Notification No. 4/2018 – Central Tax: Waiver of Late Fee for Delay in Filing GSTR-1

GST 07 December 2025

Summary

Notification No. 4/2018–Central Tax provides relief to GST-registered persons by waiving late fees payable for delayed filing of GSTR-1. The notification caps the late fee at Rs. 25 per day for cases with outward supplies and Rs. 10 per day where no outward supplies are made, under Section 47 of the CGST Act, 2017.

The Central Government, exercising powers under Section 128 of the Central Goods and Services Tax Act, 2017, and on the recommendations of the GST Council, issued Notification No. 4/2018–Central Tax dated 23 January 2018, granting partial waiver of late fee payable for delayed filing of FORM GSTR-1.

Scope of Late Fee Waiver

The notification provides that the late fee payable under Section 47 of the CGST Act for failure to furnish details of outward supplies in FORM GSTR-1 by the due date shall be restricted as follows:

Cases with Outward Supplies

Late fee payable shall not exceed Rs. 25 per day for the period of delay.

Cases with No Outward Supplies (Nil GSTR-1)

Late fee payable shall not exceed Rs. 10 per day for the period of delay.

Any late fee in excess of the above amounts stands waived.

Practical Impact for Taxpayers

Provides significant compliance relief to taxpayers filing delayed GSTR-1 returns.
Encourages timely filing by reducing excessive late fee burden.
Especially beneficial for small taxpayers and those filing Nil GSTR-1.

Important Note

This notification deals only with waiver of late fee and does not affect the requirement to file GSTR-1 or other GST returns as prescribed under the CGST Act and Rules.

Reference

Notification No. 4/2018 – Central Tax, dated 23 January 2018
Issued under Section 128 of the CGST Act, 2017

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Frequently Asked Questions

What is the late fee cap for delayed GSTR-1 filing under Notification 4/2018 Central Tax?

Under Notification No. 4/2018–Central Tax dated 23 January 2018, the late fee for delayed GSTR-1 filing is capped at Rs. 25 per day where outward supplies exist. For Nil GSTR-1 (no outward supplies), the cap is Rs. 10 per day. Any late fee exceeding these amounts under Section 47 of the CGST Act, 2017 stands waived by the Central Government.

What is the late fee for filing Nil GSTR-1 after due date under GST?

For taxpayers with no outward supplies (Nil GSTR-1), the late fee is capped at Rs. 10 per day of delay as per Notification No. 4/2018–Central Tax. This provides significant relief to small taxpayers and businesses with no sales activity during a tax period. Any additional late fee chargeable under Section 47 of the CGST Act beyond this limit is waived.

Under which section of CGST Act is late fee for GSTR-1 non-filing charged?

Late fee for failure to furnish GSTR-1 (details of outward supplies) by the due date is levied under Section 47 of the Central Goods and Services Tax Act, 2017. The Central Government used its powers under Section 128 of the CGST Act to grant partial waiver of this late fee through Notification No. 4/2018–Central Tax, reducing the burden on GST-registered taxpayers.

Does Notification 4/2018 Central Tax waive the requirement to file GSTR-1?

No. Notification No. 4/2018–Central Tax only provides relief by capping the late fee for delayed GSTR-1 filing. It does not waive or exempt the legal obligation to file GSTR-1 under the CGST Act and Rules. Taxpayers are still required to furnish their outward supply details in FORM GSTR-1 within prescribed due dates; only the excess late fee liability is waived.

Who benefits most from GSTR-1 late fee waiver under Notification 4/2018?

Notification No. 4/2018–Central Tax is especially beneficial for small taxpayers, composition dealers, and businesses filing Nil GSTR-1 returns. By capping late fees at Rs. 10–Rs. 25 per day instead of the higher statutory amount under Section 47 of the CGST Act, it reduces financial burden for delayed filers, encourages GST compliance, and provides relief to taxpayers who inadvertently missed filing deadlines.

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