Current status of GST late fee waivers, interest amnesty schemes, and compliance relaxations. Updated after every GST Council meeting.
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Last reviewed: April 2026. GST Council meets 3–4 times per year. New waivers or extensions may be announced at any time. Always verify current notifications at cbic.gov.in before making compliance decisions.
Section 128A — Interest & Penalty Amnesty
Active
Period Covered
FY 2017-18, 2018-19, 2019-20
Cutoff / Deadline
As per CBIC notification — check latest update
Benefit
Full waiver of interest and penalty on Section 73 tax demands
Eligibility Condition
Pay full tax dues (without interest/penalty) by the cutoff date specified in CBIC notification
Legal Provision
Section 128A CGST Act (inserted by Finance Act 2024)
💡 Does NOT apply to Section 74 (fraud/suppression) demands. Only Section 73 demands covered.
GSTR-3B Late Fee Waiver — Nil Returns
Partial
Period Covered
Reduced cap — ongoing
Cutoff / Deadline
Permanent — applies to all periods
Benefit
Late fee for nil GSTR-3B capped at ₹500 (₹250 CGST + ₹250 SGST) instead of ₹10,000
Eligibility Condition
For taxpayers with nil tax liability — automatic, no separate application needed
Legal Provision
CBIC Notification 19/2021 and amendments
💡 Regular GSTR-3B with tax liability still attracts ₹50/day capped at ₹10,000.
GSTR-1 Late Fee Reduction (Small Taxpayers)
Active
Period Covered
Ongoing
Cutoff / Deadline
Permanent
Benefit
GSTR-1 late fee waived for months with nil outward supplies. Reduced cap for small taxpayers.
Eligibility Condition
Automatically applied based on return type and taxpayer category
Legal Provision
CBIC Notifications 2021-2022 series
💡 Turnover up to ₹1.5 crore: late fee capped at ₹2,000. Turnover ₹1.5–5 crore: cap ₹5,000. Above ₹5 crore: ₹10,000.
GSTR-4 Late Fee Reduction (Composition)
Active
Period Covered
FY 2019-20 onwards
Cutoff / Deadline
Permanent — ongoing
Benefit
GSTR-4 late fee capped at ₹2,000 (nil return) or ₹2,000 (with liability) instead of ₹10,000
Eligibility Condition
Automatically applied for composition scheme taxpayers
Legal Provision
CBIC Notification 73/2017 and amendments
💡 Composition dealers also benefit from reduced filing burden — annual GSTR-4 instead of monthly returns.
GSTR-9 / GSTR-9C Waiver (Small Taxpayers)
Active
Period Covered
FY 2023-24 onwards
Cutoff / Deadline
Check latest year's notification
Benefit
GSTR-9 filing is optional for taxpayers with aggregate turnover up to ₹2 crore. GSTR-9C optional up to ₹5 crore.
Eligibility Condition
Annual aggregate turnover ≤ ₹2 crore: optional GSTR-9. Between ₹2–5 crore: GSTR-9 mandatory but GSTR-9C optional.
💡 Even if exempt, filing GSTR-9 is recommended for reconciliation and creating an annual audit trail.
Three-Year Filing Bar Introduced
Restriction
Period Covered
Effective July 2025
Cutoff / Deadline
July 2025 onwards
Benefit
N/A — This is a restriction, not a waiver
Eligibility Condition
GSTR-1 and GSTR-3B cannot be filed after 3 years from the original due date
Legal Provision
Finance Act 2024 amendment to CGST Act
💡 Old pending returns for periods more than 3 years ago can no longer be filed. File any pending returns immediately if within the window.
How to Check if a Waiver Applies to You
Step 1: Identify your outstanding demand or unfiled return. Check the tax period, the section under which the demand was raised (Section 73 vs 74), and the amount.
Step 2: Match against the waiver scheme — check if your period falls within the covered years and whether you meet the eligibility conditions (e.g., payment of tax principal by cutoff date).
