A late GST/HST return and an overdue payment can cause different charges. File the return even if you cannot pay the full balance, and contact CRA about payment. A late-filing penalty can apply when the return is late and an amount is owing; arrears interest applies to an overdue balance. CRA: filing penalties, CRA: remitting
How the late-filing penalty is calculated
CRA’s formula is A + (B × C): A is 1% of the amount owing; B is 25% of A; and C is the number of complete months late, up to 12. CRA does not charge this particular late-filing penalty if there is no amount owing or the return is a refund. Other obligations still apply. CRA: GST/HST filing penalties
For example, if the amount owing is $4,000 and the return is two complete months late, A is $40, B is $10, and the penalty is $40 + ($10 × 2) = $60. This example excludes interest and any other penalty. A partial month is not a complete month in this formula.
Interest is separate
CRA charges interest on an overdue balance at the prescribed annual rate, compounded daily. The rate can change each calendar quarter. For October 1 to December 31, 2026, CRA lists 7% per year for overdue GST and HST remittances; use the applicable quarter’s rate for any other period. Paying the balance earlier reduces the time over which arrears interest accrues, but does not itself file the return. CRA: current-quarter rates, CRA: interest on late payments
Other penalties and instalments
Failure to file electronically when required triggers a separate penalty: $100 for the first return and $250 for each subsequent return filed non-electronically. CRA also lists a $250 penalty for failing to comply with a demand to file, and special penalties for certain incorrect electronic reporting. Interest may also arise from late or insufficient required instalments; it is not the same as the late-return penalty. CRA: filing penalties, CRA: instalment interest
What to do after a missed deadline
- Identify the RT account, reporting period and amounts, and prepare the overdue return from your records.
- File using an applicable method; most registrants must file electronically for periods beginning on or after January 1, 2024, subject to CRA’s exceptions.
- Pay what you can and contact CRA if you cannot pay in full or on time.
- Keep filing and payment confirmations, then review any CRA assessment and interest. A taxpayer-relief request may be available in eligible circumstances; relief is not automatic. CRA: taxpayer relief CRA: deadlines and electronic filing, CRA: payment