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GST Late Fee & Section 50 Interest calculation for GSTR-3B and GSTR-1

GST Late Fee & Section 50 Interest Calculator

GST Statutory Compliance Utility • Rabi Agrawal & Associates

Calculate GSTR-3B / GSTR-1 Late Fees & Section 50 Interest

Compute exact statutory late fees under Section 47 (Notification 19/2021-CT daily rates & turnover caps) and Section 50 interest (18% p.a. on net cash liability • 24% p.a. on wrongly utilized ITC).

1GST Return & Turnover Classification

2Filing Timeline & Delay Window

e.g. 20th of the following month
Days of Delay: 74 days

3Net Cash Tax Liability (Sec 50(1) @ 18% p.a.)

Interest is charged strictly on the Net Cash portion paid via Electronic Cash Ledger (post-amendment to Section 50(1)). Tax paid through ITC balance attracts 0% interest.

4Wrongly Availed & Utilized ITC (Sec 50(3) @ 24% p.a.)

Optional: Applicable only if ineligible ITC was both availed AND utilized to set off output liability (Rule 88B(3)).

GST Compliance Outflow

GSTR-3B Late Filing Cost

74 Days Late
Total Statutory Liability Payable₹2,000Late Fee: ₹2,000 | Interest: ₹0
1. Late Fee (Sec 47):₹2,000
CGST: ₹1000 | SGST: ₹1000Capped at Max ₹2,000
2. Delayed Cash Interest (Sec 50(1) @ 18%):₹0
Cash Base: ₹074 days @ 18% p.a.
💬 Consult CA for GST Notice / DRC-01A
§47

Section 47 & Notification 19/2021

Late fee is rationalized to ₹50/day for regular filers and ₹20/day for Nil filers, subject to turnover-based statutory caps (₹500 for Nil up to ₹10,000 for >₹5 Cr).

18%

Section 50(1) Net Cash Interest

Interest at 18% p.a. applies strictly on net cash liability paid via Electronic Cash Ledger after eligible ITC set-off, as confirmed by retrospective Finance Act amendments.

24%

Section 50(3) & Rule 88B(3)

Interest at 24% p.a. applies only when ineligible ITC is both wrongly availed AND utilized against output tax liability. Unutilized credit in ledger incurs 0% interest.

GST Compliance Knowledge

Frequently Asked Questions — GST Late Fees & Interest

What is the daily GST late fee for GSTR-3B and GSTR-1?
For regular returns with tax or outward supplies, the statutory late fee is ₹50 per day (₹25 CGST + ₹25 SGST). For Nil returns (no outward supplies and zero tax liability), the late fee is rationalized to ₹20 per day (₹10 CGST + ₹10 SGST) under Notification No. 19/2021-Central Tax.
What is the maximum late fee cap under Section 128 of the CGST Act?
Under Notification No. 19/2021-CT, maximum late fees are capped based on preceding financial year aggregate turnover (AATO): (1) Nil returns: Capped at ₹500 (₹250 CGST + ₹250 SGST); (2) Turnover up to ₹1.5 Crore: Capped at ₹2,000 (₹1,000 CGST + ₹1,000 SGST); (3) Turnover ₹1.5 Cr to ₹5 Crore: Capped at ₹5,000 (₹2,500 CGST + ₹2,500 SGST); (4) Turnover above ₹5 Crore: Capped at ₹10,000 (₹5,000 CGST + ₹5,000 SGST).
How is Section 50(1) interest calculated on delayed GST payment?
Section 50(1) levies interest at 18% per annum. As per the retrospective amendment to Section 50(1) by the Finance Act 2021, interest is charged strictly on the 'Net Cash Tax Liability' paid through the Electronic Cash Ledger (after adjusting eligible Input Tax Credit from the credit ledger).
When does 24% interest apply under Section 50(3)?
Under Section 50(3) read with Rule 88B(3), interest at 24% per annum is levied only when Input Tax Credit (ITC) has been both wrongly availed AND utilized against output tax liability. If wrongful ITC was availed but remained unutilized in the electronic credit ledger, zero interest is payable.
Can GST late fees be paid using Input Tax Credit (ITC)?
No. Under GST law, late fees and interest cannot be settled using Input Tax Credit. They must be debited strictly from the Electronic Cash Ledger by generating a challan and depositing cash.
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