Step 3: For Section 128A amnesty — pay the tax dues (without interest/penalty) via DRC-03 on the portal before the cutoff, then apply online through the designated route once CBIC activates the portal functionality.
This page is for informational guidance only. Waiver eligibility depends on the exact facts of each case. Consult a qualified CA or GST practitioner before relying on any amnesty scheme.
Demands u/s 73 for FY 2017-18 to 2019-20. Pay tax before 31 Mar 2026.
GSTR-9 Late Fee
Waived Selectively
Reduced late fee for FY 2017-18 to 2022-23 in prior amnesty windows.
GSTR-3B Late Fee
Capped at ₹500
For nil-tax returns; ₹1,000 for returns with tax. Council 53rd.
GSTR-1 Late Fee
Capped at ₹500/₹1,000
Nil return: ₹500. Other: ₹1,000. Per Council recommendation.
DRC-07 Demands
Waiver if paid in full
Section 128A relief on interest/penalty if principal tax paid by cut-off.
GSTR-10 Late Fee
Capped at ₹1,000
Final return late fee capped — one-time amnesty per Council.
Section 128A — Interest & Penalty Waiver Details
Who is eligible?
Taxpayers with demands under Section 73 (non-fraud cases) for FY 2017-18, 2018-19, and 2019-20. The scheme covers cases where the principal tax demand is paid in full by the notified cut-off date. It does not apply to Section 74 (fraud) demands.
Demand must be under Section 73 — not Section 74
Must cover FY 2017-18, 2018-19, or 2019-20
Full principal tax must be paid — not partial
Application filed within notified window
What is waived?
Interest u/s 50: Full waiver on interest payable on the demand amount
Penalty u/s 73(9): Full waiver of the 10% / ₹10,000 penalty
Late fees: Any late fees associated with the demand period
Not waived: The principal tax itself must be paid in full
Pending appeals: Taxpayers must withdraw pending appeals to avail the scheme
How to Apply for Section 128A Waiver
Step 1
Pay full tax demand
Use DRC-03 challan to pay the full principal tax (excluding interest and penalty) for the demand period.
Step 2
File waiver application
Navigate to GST portal → Services → User Services → Application for waiver under Section 128A. Select the relevant DRC-07 or assessment order.
Step 3
Attach payment proof
Upload the DRC-03 challan number confirming full tax payment.
Step 4
Withdraw pending appeals
If any appeal is pending for the same demand, file a withdrawal before submitting the Section 128A application.
Step 5
Await officer approval
The officer verifies the payment and issues an order closing the demand. Interest and penalty are dropped.
Late Fee Caps by Return Type
Return
Nil Return
Other Returns
Standard Rate
GSTR-1
₹500/period
₹1,000/period
₹50/day (₹25 CGST + ₹25 SGST)
GSTR-3B
₹500/period
₹1,000/period
₹50/day + interest at 18% p.a.
GSTR-4
₹500/year
₹2,000/year
₹50/day (₹25 CGST + ₹25 SGST)
GSTR-9
₹500/period
₹500/period
₹200/day (max 0.25% of turnover)
GSTR-10
₹1,000 (one-time)
₹1,000 (one-time)
₹200/day
Frequently Asked Questions
The GST Council recommends waivers, and they are given effect through notifications issued by the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance. These notifications are published in the Official Gazette and on cbic.gov.in.
No. GST waivers and amnesty schemes have strict cutoff dates. Missing the deadline means the full interest and penalty becomes payable. There is typically no extension once the scheme closes, though in rare cases the GST Council may extend deadlines if there is widespread demand.
Not necessarily. Late fee waivers (under Section 47) and interest waivers (under Section 50) are separate. A waiver may cover only late fee, or only interest, or both. Read the specific notification carefully. Section 128A, for example, covers interest on Section 73 demands but is separate from regular late fee provisions.
