Goods and Services Tax (GST) is an indirect form of tax. This is applicable in a uniform manner for the whole country. It was introduced on 1 July 2017 to replace and combine all major indirect tax payments in India, such as central excise, service tax, and value-added tax

The first time the GST was introduced. The people become puzzled and do not know how to calculate the GST value. Even many people are thinking the GST value is far higher than the regular VAT and tax. But right information and the GST value calculations are the keys to avoiding making mistakes.

So let’s see first what GST late fees are.

What Are GST Late Fees?

What Are GST Late Fees?

GST is a destination-based tax that is levied on the value-added at every stage of sale and consumption of goods and services. The Goods and Service Tax Network (GSTN), a not-for-profit, private limited company owned by India's central and state governments, was created to provide IT infrastructure and services required to implement the Goods and Services Tax.

Since its introduction as the dominant tax regime of India, the features and rules of GST have been amended several times. The frequent amendments have often confused the taxpayers and left them wondering what is GST, leading to delays in return filing. 

However, more importantly, due to the confusion caused by frequent changes in the rules, the number of taxpayers complying with the return filing process has considerably decreased. This is why the GST council decided to strictly enforce the return filing process by adding interest and a late fees penalty on GST dues paid after the deadline or the last date.

How Are The GST Late Fees Calculated?

The deadlines of GST filing are marked by the Income Tax Department. In certain cases, some extension on the last date could be given. However, if someone misses the deadlines (including extensions, if applicable), then it becomes a case of non-compliance, and a penalty is tagged on the returns by the GST act. 

The penalty amount depends on:

  1. The number of days by which the deadline has been missed.
  2. Types of returns being filed:
  3. Non-annual GST returns
  4. annual returns
  5. NIL returns

The late fee is required to be paid through cash, and the ITC(input tax credit) thus generated as a consequence of payment of late fee cannot be used. Additionally, the late fee for CGST and SGST will be paid separately in different types of electronic cash payment ledgers. A GST return cannot be filed in case of delayed payment unless you pay the late fees.

Is Interest Applicable On Late Payment Of GST?

Is Interest Applicable On Late Payment Of GST?

GST is a form of government tax. So like every other government tax, when you are over the government time period to pay the GST, you must pay the GST along with interest on the late payments.

Yes, beyond the due date, interest will be applicable on GST payments. There are two different interest rates for different scenarios. 

These are:

  1. If the GST payment is delayed after the due date: 18% per annum interest is levied. The interest rate is applicable from the day next to the due date.
  2. If the taxpayer has used the input tax credit over what they can or have diminished the excess output tax liability- In this case, an interest of 24 percent per annum is levied.

However, the government frequently provides temporary relief measures on interest payment depending on certain cases to avoid tax evasion and encourage compliance.

If you don’t want to manually calculate the late fees or the interest, you can always use the GST late fees calculator on Khatabook.


Many people think the GST calculation is very tough work. But when you are going to analyze the factors and the different terms of the GST factors, your calculations processes are going to be far more accessible. But the best solution is just to use the fees calculator and determine the exact GST value of the products.

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