If you file GSTR-3B after the due date, you pay two separate charges: a late fee of ₹50 per day (₹20 per day for a nil return), capped based on your turnover, and interest at 18% per year on the tax paid late in cash. The late fee is fixed by Section 47 of the CGST Act, and interest is charged under Section 50. This guide explains how both are calculated, the current caps, due dates and how to keep the cost down.
What Is GSTR-3B and Why Late Filing Costs Money
GSTR-3B is the summary return in which a regular GST taxpayer declares outward supplies, claims input tax credit (ITC) and pays the net tax. Monthly filers file it every month, and taxpayers under the QRMP scheme file it every quarter.
Because GSTR-3B is the return through which tax is actually paid, a delay hits you in two ways:
- Late fee (Section 47): charged for every day the return is not filed, even if there is no tax to pay.
- Interest (Section 50): charged for every day the tax remains unpaid after the due date.
The GST portal does not allow you to file the next GSTR-3B until earlier pending returns are filed, so a single missed return can block your compliance for the following months too.
GSTR-3B Due Dates
| Type of taxpayer | GSTR-3B due date |
|---|---|
| Monthly filers | 20th of the following month |
| QRMP scheme (quarterly) – Category 1 states and UTs (such as Maharashtra, Gujarat, Karnataka, Tamil Nadu, Kerala, Telangana, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Goa) | 22nd of the month after the quarter |
| QRMP scheme (quarterly) – Category 2 states and UTs (such as Uttar Pradesh, Delhi, Bihar, Rajasthan, Punjab, Haryana, West Bengal, Odisha, Jharkhand, Assam) | 24th of the month after the quarter |
QRMP taxpayers also pay tax for the first two months of each quarter through Form PMT-06. If that payment is late, interest applies on it as well. Due dates can be extended by government notification, so always check the GST portal for the period you are filing.
Late Fee for GSTR-3B: Per Day Rate and Maximum Cap
The late fee is charged per day of delay, from the day after the due date until the day you file. It is split equally between CGST and SGST. For a regular return it is ₹25 CGST + ₹25 SGST, and for a nil return it is ₹10 CGST + ₹10 SGST.
The government has capped the maximum late fee per return based on aggregate turnover in the preceding financial year (Notification No. 19/2021-Central Tax, read with the matching state notifications):
| Situation | Late fee per day (CGST + SGST) | Maximum late fee per return |
|---|---|---|
| Nil return (no tax liability) | ₹20 | ₹500 |
| Turnover up to ₹1.5 crore | ₹50 | ₹2,000 |
| Turnover above ₹1.5 crore and up to ₹5 crore | ₹50 | ₹5,000 |
| Turnover above ₹5 crore | ₹50 | ₹10,000 |
Important points about the late fee
- The late fee must be paid in cash through the electronic cash ledger. It cannot be paid from your ITC balance.
- It applies even if you have no sales and no tax to pay (a nil return).
- The portal calculates the late fee automatically when you file the delayed return.
- Late fee paid is not refundable and is not allowed as input tax credit.
Interest on Late Payment of GST
Interest is charged under Section 50(1) of the CGST Act at 18% per year on the tax that is paid late. It runs from the day after the due date until the date of payment.
Interest is calculated only on the net cash liability, which is the part of the tax you pay through the electronic cash ledger. The part set off using ITC does not attract interest, as long as the return is filed in the normal course. However, if a return is filed only after proceedings under Section 73 or 74 have started, interest can be charged on the gross liability.
A separate provision, Section 50(3), applies where ITC was wrongly availed and utilised. In that case, interest is charged at the rate notified by the government on the ITC wrongly used.
Simple formula
Interest = Tax paid in cash x 18% x Number of days of delay / 365
Worked example
Suppose a trader with a turnover of ₹1 crore files the GSTR-3B for a month 30 days late. Total tax is ₹1,50,000, of which ₹50,000 is set off using ITC and ₹1,00,000 is paid in cash.
| Item | Calculation | Amount |
|---|---|---|
| Late fee | ₹50 x 30 days (below the ₹2,000 cap) | ₹1,500 |
| Interest | ₹1,00,000 x 18% x 30 / 365 | about ₹1,479 |
| Total extra cost | about ₹2,979 |
If the same business had no tax to pay that month (nil return) and filed 30 days late, the late fee would be ₹20 x 30 = ₹600, but it would be limited to the ₹500 cap.
