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GST late fee and interest explained

Missed a return or a payment? Here's exactly how late fees and interest add up — and how to stop the meter.

By the Launch My Office team · Updated 2026-06-22 · 5 min read

Late GST filing or payment carries two separate charges: a late fee for filing late, and interest for paying tax late. They accrue until you file and pay, so acting quickly limits the cost.

Late fee for returns

A per-day late fee applies for each return filed after the due date, split across CGST and SGST, subject to caps that depend on turnover and return type. Nil returns carry a smaller fee but it still applies.

Interest on late tax

Interest runs at 18% per annum on the net tax paid late, calculated from the due date until payment. Wrongly availed and utilised ITC can attract interest too.

ChargeRate / basis
Late feePer day, per return (capped)
Interest on tax18% p.a. from due date
Nil return late feeReduced per-day fee
Late fee is for late filing; interest is for late payment. Filing a nil return on time avoids the late fee even when no tax is due.

How to minimise it

  1. File pending returns immediately to stop late fees.
  2. Pay outstanding tax to stop interest.
  3. Set calendar reminders or use the compliance calendar.
  4. Consider QRMP if monthly filing is hard to keep up.

Stay ahead

Most late fees are avoidable with a simple filing routine. If you've fallen behind across states, our team can bring all your GSTINs current.

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Frequently asked questions

What's the interest rate on late GST payment?

18% per annum on the net tax paid late, from the due date until payment.

Is there a late fee for nil returns?

Yes, a reduced per-day late fee applies even when no tax is due, so file nil returns on time.

How do I stop the charges growing?

File the pending returns and pay the outstanding tax as soon as possible — both accrue daily until then.

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