Penalty applicable gstr1 from 01-10-22

If you have not filed GSTR-1 and GSTR-3B, you will be liable for a late fee calculated per day of delay. These fees must be paid in cash via the electronic cash ledger on the GST portal before you can submit your returns.

Late Fee Structure

The late fee is split equally between Central GST (CGST) and State/Union Territory GST (SGST).

Maximum Late Fee Caps

The total late fee you pay is capped based on your annual aggregate turnover from the previous financial year:

• Nil Return: Maximum of ₹500 (₹250 CGST + ₹250 SGST).

• Turnover up to ₹1.5 crore: Maximum of ₹2,000 (₹1,000 CGST + ₹1,000 SGST).

• Turnover between ₹1.5 crore and ₹5 crore: Maximum of ₹5,000 (₹2,500 CGST + ₹2,500 SGST).

• Turnover above ₹5 crore: Maximum of ₹10,000 (₹5,000 CGST + ₹5,000 SGST).

Important Considerations

• Interest on Tax: If you have an outstanding tax liability, you will also be charged interest at 18% per annum for the period of delay, calculated from the day after the due date until the actual date of payment.

• No ITC for Late Fees: Late fees cannot be paid using your Input Tax Credit (ITC) balance; they must be paid in cash.

• Blocking of Services: Continued non-filing can result in your GSTR-1 being blocked, inability to generate e-Way bills, and potential suspension or cancellation of your GST registration.

• Statute of Limitations: As of 2026, you generally cannot file returns that are more than three years past their original due date.

Summary: For late filing, you will pay a daily fee (₹50 per day for normal returns, ₹20 for nil returns) subject to a maximum cap based on your turnover. Additionally, interest of 18% per annum applies to any unpaid tax liability. Ensure you file these returns promptly to avoid further compliance issues.