The GST late fee for a Nil GSTR-3B or Nil GSTR-1 return is ₹20 per day (₹10 CGST + ₹10 SGST), subject to a maximum cap of ₹500 per return under Notification No. 07/2023-Central Tax. Filing even a single day after the statutory due date triggers the daily fee automatically on the GST portal, regardless of whether any tax was payable for the tax period.
Understanding the Statutory Basis: Section 47 of the CGST Act
Under Section 47(1) of the Central Goods and Services Tax (CGST) Act 2017, any registered person who fails to furnish the statement of outward supplies (GSTR-1) or the summary return (GSTR-3B) by the due date is liable to pay a late fee. The unamended statutory text prescribes a default late fee of ₹100 per day under CGST and ₹100 per day under SGST (totaling ₹200 per day), up to a statutory maximum ceiling of ₹5,000 under each Act (totaling ₹10,000).
Recognising that small businesses and dormant registered taxpayers were severely burdened by high daily fees during period of no business activity, the Central Board of Indirect Taxes and Customs (CBIC) exercised its powers under Section 128 of the CGST Act to reduce and cap late fees progressively through relief notifications, culminating in Notification No. 19/2021-Central Tax and Notification No. 07/2023-Central Tax.
What Qualifies Strictly as a 'Nil' GST Return?
A taxpayer cannot simply choose to file a Nil return to avoid tax liability or higher late fees. Under GST rules, a GSTR-3B or GSTR-1 return qualifies strictly as a Nil Return only when ALL of the following statutory conditions are met during the entire tax period (month or quarter):
- Zero Outward Taxable Supplies: No intra-state, inter-state, export, or zero-rated sales of goods or services were executed.
- Zero Exempt or Non-GST Supplies: No exempt, nil-rated, or non-GST transactions (such as petrol or alcohol) occurred.
- Zero Inward Supplies Subject to RCM: No purchases attracting Reverse Charge Mechanism (RCM) tax liability under Section 9(3) or Section 9(4) were received (e.g., GTA freight services, legal fees from an advocate, or sponsorship services).
- Zero Input Tax Credit (ITC) Claimed: No ITC was availed, claimed, or carried forward in Table 4 of GSTR-3B.
- Zero Past Tax Liability or Adjustments: No past tax liabilities, interest, or late fee arrears are pending settlement in the return.
If a registered taxpayer has executed even a single transaction during the month—such as paying ₹500 to a lawyer attracting RCM, or making an exempt sale of ₹100—the return is legally classified as a regular return, disqualifying the taxpayer from the ₹20/day Nil late fee rate.
Statutory Rate Breakdown: Nil vs Regular Returns
The following structured table outlines the applicable daily late fee rates and maximum statutory capping limits for various categories of returns under Notification No. 07/2023-Central Tax:
| Return Category | Annual Turnover (AATO) | CGST Daily Fee | SGST Daily Fee | Total Daily Fee | Maximum Statutory Cap |
|---|---|---|---|---|---|
| Nil Return (GSTR-3B / GSTR-1) | Any Turnover Slab | ₹10 | ₹10 | ₹20 / day | ₹500 (₹250 CGST + ₹250 SGST) |
| Regular Return (Small Taxpayer) | Up to ₹1.5 Crore | ₹25 | ₹25 | ₹50 / day | ₹2,000 (₹1,000 CGST + ₹1,000 SGST) |
| Regular Return (Medium Taxpayer) | ₹1.5 Cr to ₹5 Crore | ₹25 | ₹25 | ₹50 / day | ₹5,000 (₹2,500 CGST + ₹2,500 SGST) |
| Regular Return (Large Taxpayer) | Above ₹5 Crore | ₹25 | ₹25 | ₹50 / day | ₹10,000 (₹5,000 CGST + ₹5,000 SGST) |
Worked Numeric Example 1: Nil Return Daily Accumulation & Cap
Consider M/s Apex Legal Consultants, a registered partnership firm with zero turnover during May 2026. The statutory due date for filing May 2026 Nil GSTR-3B was 20 June 2026. The firm actually filed the return on 15 August 2026 (a total delay of 56 days).
