Delay

You pay Late Fee (Sec 47) AND Interest (Sec 50) on net cash tax liability.

Rate: ₹50/day (₹20 for Nil)

GSTR-1 Delay

Late fees apply even if no tax is payable. E-way bill blocking happens after 2 months.

Rate: ₹50/day

Annual Return (GSTR-9)

Capped at 0.04% of state turnover. Can be lakhs for big firms.

Rate: ₹200/day

Is there any Amnesty Scheme Active?

Currently, there is no active Amnesty Scheme for GSTR-3B or GSTR-1. Standard late fees apply. Government schemes are temporary and usually notified via CBIC circulars.

*Interest @ 18% is statutory and is almost NEVER waived by Amnesty schemes.

GST Late Fee Master Chart (2025)

Penalties under Section 47 of the CGST Act vary by return type. Use this matrix to find your exact liability.

Return TypeNil ReturnNormal ReturnMax Cap
GSTR-1 & GSTR-3B
Regular Monthly/Quarterly
₹20 / day₹50 / day₹500 (Nil)
₹10,000 (Normal)
GSTR-4
Composition Dealer
₹20 / day₹50 / day₹500 (Nil)
₹2,000 (Normal)
GSTR-5, 5A, 6, 7, 8
Special Returns (TDS/ISD/NR)
₹20 / day₹50 / dayStandard Cap Applies
GSTR-9 / 9C
Annual Return
₹200 / day₹200 / day0.04% of Turnover
GSTR-10
Final Return (Cancellation)
₹200 / day₹200 / day₹10,000 Fixed

Interest Under Section 50: The Hidden Cost

Unlike Late Fees, the GST Portal does not auto-populate interest for the current month. You must self-assess and pay it to avoid notices.

18% Interest

Applicable on Late Payment of tax.

Calculation Base: Only on Net Cash Liability. (Input Credit portion is free from interest).

24% Interest

Applicable on Excess ITC Claimed.

Condition: If you claimed wrong ITC and *utilized* it to pay tax, you must reverse it with 24% interest.

Manual Calculation Formula

Want to verify the numbers yourself? Here is how Section 50 Interest is calculated manually.

Example: Mr. Sharma's Case

Net Cash Liability: ₹50,000
Days Delayed: 20 Days
Calculation:(50,000 × 18% × 20) ÷ 365
Interest Payable:₹493

Note: Divide by 365 (or 366 in leap year) to get the exact daily interest value.

Consequences of Non-Filing

18% Accumulation

Interest meter keeps running every single day until you discharge the liability in cash.

E-Way Bill Blocked

If you miss filing for 2 consecutive periods, your E-Way Bill generation facility is instantly blocked (Rule 138E).

Registration Cancelled

The proper officer can suo-moto cancel your GSTIN under Section 29 if returns remain pending for 6 months.

How to Pay Late Fees?

1

Login to GST Portal & Go to 'Returns Dashboard'

2

Select the period for which you are filing the delayed return

3

The Portal auto-populates 'Late Fee' in the next month's return

4

For Interest, manually enter amount in Table 6.1 (Payment of Tax)

5

Create Challan & Pay via Net Banking / NEFT

Important Rule

You cannot file the current month's return until the Previous Month's Late Fee is paid. The system will force you to discharge the liability of the previous period before accepting the current GSTR-3B.

Quick Rules

  • GSTR-1/3B: Max penalty ₹10,000 (Normal) or ₹500 (Nil).
  • Interest: 18% p.a. only on Cash Portion (Net Liability).
  • Amnesty: Check specific notifications for waivers.

Frequently Asked Questions

Can I pay Late Fees using Input Tax Credit (ITC)?
Strictly No. As per GST Law, statutory penalties like Late Fee and Interest must be paid in CASH only via the Electronic Cash Ledger. You cannot utilize your Electronic Credit Ledger for this.
What if I filed a Nil Return late?
Even for Nil returns, a late fee is applicable. However, it is reduced to ₹20 per day (₹10 CGST + ₹10 SGST) instead of the standard ₹50 per day.
Does the GST Portal auto-calculate Interest?
No. While the portal auto-calculates Late Fees, it does NOT auto-calculate Interest for the current delay. You must self-assess (using this calculator) and enter the value manually to avoid a Demand Notice later.
Is there any maximum limit on Late Fees?
Yes. For GSTR-3B, the maximum late fee is usually capped at ₹10,000 per return (₹5,000 CGST + ₹5,000 SGST). For Nil returns, the cap is ₹500. However, during Amnesty Schemes, this cap may be reduced further.
Can Late Fee be waived?
Usually, the system does not allow waiver. However, the Government occasionally announces Amnesty Schemes for past periods where late fees are capped or waived. Check the latest CBIC notifications.
What happens if I don't pay Interest?
If you file your return but fail to pay the self-assessed interest, you will receive an automatic intimation (Form DRC-01B) or a Notice. The department can recover the amount directly from your Cash/Credit ledger.