How to Calculate GST Late Fees Under Section 47 and Interest Under Section 50 on Delayed Returns

The Financial Consequence of Missing GSTR-3B Deadlines

Filing GSTR-3B past the 20th of the following month triggers two independent statutory charges: Late Fees under Section 47 and Interest under Section 50. Knowing how these are computed helps taxpayers plan working capital and avoid portal payment blocks.

Section 47 Daily Late Fees

• Regular Returns with Tax Liability: ₹50 per day of delay (₹25 CGST + ₹25 SGST), capped based on turnover slabs.
• Nil Returns (Zero Outward & Inward Supplies): ₹20 per day of delay (₹10 CGST + ₹10 SGST), maximum cap ₹500.

Section 50 Interest @ 18% on Net Cash Liability

Crucially, following the landmark amendment to Section 50(1), interest is payable ONLY on the net tax paid through Electronic Cash Ledger, NOT on the gross liability offset using Input Tax Credit.