- Step 1: Calculate Uncapped Daily Accumulation:
Daily fee = ₹20 (₹10 CGST + ₹10 SGST)
56 days delay × ₹20/day = ₹1,120. - Step 2: Apply Statutory Notification Cap:
Under Notification 07/2023-CT, the maximum late fee for a Nil GSTR-3B return is capped at ₹500 (₹250 CGST + ₹250 SGST). - Step 3: Determine Final Payable Late Fee:
Because ₹1,120 exceeds the ₹500 cap, the GST Portal automatically restricts the payable fee to exactly ₹500.
Worked Numeric Example 2: Comparison Over Extended Delay Periods
To understand how the statutory cap protects taxpayers during extended non-filing periods, consider a taxpayer who delays filing a Nil GSTR-3B return for 180 days versus a regular taxpayer with turnover of ₹1 Crore:
| Delay Period | Nil Return Accumulation | Nil Return Payable Fee | Regular Return Accumulation | Regular Return Payable Fee |
|---|---|---|---|---|
| 10 Days | 10 × ₹20 = ₹200 | ₹200 | 10 × ₹50 = ₹500 | ₹500 |
| 25 Days | 25 × ₹20 = ₹500 | ₹500 (Cap Reached) | 25 × ₹50 = ₹1,250 | ₹1,250 |
| 60 Days | 60 × ₹20 = ₹1,200 | ₹500 (Capped) | 60 × ₹50 = ₹3,000 | ₹2,000 (Cap Reached) |
| 180 Days | 180 × ₹20 = ₹3,600 | ₹500 (Capped) | 180 × ₹50 = ₹9,000 | ₹2,000 (Capped) |
Filing Nil GSTR-3B via SMS: Quick SOP
To eliminate compliance friction, the GST portal allows registered taxpayers to file Nil GSTR-3B returns instantly via SMS from their registered mobile number without logging into the GST portal:
- Compose SMS: Type
NIL 3B <GSTIN> <TaxPeriod (MMYYYY)>(Example:NIL 3B 07AAAAA0000A1Z5 052026). - Send to 14409: Send the SMS to the official GST toll-free short code 14409.
- Receive Verification Code: You will receive a 6-digit verification OTP via SMS valid for 30 minutes.
- Confirm Filing: Type
CNF 3B <OTP>and send it back to 14409. - Acknowledgement: Upon successful validation, an Application Reference Number (ARN) is generated and sent via SMS.
Important Caveat: SMS filing is rejected by the portal if the taxpayer has pending late fees from previous tax periods or if the return does not fulfill all Nil conditions.
Impact of Sequential Filing Rules (Section 37(4) & 39(10))
Under Section 37(4) and Section 39(10) introduced into the CGST Act, sequential filing is strictly enforced. A taxpayer cannot file GSTR-3B for a month unless GSTR-1 for that month has been filed first. Furthermore, a taxpayer cannot file returns for Month B if returns for Month A remain pending. Delaying a Nil GSTR-1 blocks subsequent GSTR-3B filings, causing late fees to cascade across multiple consecutive tax periods.
Mechanism of Late Fee Accounting on the GST Portal
Unlike tax liabilities or interest under Section 50, late fees accrued for delaying Return 'Month A' are NOT paid when filing Return Month A. Instead, the GST portal automatically calculates the late fee upon submission of Return Month A and populates the charge into Table 6.1 of Return 'Month B' (the subsequent month's GSTR-3B). The taxpayer must debit their Electronic Cash Ledger to settle the auto-populated late fee before Return Month B can be submitted.
Practical Checklist for Chartered Accountants and Tax Practitioners
- Verify Purchase Register in GSTR-2B: Always download GSTR-2B before claiming a return is Nil. If GSTR-2B shows inward supplies under RCM, do not file a Nil return.
- Check Bank Account Interest: Savings bank interest or fixed deposit interest received by a business entity is technically an exempt financial service. Ensure correct disclosure in Table 5 of GSTR-3B.
- Track Cascade Risk: Ensure dormant client registrations are either filed on time via SMS or formally surrendered under Section 29 to prevent unnecessary accumulation of capped late fees.
Interactive Tool for Computation
To compute exact statutory late fees alongside Section 50 interest for any delay period and turnover slab, use our GST Interest & Late Fee Calculator. Also explore related statutory guides on GST Interest Gross vs Net Cash Liability and GST Late Fee Waiver Amnesty Rules.
Avoid GSTR-1 filing errors and Table 12 discrepancies by following our guide on Fixing GST HSN Mismatches & Penalties.