Compliance
Missing a GST return deadline triggers a daily ₹100 fee per Act, capped at ₹5,000 for periodic returns, and the real cost is usually double because the State law mirrors the central provision.
Check your DPDP readiness — free More on the blogThe first task is to designate a person – typically the finance manager or a senior accountant – who owns the GST filing calendar. This individual must record the statutory due dates for each periodic return and the annual return in a shared spreadsheet or accounting software. The record should include the filing window, the expected preparation time, and a buffer for internal review. By having a single point of accountability, the business reduces the risk of a missed deadline and the consequent late fee. Once the dates are logged, the responsible person circulates a reminder to the team handling sales, purchases and inventory. The reminder should request that all source documents – invoices, debit notes and credit notes – be uploaded to the accounting system by the agreed cut‑off. This ensures that the GST return can be prepared without chasing missing paperwork, which is a common cause of delays.
Two days before the filing deadline the finance team extracts the GST summary from the software, checks it against the physical register and resolves any mismatches. At the same time they run the portal’s fee calculator for a hypothetical late filing. The calculation shows the daily ₹100 charge per Act and the statutory cap of ₹5,000. Because the State law mirrors the central provision, the team notes that the total payable will be roughly double the amount shown on the central side.
If the return cannot be filed on time, the finance manager must document the reason for the delay in the same spreadsheet, noting the date the filing actually occurs. This note becomes the primary evidence if the tax authority queries the fee. The manager also records the exact late‑fee amount paid, the transaction reference from the portal and the date of payment. Keeping these details together simplifies any future audit trail. After payment, the finance team uploads the receipt and the delay note to the central document repository used by the company. The repository should be accessible to senior management and the compliance officer, who may need to produce the files during a tax inspection. Maintaining a clear paper trail prevents disputes over whether the fee was correctly calculated or paid on time.
The fee is ₹100 for each day a return is late under the central GST law, with an identical charge under the State law, effectively doubling the amount. The total cannot exceed ₹5,000 for periodic returns, though notifications may lower the charge for nil or small returns.
You should provide the internal delay note, the portal receipt showing the fee paid, the transaction reference number and the date of filing. Keeping these together in a shared folder satisfies the authority’s request for evidence.
The statutory ceiling is ₹5,000, but the amount actually charged is set by the latest notification, which often lowers the fee for nil returns or smaller taxpayers. Once paid, the fee is final; it cannot be reclaimed later.
Typically the finance manager or senior accountant owns the calendar, prepares the return and records any delay. Senior management should review the documented reason for delay, while the compliance officer ensures the paperwork is stored for audit purposes.
Published 6 October 2026. Founder & CEO at VidhiSar. I have watched four companies pay for the same mistake, and it was never the mistake anyone expected. VidhiSar is software, not a law firm: every answer names the section it relies on so you can check it, and anything turning on your specific facts is worth putting to a professional. More about who builds this
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