Work out GST interest on the cash paid late under Rule 88B, or TDS interest for late deduction and payment by month.
Reviewed by CA Apurav GargUpdated Calculated in your browser; copied links include your figures
Includes marketplace TCS you have accepted. Only cash that stayed in the ledger the whole time counts.
Leave blank if none.
Interest runs only on the part used: availed less the lowest balance (Rule 88B(3)).
GST interest and late fee
₹2,979.45
Interest is on the ₹1,00,000.00 paid late in cash, not the full ₹8,00,000.00: Rule 88B keeps ₹10,356.16 of interest off the bill, thanks to the credit and the cash (including marketplace TCS credited) in your ledgers on the due date.
| Part | Amount |
|---|---|
| Paid late in cash (liability − ITC − cash on hand) | ₹1,00,000.00 |
| Interest at 18% a year, section 50(1) | ₹1,479.45 |
| GSTR-3B late fee: ₹50 a day, up to ₹5,000 | ₹1,500.00 |
| Total | ₹2,979.45 |
A GSTR-3B filed late, or TDS deducted or paid late, costs interest and a late fee. On GST, interest is charged only on the part of the liability paid late in cash, so the credit and cash already on hand make a real difference.
Choose GST or TDS, enter the amounts and dates, and see the interest and late fee with each part worked out.
ITC ₹6,50,000 and cash ₹50,000 on hand, so ₹1,00,000.00 is paid late in cash. Interest ₹1,479.45 (on the full liability it would be ₹11,835.62, so Rule 88B saves ₹10,356.16). Late fee ₹1,500.00. Total ₹2,979.45.
Deductible 10 Apr 2026, deducted 25 May 2026: 2 months, ₹200.00. Due by 7 Jun 2026, paid 8 Jul 2026: 3 months from deduction, ₹450.00. Total ₹650.00.
GST: ₹2,50,000 liability, 30 days late, with ₹50,000 of accepted marketplace TCS in the cash ledger: interest ₹2,958.90, and Rule 88B saves ₹739.73. ₹1,00,000 of ITC wrongly availed, but the credit ledger never fell below ₹40,000, so only ₹60,000.00 was used: section 50(3) interest ₹887.67 for 30 days.
TDS: ₹1,00,000 deducted on 25 May 2026 and paid on 8 Jun 2026, one day after the due date of 7 Jun 2026. A part month counts in full, so that is 2 months: ₹3,000.00.
GSTR-9: 40 days late, aggregate turnover in the lowest band and ₹20,00,000 turnover in the State: the cap of ₹800.00 applies, so the late fee is ₹800.00.
Our Tax Audit & Notices work covers replies to GST and TDS demands, including interest and late fee computations.
Only on the part paid late in cash. Under Rule 88B, interest under section 50(1) is on the tax paid by debiting the electronic cash ledger after the due date. Credit already in the credit ledger, and cash that sat in the cash ledger from the due date, do not attract interest.
When ITC is wrongly availed and also utilised. Interest at 18% a year runs from the date of utilisation to the date it is reversed or paid. Credit that was availed but never used does not attract it.
₹50 a day (CGST and SGST together), or ₹20 a day for a nil return, up to a cap that depends on the previous year’s aggregate turnover.
By month, and a part of a month counts as a full month. Late deduction: 1% a month from the date tax was deductible to the date it was deducted. Late payment: 1.5% a month from the date it was deducted to the date it was paid.
By day 7 of the next month, except that TDS deducted in March is due by 30 April.
₹200 a day from the due date until the return is filed, never more than the TDS in the return.
We keep books, file GST and TDS returns and prepare monthly MIS for D2C and marketplace sellers. Share your figures and we will walk you through what we find.
An estimate for general information only, based on the amounts and dates you enter. The GST portal and TRACES compute the interest and fees actually charged; this is not advice on your GST or TDS position.
