GSTR-3B Late Fee and Interest: How They Are Calculated
5 min read · GST
Miss a GSTR-3B deadline and two separate charges kick in: a late fee under §47 and interest under §50. They are calculated differently, and confusing them is a common source of wrong payments. Here's exactly how each works.
1. Late fee (§47)
The late fee accrues per day of delay from the day after the due date until you file. The standard rate is ₹50 per day (₹25 CGST + ₹25 SGST). For a nil return it's ₹20 per day (₹10 + ₹10). The fee is capped — and the cap is slabbed by turnover (a nil return caps at ₹500; small taxpayers at ₹2,000; larger ones higher). IGST does not carry a separate late fee.
Example: a regular return filed 10 days late = 10 × ₹50 = ₹500 late fee (₹250 CGST + ₹250 SGST), subject to the cap.
2. Interest (§50)
Interest is 18% per annum, charged only on the portion of tax you pay in cash (the net cash ledger liability) — not on the part settled by input tax credit. This follows the 2021 amendment to §50, which limited interest to the net cash liability. It runs from the day after the due date to the date of payment.
Example: ₹1,00,000 cash tax paid 30 days late = ₹1,00,000 × 18% × 30/365 ≈ ₹1,479 interest. Where excess ITC was availed and reversed, that portion attracts a higher 24% rate.
Key points people get wrong
Interest is on the cash liability, not the total tax — a business with large ITC pays far less interest than the sticker tax suggests. The late fee is a fixed per-day charge independent of the tax amount. And both keep running until you actually file, so filing a nil or partial return promptly still stops the late-fee clock.
OnGravy prepares GSTR-3B from your books, ties it to GSTR-1, and shows the exact cash payable, interest and late fee.
Try OnGravy →General information, not tax advice. Rates and caps can change — confirm the current figures with your CA.