Missing your GST payment date results in penalties, interest charges (often 18% annually in India), and late fees (like ₹50/day in India, potentially more elsewhere), which increase your liability; it also disrupts Input Tax Credit (ITC), affects cash flow, and can lead to severe legal actions like registration cancellation or court summons for repeated failure, so it's crucial to pay and file on time.
Interest on Late Payment of GST:
If the taxpayer is unable to pay GST on time due to some reason, an interest is charged on the GST payment. An interest on late payment of GST is of 18% per annum and will be charged for the days after the due date.
The penalty for late GST/HST filing is 1% of any amount you owe, plus an extra 0.25% for each full month your payment is overdue, up to 12 months. If the CRA issues a formal demand to file and you ignore it, they add another $250 penalty even if you don't owe any tax.
Grace periods typically range from 15 to 30 days. While technically a customer could wait until the exemption date to pay, insurers may still treat the premium as GST-inclusive based on the due date, not the payment date. ...
Penalties for a late GST return
GST returns are due every two months or six months, depending on the option you chose when you registered. You'll be charged a penalty for late filing – $50 if you're on the payments basis; $250 if you're on the hybrid or invoice basis.
If you don't pay on time, we will automatically add a general interest charge (GIC) to what you owe. Your debt will grow each day your debt remains unpaid. Interest calculates on a daily compounding basis on the amount overdue and is added to your account periodically.
For GST, the CRA filing and payment deadline is 3 months after your fiscal year end. For GST filed and paid annually, the CRA payment deadline is April 30 and the filing deadline is June 15. For GST filed and paid monthly and quarterly, the CRA filing and payment deadline is one month after the reporting period.
Interest Charged On Late GST Filings
A late fee of Rs 50 each day (Rs 25 charged for CGST and Rs 25 charged for SGST) for any tax liability and Rs 20 each day (Rs 10 charged for CGST and Rs 10 charged for SGST) in case of zero tax liability is subjected to a cap of Rs 5,000.
1. Login into GST portal: Navigate to > Services > User Services > My Applications. 2. On Navigating to 'My Applications' page, the taxpayer has to select 'Apply for Waiver Scheme under Section 128A' option under 'Application type' dropdown.
The GST/HST credit payment period begins in July and ends in June of the following year: January and April payments. Based on your adjusted family net income from your 2024 tax return. July and October payments.
Monthly GST Returns Due Dates
The GST 1 due date is the 11th of the following month. GSTR-3B is a summary return that contains details of sales, purchases, tax liability, and ITC claims. GST 3B due date is the 20th of the following month.
As per Section 139 of the Income Tax Act 1961, all taxpayers must file an income tax return. However, if you miss the deadline of July 31, the government allows you to use a belated ITR form to submit your tax return. You can file a belated ITR up to three months before the end of the assessment year.
Requesting for extensions
GST-registered businesses must maintain proper transaction tracking systems and ensure adequate resources to file their GST returns on time. We may grant extensions to filing due date in these circumstances: Newly registered businesses. Cases that meet our acceptable reasons (listed below)
Notification No. 08/2025 waives the late fee under section 47 of the Central Goods and Services Tax (CGST) Act for the annual return (FORM GSTR-9) for the financial years 2017-18 to 2022-23.
Non/Late Payment
A 5% penalty will be levied on the amount of tax unpaid by the due date and an additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (capped at a maximum of 50% of the outstanding tax) may also be imposed.
If a company's fiscal year-end is December 31 and they did have income for tax purposes that year, their payment deadline is April 30 and their filing deadline would be June 15. If a company's fiscal year-end is August 31, their payment and filing deadline would be November 30, whether or not they had taxable income.
GST Notification 17/2025-Central Tax dt. 18-October-2025
Registered taxpayers can now file their GSTR-3B for the month of September 2025 or the quarter of July–September 2025 by October 25, 2025, instead of the earlier due date.
Using the wrong tax codes or accounting method
Many GST mistakes are the result of using incorrect tax codes or the wrong accounting method: Tax codes: If a GST-free sale is coded as taxable in your accounting system, you'll pay GST unnecessarily. If a taxable sale is coded GST-free, you'll underpay.
Where the payment has not been made, the ATO will contact you. Interest, currently 8.96% p.a. calculated on a daily rate, will be added to the overdue amount.
Grace Period & Late Fees ⚠️
Most loans include a short grace period—typically 10–15 days after the due date—before a payment is officially considered late. If you miss this window, you'll likely be hit with a late fee, usually in the $25–$50 range or outlined in your loan agreement.
The failure-to-pay penalty is one-half of one percent for each month, or part of a month, up to a maximum of 25%, of the amount of tax that remains unpaid from the due date of the return until the tax is paid in full.
28 February
Annual GST return or Annual GST information report: final date for lodgment and payment (if required) if you do not have an income tax return lodgment obligation.
Payment amounts are recalculated every July
For example, the information from your 2024 tax return determines the GST/HST credit amount you get for the payment period from July 2025 to June 2026. You could get up to: $533 if you are a single individual. $698 if you are married or have a common-law partner.
Where the late payment penalty is consideration for a financial supply (for example, a supply of an interest in a credit arrangement), there is no need for the supplier to account for GST for that supply. A charge for late payment penalty that is consideration for a financial supply is not an adjustment event.