Filing your Goods and Services Tax (GST) returns after the designated statutory due dates triggers automated late fees and interest charges. Understanding how these liabilities accumulate is key to avoiding penalties.
GSTR-3B Late Fee Structure
Late filing fees for GSTR-3B are calculated based on the tax liability of the return period:
- Nil Return: If there are no sales or purchases to declare, the late fee is capped at ₹20 per day (₹10 CGST + ₹10 SGST) up to a maximum cap of ₹500.
- Taxable Return: If there is active transactions, the late fee is ₹50 per day (₹25 CGST + ₹25 SGST) up to a maximum cap of ₹5,000 or ₹10,000 depending on annual aggregate turnovers.
Section 50 Interest Calculations (18% p.a.)
In addition to late fees, Section 50 of the CGST Act mandates the payment of interest on delayed tax payments:
Interest is charged at **18% per annum** on the net tax liability paid through the electronic cash ledger (excluding Input Tax Credit balances). If you pay tax late, interest is computed daily from the day following the due date until the actual date of payment.
Formula to Calculate Net Interest:
Interest = (Net Tax Liability * 18/100) * (Number of Delayed Days / 365)