How to File a Late GSTR-3B and Pay Late Fee and Interest
- Log in to the GST portal and go to Services > Returns > Returns Dashboard.
- Select the financial year and tax period of the pending return and open GSTR-3B.
- Check auto-populated values from GSTR-1 and GSTR-2B and fill in outward supplies and eligible ITC.
- Review interest and late fee. The portal shows a system-calculated figure. Interest values are editable, so verify them against your own calculation before you proceed.
- Deposit cash through Form PMT-06 (net banking, UPI, card, NEFT/RTGS or over the counter) for the cash part of tax, interest and late fee.
- Offset liability using ITC and the cash ledger, then file the return with DSC or EVC.
- Download the filed return and payment challan for your records.
File pending returns in order, from the oldest period to the latest, because the portal will not accept a later period while an earlier one is pending.
The Three-Year Time Limit: Old Returns Can Get Barred
Under amendments made by the Finance Act, 2023, a GST return cannot be filed after three years from its due date. GSTN has applied this restriction on the portal from 1 August 2025, and it covers GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-6, GSTR-7, GSTR-8 and GSTR-9/9C.
This means that if a GSTR-3B is left unfiled for more than three years, you lose the option to file it at all, and the department may instead assess the tax and raise a demand. If you have very old pending returns, file them before they cross the three-year mark.
Other Consequences and Common Mistakes
Apart from late fee and interest, not filing GSTR-3B can lead to:
- Blocking of e-way bills when returns are pending beyond the limit set in the rules.
- Notices such as GSTR-3A (notice to a non-filer) and best-judgement assessment.
- Suspension or cancellation of GST registration if returns are not filed for a continuous period specified in the law.
- Loss of ITC for your buyers, which can hurt business relationships.
Common mistakes that increase the cost:
- Waiting to file until you have funds to pay the full tax. Filing on time and paying what you can reduces both late fee and interest.
- Paying interest on the gross tax instead of the net cash portion.
- Trying to pay the late fee from the ITC ledger, which the portal does not allow.
- Ignoring a nil return because there were no sales. Nil returns also attract late fee.
- Not reconciling ITC with GSTR-2B, which can lead to wrong ITC claims and higher interest later.
If you have already received a notice for mismatch or short payment, our free formats library has notice reply drafts you can use as a starting point.
How Company Mitra Helps
Company Mitra helps businesses stay on top of GST filings so that late fee and interest do not pile up:
- Monthly and quarterly GSTR-3B filing with ITC reconciliation against GSTR-2B. See our GSTR-3B filing service.
- Clearing pending returns in the correct order, with correct calculation of late fee and interest.
- New GST registration for businesses that are just starting out. See GST registration.
- Due date reminders so you do not miss the 20th, 22nd or 24th.
Our experts review your data before filing, so that you pay only what the law requires.
Frequently Asked Questions
What is the late fee for GSTR-3B per day?
₹50 per day (₹25 CGST + ₹25 SGST) for a regular return and ₹20 per day (₹10 CGST + ₹10 SGST) for a nil return, subject to the maximum cap for your turnover slab.
What is the maximum late fee for GSTR-3B?
₹500 for a nil return, ₹2,000 for turnover up to ₹1.5 crore, ₹5,000 for turnover between ₹1.5 crore and ₹5 crore, and ₹10,000 for turnover above ₹5 crore, per return.
Is interest charged on the full tax or only on the cash portion?
Interest at 18% is charged only on the net tax paid in cash, provided the return is filed in the normal course. Tax set off from ITC does not attract interest.
Can I pay the GSTR-3B late fee using ITC?
No. Late fee and interest must be paid in cash through the electronic cash ledger.
Can the GSTR-3B late fee be waived?
The late fee can be waived or reduced only through a government notification, usually issued as an amnesty for specific periods. There is no general waiver.
What happens if I do not file GSTR-3B for three years?
After three years from the due date, the portal will not accept the return. The department can assess your tax liability and raise a demand with interest and penalty.
Need Help?
Pending GSTR-3B returns get more expensive every day. Let our experts calculate your exact late fee and interest and file your returns correctly.
Need help? Chat with our experts on WhatsApp: https://wa.me/919565039651
This article is for general information; please verify with the latest notifications or consult a professional before acting.