What is GSTR‑3B?
GSTR‑3B is a monthly self‑declaration return summarising outward supplies, input tax credit (ITC) and the net tax payable. It must be filed even for NIL activity for a tax period.
Late Fee for Delay in Filing
| Scenario | Per‑day Late Fee | Maximum Cap (varies by period/turnover) |
|---|---|---|
| Return with liability | ₹50/day (₹25 CGST + ₹25 SGST) | Often shown up to ₹10,000 per return; some periods had ₹5,000 cap or turnover‑based caps (₹2,000/₹5,000/₹10,000). Check portal while filing. |
| NIL return | ₹20/day (₹10 CGST + ₹10 SGST) | Commonly capped at ₹500–₹1,000 in relief periods; verify current cap on the portal. |
Why this varies: CBIC notifications and periodic amnesty schemes have altered caps for specific tax periods and classes of taxpayers. Always rely on the amount computed in the portal for the selected period.
Interest on Delayed Tax Payment
- 18% per annum on the unpaid tax from due date till the date you actually pay (Section 50(1), CGST Act).
- For wrongly availed & utilised ITC, a higher rate (up to 24% p.a.) may apply under Section 50(3).
Note: Courts/notifications clarified that interest is payable on the portion paid in cash for the delayed period. If unsure, seek professional advice.
Quick Example
Tax payable (cash): ₹50,000; Delay: 30 days; Return is not NIL.
- Interest = 50,000 × 18% × (30/365) ≈ ₹739
- Late fee = ₹50 × 30 = ₹1,500 (subject to cap)
Total ≈ ₹2,239 (before any cap adjustments shown by the portal).
How to Avoid GSTR‑3B Penalties
- Use calendar reminders and file before the due date.
- If there’s no activity, file a NIL return to minimise late fee.
- Pay any cash liability promptly to reduce interest days.
- Review auto‑filled data to avoid wrong ITC and future notices.
FAQs
Is the late‑fee cap ₹5,000 or ₹10,000?
Both figures have applied in different windows. Caps were rationalised by notifications and further relaxed under amnesty schemes for specific periods. The GST portal will display the exact payable late fee for your tax period and turnover band.
What if my return is NIL?
Per‑day fee is ₹20. During relief windows, the cap for NIL returns has been lower (e.g., ₹500). Always check the portal’s computation.
What interest rate applies if I wrongly avail & utilise ITC?
Up to 24% p.a. under Section 50(3), separate from the 18% for delayed tax payment.
Where can I confirm the latest official rules?
See Section 50 on the CBIC Tax Information Portal, the GST portal’s GSTR‑3B guide, and current CBIC notifications. Links are listed above.