📌 Introduction
In India’s GST regime, timely filing of returns is not just a best practice — it’s a legal mandate. Whether you're a small trader, startup, or a large enterprise, missing the GST return filing deadlines can attract late fees and interest.
The late fee structure for GST returns has evolved over time, with the government offering relief to small taxpayers but also tightening compliance norms. This blog explains the latest GST late fee provisions (2025 update) and how businesses can stay on the right side of the law.
🧾 What is a Late Fee Under GST?
A late fee is a fixed monetary penalty charged per day when a registered person fails to file GST returns within the due date.
Late fees are applicable on:
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GSTR-1 (Outward supply return)
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GSTR-3B (Summary return)
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GSTR-4 (For composition scheme)
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GSTR-9/9C (Annual return and reconciliation)
💰 Current Late Fee Structure for GST Returns (As of April 2025)
The late fee is calculated based on:
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Number of days of delay
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Type of return
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Taxpayer’s turnover
Let’s break it down:
📄 1. Late Fee for GSTR-3B & GSTR-1
| Category | Late Fee Per Day | Maximum Cap Per Return |
|---|---|---|
| Taxpayers with Nil Return | ₹10 CGST + ₹10 SGST = ₹20 | ₹500 (₹250 CGST + ₹250 SGST) |
| Turnover up to ₹1.5 Cr | ₹25 CGST + ₹25 SGST = ₹50 | ₹2,000 (₹1,000 + ₹1,000) |
| Turnover ₹1.5 – ₹5 Cr | ₹25 CGST + ₹25 SGST = ₹50 | ₹5,000 (₹2,500 + ₹2,500) |
| Turnover above ₹5 Cr | ₹50 CGST + ₹50 SGST = ₹100 | ₹10,000 (₹5,000 + ₹5,000) |
📄 2. Late Fee for GSTR-9 (Annual Return)
| Turnover | Late Fee Per Day | Maximum Cap |
|---|---|---|
| Any registered taxpayer | ₹100 (₹50 CGST + ₹50 SGST) | 0.25% of turnover in State/UT |
📄 3. Late Fee for GSTR-4 (Composition Dealers)
| Return Type | Late Fee Per Day | Maximum Cap |
|---|---|---|
| GSTR-4 | ₹100 (₹50 CGST + ₹50 SGST) | ₹500 per Act = ₹1,000 |
⚠️ Interest on Late Payment of Tax
Apart from late fees, interest at 18% per annum is also charged on the net tax liability if the return is filed late with unpaid tax.
🛠️ How is the Late Fee Calculated?
Here’s a simple formula:
Late Fee = Per Day Fee × No. of Days Delayed
📌 Example: If a taxpayer with ₹1 Cr turnover files GSTR-3B 10 days late:
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Late fee = ₹50/day (₹25 CGST + ₹25 SGST)
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Total late fee = ₹500 (capped at ₹2,000 for turnover < ₹1.5 Cr)
🔄 Waiver and Reduction Notifications (When Applicable)
From time to time, the government issues notices of waiver or reduction in late fees, especially:
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During COVID-19 period
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During transition phases (e.g., new return system rollout)
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For promoting compliance in small businesses
Always stay updated with CBIC notifications or consult your GST advisor.
🔍 Common Mistakes That Lead to Late Fees
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Forgetting due dates (especially for quarterly filers)
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Filing Nil returns late assuming no penalty
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Filing GSTR-1 and ignoring GSTR-3B
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Waiting till the last date when portal is overloaded
📅 Due Dates You Should Always Remember (2025 Edition)
| Return Type | Due Date |
|---|---|
| GSTR-1 | 11th of next month (monthly) or quarterly as opted |
| GSTR-3B | 20th/22nd/24th (based on turnover and state) |
| GSTR-4 | 30th April (annually for composition scheme) |
| GSTR-9 | 31st December (following the financial year) |
🧑💼 How Businesses Can Avoid Late Fees
Here are practical tips to stay compliant:
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Set Reminders: Use Google Calendar or accounting software alerts.
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Hire a GST Consultant: Especially if you deal with multiple returns.
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Use Auto-Fill Tools: Reduce return preparation time.
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Avoid Last-Minute Filing: The portal slows down near deadlines.
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Check Nil Return Requirement: Even with zero turnover, filing is mandatory.
🏢 How Verotus Finlegal Solutions LLP Can Help
At Verotus Finlegal Solutions LLP, we offer:
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✅ End-to-end GST return filing
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✅ Due date tracking and reminders
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✅ Late fee mitigation and planning
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✅ Professional representation in case of GST notices
Let us handle your compliance while you focus on your business.
📌 Conclusion
Understanding the late fee structure for GST returns is essential for any business aiming to stay compliant and financially efficient. With increasing scrutiny from tax authorities and automated systems in place, regular and timely return filing is the only way to stay ahead.
Don’t let a small delay cost you big!
📞 Need Help with GST Return Filing or Compliance?
Connect with our experts at Verotus Finlegal Solutions LLP
🌐 www.verotusllp.com
📧 verotusllp@gmail.com
📍 Kolhapur, Maharashtra
📞 +91-7066336680
