Section 47 – Levy of Late Fee
Section 47 of CGST Act, 2017 – Levy of Late Fee
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Scope and Purpose of Section 47
Section 47 provides for the levy of late fee for failure to furnish GST returns within the prescribed time.
Late fee is a statutory consequence, distinct from interest or penalty, and is levied automatically by the GST system.
2. Statutory Provision – Section 47
Section 47(1):
Any registered person who fails to furnish a return under
section 39, section 44 or section 45
by the due date
shall be liable to pay a late fee
of one hundred rupees for every day
during which such failure continues,
subject to a maximum of five thousand rupees.
Section 47(2):
Any registered person who fails to furnish the annual return
under section 44 by the due date
shall be liable to pay a late fee
of one hundred rupees for every day
during which such failure continues,
subject to a maximum amount
of twenty-five thousand rupees.
3. Returns Covered Under Section 47
Late fee is leviable for delay in filing:
- Return under Section 39 (GSTR-3B)
- Annual return under Section 44 (GSTR-9)
- Final return under Section 45 (GSTR-10)
4. Nature of Late Fee
Late fee under Section 47:
- Is mandatory and statutory
- Is auto-calculated by the GST portal
- Cannot be waived except by Government notification
Late fee is payable:
- Separately under CGST and SGST/UTGST
5. Maximum Cap and Government Relaxations
Though the Act prescribes maximum limits, the Government has repeatedly:
- Reduced late fee amounts
- Imposed lower caps for NIL returns
- Granted waivers for specific periods
Such reliefs are notification-based and vary from time to time.
6. Late Fee vs Interest
Late fee and interest are independent liabilities.
- Late fee – for delay in filing return
- Interest – for delay in payment of tax (Section 50)
Both can apply simultaneously.
7. Section 47 Read with CGST Rules
Section 47 operates with:
Late fee is levied even if notice under Section 46 is issued.
8. Practical Examples
Example:
- Delay in filing GSTR-3B by 10 days
- Late fee = ₹100 × 10 = ₹1,000 (CGST) + ₹1,000 (SGST)
Total late fee = ₹2,000 (subject to applicable caps and relaxations).
9. Common Practical Issues
- Assuming NIL returns have no late fee
- Ignoring auto-populated late fee
- Waiting for waiver notifications
- Confusing late fee with penalty
10. Related Provisions
- Section 46 – Notice to return defaulters
- Section 50 – Interest on delayed payment
- Section 62 – Best judgment assessment
11. Professional Tip
Late fee is small per day but dangerous in accumulation. Regular nil filing discipline is the cheapest compliance strategy under GST.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Government may reduce or waive late fee by notification for specific periods.
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