GST law has defined descriptions of the offenses and penalties that are levied if your tax payments are overdue. If any offence is committed then a penalty will have to be paid under GST. A late fee would have to be paid incase of a late filing. So per day you would have to pay Rs. 100 under CGST & Rs. 100 for SGST. Total late fee per day will be Rs. 200. Along with the late fee, you would have to pay an interest of 18% per annum. If you haven't filed your returns in previous months, you won’t be able to file them in subsequent months. This will lead to heavy fines and penalties.

For tax payment defaulters with no intention of fraud or tax evasion, a minimum penalty of Rs. 10,000 has to be paid. The maximum penalty to be paid is 10% of the unpaid tax. Tax payment defaulters with the intention of fraud or tax evasion would have to pay a penalty amount of the tax evaded i.e., 100% penalty, subject to a minimum of Rs. 10,000. According to the tax amount involved in the fraud, the person in question would have to serve jail time and also pay the fine.