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GST Penalty Calculator

Calculate penalties for GST offences under Section 122 & 125 of the CGST Act, 2017

⚠️ Calculate GST Penalty

GST Penalty Reference Table

OffenceSectionPenaltySeverity
Late filing of returns47 & 50₹50/day (₹20 for NIL), max ₹10,000 + 18% interestLow
Short payment – genuine mistake7310% of tax due (min ₹10,000)Medium
Tax evasion / fraud / suppression74100% of tax due (min ₹10,000)High
Fake invoice / wrong ITC claim122100% of ITC availed or tax evaded (min ₹10,000)High
Non-registration despite liability12210% of tax due (min ₹10,000)Medium
Wrong refund claim122Amount of refund wrongly claimed (min ₹10,000)Medium
Obstructing GST officer125₹25,000 (fixed)High

Difference Between Late Fee, Interest & Penalty

Late Fee(Section 47): Charged for late filing of returns. Fixed per-day charge capped at ₹10,000. Applicable even if no tax is due (though lower for NIL returns).

Interest(Section 50): Charged at 18% per annum on unpaid tax from the due date till actual payment. For excess ITC claims, the rate is 24%.

Penalty(Sections 122–125): Charged for deliberate offences like tax evasion, fake invoices, fraudulent ITC, obstruction, etc. More severe and often equals 100% of tax evaded.

⚖️ Voluntary Disclosure:Penalty can be waived or reduced if the taxpayer voluntarily discloses the shortfall and pays before a show-cause notice is issued. Always consult a GST professional before making disclosures.

Frequently Asked Questions

What is the difference between Section 73 and Section 74?+
Section 73 covers cases of genuine mistakes (no fraud or willful neglect) — penalty is 10% of tax. Section 74 applies to deliberate fraud, suppression, or misrepresentation — penalty is 100% of tax.
Can penalty be waived if I pay before receiving notice?+
Yes. Under Section 73, if the taxpayer pays the tax, interest and a reduced penalty (15% of tax) before a show cause notice is served, higher penalties are waived. Under Section 74 (fraud), reduced penalties apply if paid before adjudication.
Is penalty applicable on late payment of reverse charge tax?+
Yes. Late payment of reverse charge mechanism (RCM) tax attracts 18% interest under Section 50. If non-payment is detected during audit, penalties under Section 73 or 74 may also apply depending on intent.
Can GST officers arrest for non-payment of tax?+
Arrest provisions exist under Section 69 of the CGST Act for serious offences exceeding ₹5 crores — such as tax evasion, fake invoicing, or fraudulent refund claims. Minor defaults like late filing do not attract arrest.

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