What is the interest rate on late GST payment?

18% a year under section 50(1) of the CGST Act, counted for each day from the day after the due date until the tax is paid.

Is interest charged on tax paid using input tax credit?

No. When a return is filed late, interest is charged only on the part of the tax paid in cash from the electronic cash ledger.

I put the cash in my ledger before the due date but filed late. Do I pay interest?

No, from 10 July 2024. If the cash was in your electronic cash ledger on or before the due date and stayed there until it was used when you filed, it is left out of the interest calculation (rule 88B(1), as amended by Notification 12/2024-Central Tax).

What about input tax credit that was wrongly claimed?

Interest on input tax credit wrongly availed and utilised is charged under section 50(3) at 18% a year. This calculator does not cover that case.

How is GST interest paid?

Usually in GSTR-3B for the period, or through Form DRC-03. Pay it under the same head (CGST, SGST/UTGST or IGST) as the tax paid late.

GST Interest Calculator: Late Tax Payment (18%)

An estimate based on the standard rules. Updated 21 October 2026.

How GST interest works

Rate: 18% a year (section 50(1), CGST Act).
Period: from the day after the due date until the day the tax is paid. For a late return, that is the day you file it.
Amount: only the tax paid in cash. Tax paid using input tax credit is left out.
Cash already in your ledger: from 10 July 2024, cash credited to your electronic cash ledger on or before the due date, and kept there until you file, is also left out (rule 88B(1)).

Formula: tax paid late in cash × 18% × days late ÷ 365.

Worked examples

₹1,00,000 paid 30 days late: ₹1,00,000 × 18% × 30 ÷ 365 = ₹1,479.
₹50,000 paid a year late: ₹50,000 × 18% × 365 ÷ 365 = ₹9,000.
Cash deposited on the 18th, return filed on the 30th (due on the 20th): the cash was in the ledger by the due date, so no interest on it.

File on time, every month

Interest and late fees are avoidable. Our GST return filing service keeps you on schedule, from ₹299 a month. Filed late already? Our GST late fee calculator shows the late fee too.

Sources: Section 50, CGST Act 2017; rule 88B, CGST Rules 2017; Notification 12/2024-Central Tax. Not covered: interest on input tax credit wrongly availed and utilised (section 50(3)), and interest after notices under sections 73, 74 or 74A. General information, not tax advice.

GST interest calculator Paid GST late? Know the interest.

How GST interest works

Worked examples

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