Amnesty Scheme: GSTR-9

What is Form GSTR-9?

Form GSTR-9 is Annual return that is required to be filed by Regular taxpayers [Including SEZ unit/SEZ developer for each financial year.

The purpose of this return is to provide details of all purchases, sales, Input tax credit, payments, demands, refunds made during the complete financial year.

Due date of filing of GSTR-9?

Due date of filing of GSTR-9 for any financial year is 31st December of the next FY.

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For FY 2022-23 the due date of filing of GSTR-9 shall be 31st December 2023.

Applicability of late fee in GSTR-9?

For the FYs 2017-18 till 2021-22, the late fee is levied at Rs 100/day each for CGST and SGST/UTGST [Total Rs 200/day] for delay in filing of GSTR-9 beyond the due date. The maximum late fee is 0.25% of the turnover of the state/UT in which the taxpayer is registered. [Total 0.50% of turnover].

Further, the filing of GSTR-9 is optional for taxpayers whose Annual aggregate turnover [PAN based turnover] is less than rupees 2 Crores for the given financial year. So, no late fees are levied, even if Form GSTR-9 is filed beyond the due date.

What is Amnesty Scheme in GSTR-9?

Amnesty scheme is basically a scheme by which the late is reduced for a specified period of time.

Notification No. 07/2023 - Central tax dated 31st March 2023 has been issued specifying that the maximum late fee which would be levied for GSTR-9 will be Rs 10,000 each under CGST and SGST/UTGST [Total Rs. 20,000].

The reduced late fee shall be applicable if the GSTR-9 for the FYs 2017-18 till FYs 2021-22 which has not been filed by the due date, but the same is filed between 1st April 2023 till 30th June 2023.

There is no change in per day rate of late fee, and it will still be levied at Rs 200 per day.

Which taxpayer seems to benefit from this?

It is a good chance for taxpayers to file their GSTR-9, who have missed it earlier with paying very limited late fees.

So, any taxpayer who is filing Form GSTR-9, for more than 100 days beyond the due date, stands to benefit from this scheme.

This scheme will have no advantage for taxpayers whose turnover for particular GSTIN is less rupees 40 lacs and are filing return more than 100 days beyond the due date. [PAN based turnover is more than 2 crores]

Has any amnesty scheme issued for GSTR-9, previously?

No, it is the first time that the amnesty scheme for GSTR-9 has been provided.

Illustrations to explain the levy of late fees during amnesty scheme

Scenario 1: PAN based turnover: 5.00 CR, GSTIN Turnover: 2.5 CR, Annual return: FY 2020-21, Due date: 28/02/2022 [Notification 40/2021], Filing date: 10/05/2023, Delay in filing: 436 days

Late fee leviable:

• On day basis - 43,600/- each under CGST and SGST [436 days * Rs 100]
• On Turnover - 62,500/- each under CGST and SGST [0.25% of 2.5 CR]
• Based on Amnesty - 10,000/- each under CGST and SGST [Maximum late fees as per Amnesty]

So, the taxpayer can file the return by paying total Rs. 20,000 as late fees [Rs. 10,000 each under CGST and SGST]

Scenario 2: PAN based turnover: 5.00 CR , GSTIN Turnover: 10 lakhs, Annual return: FY 2020-21, Due date: 28/02/2022 [Notification 40/2021], Filing date: 10/05/2023, Delay in filing: 436 days

Late fee leviable:

• On day basis - 43,600/- each under CGST and SGST [436 days * Rs 100]
• On Turnover - 2,500/- each under CGST and SGST [0.25% of 10 lakhs]
• Based on Amnesty - 10,000/- each under CGST and SGST [Maximum late fees as per Amnesty]

So, the taxpayer can file the return by paying total Rs. 5,000 as late fees [Rs. 2,500 each under CGST and SGST], and the amnesty scheme has no additional advantage.