Statutory Provisions for GST Late Fees (Section 47) & Interest (Section 50)
Timely filing of monthly and quarterly GST returns is essential for maintaining active GST compliance. If a registered taxpayer fails to file GSTR-3B or GSTR-1 by the statutory due date (20th of the following month for monthly filers), the GST portal automatically calculates late fees under Section 47 and statutory interest under Section 50.
CBIC Maximum Late Fee Rationalization Caps
| Taxpayer Category / Turnover | Daily Late Fee | Maximum Cap (CGST + SGST) |
|---|---|---|
| NIL Return (Zero Tax Liability) | ₹20 / day | ₹500 per return |
| Taxable (Turnover up to ₹1.5 Crore) | ₹50 / day | ₹2,000 per return |
| Taxable (Turnover ₹1.5 Cr to ₹5 Crore) | ₹50 / day | ₹5,000 per return |
| Taxable (Turnover Above ₹5 Crore) | ₹50 / day | ₹10,000 per return |
Frequently Asked Questions (FAQs)
What is the daily GST late fee for GSTR-3B and GSTR-1?
For NIL returns, the late fee is ₹20 per day (₹10 CGST + ₹10 SGST). For returns with tax liability, the late fee is ₹50 per day (₹25 CGST + ₹25 SGST) up to the statutory maximum cap based on annual turnover.
What is the statutory interest rate for delayed GST payment under Section 50?
Under Section 50(1) of the CGST Act, interest @ 18% per annum is charged on net cash tax liability from the day following the due date until the actual date of payment.
What are the maximum late fee caps for GSTR-3B?
Under CBIC rationalization notifications, the maximum late fee per return is capped at: (1) ₹500 for NIL return, (2) ₹2,000 for turnover up to ₹1.5 Cr, (3) ₹5,000 for turnover between ₹1.5 Cr to ₹5 Cr, and (4) ₹10,000 for turnover above ₹5 Cr.
