What is the GST interest rate under Section 50?

Interest on late payment of GST is 18% per annum under Section 50(1). Interest on input tax credit that was wrongly availed and utilised is also 18% per annum under Section 50(3), as notified from 1 July 2017. Interest under Section 50(3) applies only when the wrong ITC was actually utilised.

From which date is GST interest calculated?

Interest runs from the day after the due date up to and including the date of payment. For example, if GSTR-3B was due on 20 October and filed on 25 October, interest is charged for 5 days.

What is the maximum late fee for GSTR-3B and GSTR-1?

The late fee is Rs. 50 per day (Rs. 20 per day for a nil return). The maximum depends on the aggregate turnover of the previous year: Rs. 2,000 up to Rs. 1.5 crore, Rs. 5,000 from Rs. 1.5 crore to Rs. 5 crore, and Rs. 10,000 above Rs. 5 crore. For nil returns the maximum is Rs. 500 (Notifications 19/2021 and 20/2021).

What is the late fee for GSTR-9?

From FY 2022-23, the GSTR-9 late fee is Rs. 50 per day for turnover up to Rs. 5 crore and Rs. 100 per day from Rs. 5 crore to Rs. 20 crore, both capped at 0.04% of turnover in the state. Above Rs. 20 crore it is Rs. 200 per day, capped at 0.5% of turnover in the state (Notification 07/2023).

Is GST interest calculated on gross tax or net tax after ITC?

Under the proviso to Section 50(1), interest on tax for a return filed late is charged only on the part paid in cash (through the electronic cash ledger). This does not apply if the return is filed after proceedings under Section 73 or 74 have started for that period. In that case interest is charged on the full tax.

GST Interest & Late Fee Calculator

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Late payment of taxSection 50(1) — 18% p.a. (late GSTR-3B, DRC-03) ITC wrongly availed & utilisedSection 50(3) — 18% p.a., only on ITC actually utilised

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Tax period

Due date

Payment / filing date

Return filed after a notice under Sec 73 / 74 was issued for this period Then interest is on the full tax — enter tax paid through ITC also.

Tax paid in cash ₹ — leave ITC-paid part out

IGST CGST SGST / UTGST Cess

SGST copies CGST automatically — change it if different.

18%

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Due date fills in automatically from the tax period.

GST Interest & Late Fee at a Glance

Under Section 50 of the CGST Act, interest is charged when GST is paid after the due date. For a return filed late, interest is charged only on the tax paid in cash — tax set off from ITC is left out (proviso to Section 50(1), effective from 1 July 2017). This relief does not apply if the return is filed after proceedings under Section 73 / 74 have started.

Situation	Rate / fee	Maximum
Late payment of tax — Sec 50(1)	18% p.a.	—
ITC wrongly availed & utilised — Sec 50(3)	18% p.a.	Only on ITC utilised
GSTR-3B / GSTR-1 — with tax or supplies	₹50/day	₹2,000 (turnover ≤ ₹1.5 Cr) ₹5,000 (₹1.5–5 Cr) ₹10,000 (above ₹5 Cr)
GSTR-3B / GSTR-1 — nil return	₹20/day	₹500
GSTR-4 (composition, annual)	₹50/day (nil: ₹20)	₹2,000 (nil: ₹500)
GSTR-9 — turnover up to ₹5 Cr	₹50/day	0.04% of turnover in the state
GSTR-9 — ₹5 Cr to ₹20 Cr	₹100/day	0.04% of turnover in the state
GSTR-9 — above ₹20 Cr	₹200/day	0.5% of turnover in the state

Late fee is split equally between CGST and SGST. Interest formula: Tax × 18% × Days ÷ 365, where days run from the day after the due date up to and including the payment date (due 20 Oct, paid 25 Oct = 5 days). Late fee caps: Notifications 19/2021, 20/2021, 21/2021 and 07/2023 (GSTR-9, FY 2022-23 onwards).

Frequently Asked Questions

For a return filed late, interest is charged only on the tax paid in cash — the part set off from ITC is left out. This comes from the proviso to Section 50(1), inserted in 2019 and made effective from 1 July 2017. It does not apply if the return was filed after proceedings under Section 73 or 74 had started for that period — then interest is on the full tax. Tick that option in the calculator if it applies.

18%. Section 50(3) was substituted by the Finance Act 2022 (effective from 1 July 2017) and the rate notified is 18% p.a. Interest applies only if the wrong ITC was availed and utilised. Under Rule 88B it runs from the date of utilisation to the date of reversal or payment. ITC that was only availed and never utilised attracts no interest.

Monthly filers: the 20th of the next month. Quarterly (QRMP) filers: the 22nd or 24th of the month after the quarter, depending on the state — the 24th for UP, Delhi, Bihar and other northern and eastern states. The calculator fills the due date for you from the tax period, including any extension saved for that period.

Yes. ₹50/day is ₹25 CGST + ₹25 SGST, and the maximum is also split equally (for example ₹2,000 = ₹1,000 + ₹1,000). This is the same even if your supplies are inter-state (IGST) — late fee is not charged under IGST.

No. Since the Finance Act 2023 amendment (applied on the portal from July 2025), GSTR-1, GSTR-3B, GSTR-4, GSTR-9 and some other returns cannot be filed after 3 years from their due date. The calculator warns you if your dates cross this limit.

Interest under Section 50 is statutory — an officer cannot waive it. The government can waive interest or late fee by notification on the GST Council's recommendation (Section 128 / 128A), as has been done in amnesty schemes. Always check for a current notification before paying.

Interest runs from the day after the original due date of the return for that period to the date of the DRC-03 payment. Choose the return and tax period, and enter the DRC-03 date as the payment date.