Quick answer: ₹50 per day of delay (₹25 CGST + ₹25 SGST), or ₹20 per day for a nil return, up to a cap based on turnover. On top of that, 18% yearly interest on the tax you pay late in cash.
Late fee per day
The late fee runs from the day after the due date until the day you file. It is charged under the CGST and SGST Acts and must be paid in cash. Input tax credit cannot be used for it.
| Type of GSTR-3B | Late fee per day | Maximum late fee |
|---|---|---|
| Nil return (no sales, no tax) | ₹20 (₹10 + ₹10) | ₹500 |
| Turnover up to ₹1.5 crore | ₹50 (₹25 + ₹25) | ₹2,000 |
| Turnover ₹1.5 crore to ₹5 crore | ₹50 (₹25 + ₹25) | ₹5,000 |
| Turnover above ₹5 crore | ₹50 (₹25 + ₹25) | ₹10,000 |
Turnover here means the aggregate turnover of the previous financial year. The same structure applies to a late GSTR-1.
Interest at 18% per year
Under section 50 of the CGST Act, interest is charged at 18% per year on the tax paid after the due date. It is calculated on the net tax paid in cash, after using input tax credit, from the day after the due date to the day of payment.
Formula: cash tax × 18% × days late ÷ 365
Worked examples
Example 1: ₹50,000 tax, 10 days late
- Late fee: 10 × ₹50 = ₹500
- Interest: ₹50,000 × 18% × 10 ÷ 365 = ₹247
- Total extra cost: ₹747
Example 2: nil return, 40 days late
- Late fee: 40 × ₹20 = ₹800, capped at ₹500
- Interest: nil, because no tax was payable
What else happens when GSTR-3B is pending
- Next returns get blocked. Returns must be filed in sequence, and GSTR-1 can be blocked while GSTR-3B is pending.
- E-way bills stop. E-way bill generation is blocked when GSTR-3B is pending for two months (or one quarter for QRMP filers).
- Buyers lose credit. Customers may hold your payments when your invoices do not appear in their GSTR-2B.
- Registration can be cancelled if returns are not filed for six months in a row.
How to keep the cost down
- File even if you cannot pay the full tax. The late fee stops once the return is filed; interest applies only to the unpaid tax.
- Always file nil returns on time. A nil return takes minutes and avoids the ₹500 cap building up every month.
- Reconcile purchases with GSTR-2B so you use all eligible credit and pay less in cash.
- If your turnover is up to ₹5 crore, consider the quarterly (QRMP) scheme to file fewer returns.
Behind on several months? We work out the exact late fee and interest for each period, file the backlog in the right order and set up reminders so it does not happen again.
Frequently asked questions
Is late fee charged on IGST?
No separate IGST late fee is charged for GSTR-3B. The late fee is levied under the CGST and SGST Acts, which is why it is split into two equal parts.
Can I pay late fee using input tax credit?
No. Late fee and interest must be paid in cash from the electronic cash ledger.
Is interest charged on the full tax or only cash tax?
Interest under section 50 applies to the tax paid in cash after the due date, that is, the net liability after using eligible input tax credit.
Can the late fee be waived?
Only when the government announces an amnesty or reduction by notification. Otherwise the portal calculates and collects it automatically.
What are the GSTR-3B due dates?
Monthly filers file by the 20th of the next month. Quarterly (QRMP) filers file by the 22nd or 24th of the month after the quarter, depending on their state. See our due-date calendar.
This guide is general information based on the law as on the date above. Rules and dates change through notifications, so check your own case with us before acting.