What is the GST interest rate under Section 50?

Under Section 50 of the CGST Act, interest on late payment of GST is charged at 18% per annum. For wrongly availed Input Tax Credit (ITC), the interest rate is higher at 24% per annum under Section 50(3).

From which date is GST interest calculated?

GST interest is calculated from the day after the due date of the return (GSTR-3B) to the date of actual payment. For monthly filers, the GSTR-3B due date is typically the 20th of the following month. Interest is calculated on the net tax liability — not on the gross amount before ITC offset.

What is the late fee for GSTR-3B?

The late fee for GSTR-3B is Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST) for returns with tax liability, subject to a maximum of Rs. 10,000. For nil returns (no tax liability), the late fee is Rs. 20 per day (Rs. 10 CGST + Rs. 10 SGST), subject to a maximum of Rs. 500.

What is the late fee for GSTR-1?

The late fee for GSTR-1 is Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST) for returns with outward supplies, subject to a maximum of Rs. 10,000. For nil returns, the late fee is Rs. 20 per day (Rs. 10 CGST + Rs. 10 SGST), subject to a maximum of Rs. 500.

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

As per the Supreme Court ruling and CBIC clarification (Circular 26/2022), GST interest under Section 50 is calculated on the net tax liability — the amount of tax actually paid in cash after offsetting eligible ITC. This means interest is not charged on the portion of tax covered by ITC in the electronic credit ledger.

GST Interest & Late Fee Calculator FY 2025-26 — Section 50

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Net tax paid in cash ₹ — exclude ITC portion

Return due date 20th for monthly filers

Actual payment date

ITC reversal case? 24% rate — Section 50(3)

18%

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and click Calculate.

GST Interest — Section 50 at a Glance

Under Section 50 of the CGST Act, interest is charged when GST is paid after the due date. Interest is calculated on the net tax liability paid in cash — the portion covered by ITC in your electronic credit ledger is excluded (Supreme Court ruling, affirmed by CBIC Circular 26/2022).

Situation	Rate	Section
Late payment of GST (standard)	18% p.a.	Sec 50(1)
Wrongly availed / utilised ITC	24% p.a.	Sec 50(3)
GSTR-3B late fee (taxable return)	₹50/day (max ₹10,000)	Sec 47
GSTR-3B late fee (nil return)	₹20/day (max ₹500)	Sec 47
GSTR-1 late fee (taxable return)	₹50/day (max ₹10,000)	Sec 47
GSTR-1 late fee (nil return)	₹20/day (max ₹500)	Sec 47

Interest formula: Tax Amount × Rate% × Days ÷ 365. Days are counted from the day after the due date to the actual payment date — both endpoints included as per CBIC practice.

Frequently Asked Questions

Interest is charged on the net tax liability paid in cash — the portion covered by ITC in your electronic credit ledger is excluded. This was confirmed by the Supreme Court and explicitly clarified by CBIC Circular 26/2022. This calculator uses the same logic.

For monthly filers, the GSTR-3B due date is the 20th of the following month. For quarterly filers under the QRMP scheme, the due date for the last month of each quarter is the 22nd or 24th depending on the state. Enter the applicable due date manually in the calculator.

Yes. The ₹50/day late fee comprises ₹25 CGST and ₹25 SGST. For nil returns, ₹20/day means ₹10 CGST and ₹10 SGST. The maximum cap also splits equally — ₹10,000 means ₹5,000 CGST and ₹5,000 SGST. For IGST returns (inter-state), the late fee is not split.

Interest under Section 50 is statutory — an adjudicating officer cannot waive it. However, the government can issue amnesty schemes or waiver notifications on the recommendation of the GST Council. Late fees can be waived under Section 128 by government notification. Several late fee waivers have been announced in the past — always check for current notifications before paying.

For a voluntary payment made via DRC-03, interest is calculated from the day after the original return due date to the date of DRC-03 filing. Enter the DRC-03 filing date in the "Actual payment date" field — the interest will be calculated automatically.

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