GST Return Filing Fees: Government vs CA Charges

Searches for GST return filing fees usually assume the government charges for each return. It does not. Filing a return on the GST portal is free, whatever the return and whatever the size of the business. What businesses pay for is someone to prepare and reconcile the return, software to manage invoices, and, when a deadline is missed, a late fee. This guide separates those costs, sets out what a professional's monthly fee should cover, and compares doing it yourself with hiring a CA or buying software.

The government fee is nil

Returns are filed on gst.gov.in. The CGST Act and Rules prescribe no fee for filing any of them: not GSTR-1, not GSTR-3B, not the quarterly CMP-08 for composition dealers, and not the annual GSTR-9. There is no payment step for the act of filing. The full list of returns and who files which is in our guide to types of GST returns.

What the portal does collect is money you owe anyway: the tax shown in GSTR-3B, interest if that tax is paid late, and a late fee if the return is filed after its due date. None of these is a charge for the service of filing.

What businesses actually pay for

A small business with a handful of sales invoices and nothing to reconcile can file every return itself and pay nothing. If a period has no activity at all, our nil return guide covers the quick routes, including filing by SMS.

Professional fees: what drives the price

There is no official scale for GST return filing fees by a CA, and quotes vary widely between cities and firms. Rather than comparing headline numbers, look at the factors that decide how much work the return actually takes:

• Invoice volume. Ten sales invoices a month and a thousand are different jobs, even though both end in the same GSTR-1.
• Purchase volume. Every purchase invoice has to be matched against GSTR-2B before credit is claimed. This, not sales, is usually the larger task.
• Number of GSTINs. Each state registration files its own returns, so a business registered in four states files four sets.
• Filing frequency. Monthly filers file twelve GSTR-3Bs a year; businesses under the QRMP scheme file quarterly returns with monthly payments.
• E-invoicing and e-way bills. If these are in scope, someone has to check that they agree with what is reported in GSTR-1.
• The annual return. GSTR-9 and, where applicable, GSTR-9C reconcile the full year and are often quoted separately.
• Notices. Replying to a mismatch notice or scrutiny is real work and is rarely included in a basic monthly fee.

What a monthly fee should include

Before agreeing a fee, ask the professional to confirm which of these are covered. Two quotes at similar prices can cover very different amounts of work.

The filing steps themselves are set out in our GSTR-1 guide and GSTR-3B guide. The reconciliation step, which is where most of a professional's time should go, is covered in GSTR-2B and purchase register reconciliation.

DIY, a CA or software

Most businesses end up with one of three arrangements, or a mix of them.

• Do it yourself. Costs nothing beyond your time. It suits businesses with few invoices, a single GSTIN and simple purchases. The risk is skipping reconciliation and claiming credit that later has to be reversed with interest.
• A CA or tax practitioner. Costs a recurring fee and brings judgement on credit, classification and notices. It suits most businesses once purchases grow beyond what can be checked by eye.
• Software. Accounting or GSP software costs a subscription and cuts the manual work of preparing returns and matching invoices. It does not replace judgement, so larger businesses usually pair software with a professional or an in-house accountant.

Whichever route you choose, check supplier GSTINs before booking their invoices. Credit on an invoice from a cancelled or wrong GSTIN is lost regardless of who files the return.

Late fees: the cost you can avoid

The only amount the government charges in connection with filing is the late fee, and it is entirely avoidable. For a nil return, the late fee is ₹20 per day (₹10 CGST and ₹10 SGST), capped at ₹500 per return. For returns with a tax liability, the daily fee is higher and the maximum is capped in slabs graded by aggregate turnover. The current amounts, and how interest is worked out on tax paid late, are in our GST late fee and interest guide.

Late fees accrue per return and per GSTIN, so a business that misses both GSTR-1 and GSTR-3B for several months in several states can build up a larger bill than a year of professional fees. The dates to plan around are in the GST return due dates calendar.

For the parallel question on registration, see GST registration fees, which is also free.

Frequently asked questions