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GST Late Fee: How to Calculate Penalties and Avoid Them

TaxGuru
Read full article →taxguru.in

Summary

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  • Missing GST return deadlines can lead to hefty penalties, with late fees of Rs. 50 per day and interest at 18% on unpaid tax under Sections 47 and 50 of the CGST Act.
  • The maximum late fee is capped at ₹10,000 for GSTR-3B returns, but many taxpayers unknowingly pay more due to portal errors.
  • Currently, there are no active amnesty schemes for FY 2025-26, meaning full late fees apply for overdue returns filed after April 2023.
  • Taxpayers are advised to file promptly and verify late fee calculations against caps to avoid unnecessary costs and complications.

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