All Calculators
CGST Act 2017 · Rule 88BIndirect Tax & GST SuiteNotif. 19/2021 Rationalized

GST Late Fee & Section 50 Interest Engine

Accurate statutory computation of Section 50(1) interest (18% p.a. calculated day-wise strictly on Net Cash Liability under Rule 88B) and rationalized Section 47 late fees tiered by Aggregate Annual Turnover (AATO).

Governing Statutory Authority: Sections 47, 50(1), 50(3) of CGST Act, 2017 & Notification No. 19/2021-Central Tax
Common GST Return Scenarios & Presets
1. Return Type & Turnover CategorySection 47 Bracket
2. Filing Timeline & Default Delay56 Days Delay
3. Tax Liability & Electronic Credit Ledger Offset
₹4,50,000
₹3,00,000
Net Tax Payable in Cash (Electronic Cash Ledger)Rule 88B: Section 50(1) interest is levied strictly on this net balance.
₹1,50,000
CGST Assessment

Total Dues Payable

GSTR-3B
Total Aggregate Statutory Dues
₹1,56,142
Delay Period: 56 Days
Net Cash Tax PayableAfter Input Tax Credit Offset
₹1,50,000
Section 50(1) Interest (18% p.a.)Strictly on Net Cash for 56 days
₹4,142
Section 47 Late Fee₹50/day (Max Cap: ₹2,000)
₹2,000
Late Fee Head Breakdown:CGST Head: ₹1,000 | SGST Head: ₹1,000

Statutory Rule 88B Formula Benchmarking

Interest Formula (Sec 50(1)):

Interest = Net Cash Tax × 18% × (Days Delayed / 365)

As clarified in the proviso to Section 50(1) and Rule 88B, interest cannot be charged on the portion of tax discharged by debiting the Electronic Credit Ledger (ITC).

Chartered Accountant Advisory & GST Compliance Notes

Section 50(1) Proviso (Net Tax)

Interest under Section 50(1) is payable only on the portion of tax paid through the Electronic Cash Ledger after adjusting eligible ITC in Form GSTR-3B filed after the due date.

Section 50(3) Ineligible ITC

Interest @ 18% p.a. under Section 50(3) is levied only when ineligible ITC is both availed and utilized. Mere availment without utilization does not trigger interest liability.

Rationalized Section 47 Caps

Notification No. 19/2021-Central Tax caps total late fees at ₹500 for Nil returns, ₹2,000 for AATO ≤ ₹1.5 Cr, ₹5,000 for AATO ₹1.5–5 Cr, and ₹10,000 for AATO > ₹5 Cr.

Form GSTR-1 Late Fee

Section 47 late fee is also applicable for delayed filing of GSTR-1 outward supply statements, which is auto-populated in the subsequent month's GSTR-3B payment challan.

DRC-01B Intimation on Mismatch

Rule 88C triggers automated Form DRC-01B if output tax in GSTR-1 exceeds GSTR-3B by a specified percentage, requiring immediate reconciliation or cash deposit.

DRC-01C Intimation on ITC Mismatch

Rule 88D triggers automated Form DRC-01C if ITC availed in GSTR-3B exceeds GSTR-2B by the statutory threshold, requiring either reversal with interest or statutory explanation.