Late GST compliance remains an expensive affair for Indian businesses. During the last four financial years, the government has collected ₹7,664.94 crore in late fees from returns filed after their due dates.
The number reinforces a simple reality: non-compliance is costly, and in most cases, completely avoidable.
As per GST provisions, a late fee is levied for every day a return remains unfiled beyond the prescribed deadline. The amount depends on the type of return and whether there is tax liability.
For GSTR-1 and GSTR-3B, the late fee for regular (taxable) returns is ₹50 per day (₹25 CGST + ₹25 SGST), subject to a ceiling of ₹10,000. In case of nil returns, the fee reduces to ₹20 per day, with a maximum of ₹500.
For the annual return GSTR-9, the late fee is ₹200 per day, capped at 0.25% of the turnover in the relevant state or union territory.
Year-wise Late Fee Collections
- 2021-22: ₹1,960.38 crore
- 2022-23: ₹1,968.10 crore
- 2023-24: ₹1,987.72 crore
- 2024-25: ₹1,748.74 crore
A major share of these collections arises from GSTR-3B, the monthly summary return businesses must file to declare liabilities and claim input tax credit.
Latest Monthly Position
In January 2026, gross GST collections touched ₹1,93,384 crore, a 6.2% year-on-year increase. After refunds, net revenue stood at ₹1,70,719 crore, growing 7.6% compared with the previous year. Refund outgo during the month was about ₹22,665 crore, slightly lower than last year, which supported stronger net realisation.
FY 2025-26 So Far
For the period April to January, cumulative gross GST revenue has crossed ₹18.43 lakh crore, marking an 8.3% rise over the corresponding period of the previous year. Net collections during the same period are around ₹15.96 lakh crore, up 6.8%.
Recent Monthly Trend
- October 2025: about ₹1.96 lakh crore
- November 2025: roughly ₹1.70 lakh crore, with slower growth after rate rationalisation
- December 2025: nearly ₹1.75 lakh crore, up around 6% year on year
The Cost Goes Beyond the Penalty
What many organisations underestimate is that the real damage of late filing often exceeds the fee itself. Delays can result in blocked e-way bill generation, interruption in input tax credit claims, pressure from customers and vendors, and greater scrutiny from tax authorities.
Over time, repeated non-compliance can affect vendor confidence, compliance ratings, and long-term business relationships.
Prevention is Process-Driven
Avoiding late fees usually does not require complex solutions. Strong internal discipline can make the difference between routine reconciliation, faster closure of books, internal deadlines, automated reminders, and periodic professional review. Even when there are no transactions, filing a nil return on time prevents unnecessary expense.
The thousands of crores collected in late fees highlight how widespread delays still are. Yet, with planning and the right systems, most of these penalties can be eliminated. Treating GST compliance as a routine business function rather than a last-minute activity helps safeguard profitability, credibility, and reputation across the supply chain.
