Individuals who have received an order from the Department imposing a penalty for the non-filing of GSTR-9 and GSTR-9C, as well as those who are aware of their obligation to file these forms, now have the opportunity to do so for the financial years 2017-18 to 2022-23. As per Notification No. 8/2025, the CBIC is offering a waiver of late fees for delayed GSTR-9C filings, provided the forms are submitted by March 31, 2025.
Please note that the deadline for compliance is fast approaching. We strongly recommend taking immediate action to avoid any penalties that may be imposed. It is important to note that if any fees have already been paid, refunds will not be granted.
What are GSTR-9 and GSTR-9C?
GSTR-9 is an annual GST return that must be filed by registered taxpayers (excluding Input Service Distributors, certain exempt persons, and non-resident taxpayers) by December 31 of the year following the relevant financial year. The requirement applies to businesses with an aggregate turnover exceeding ₹2 Crore.
GSTR-9C, on the other hand, is a reconciliation statement that must be filed by taxpayers whose annual turnover exceeds ₹5 Crore. This form compares the figures reported in the GSTR-9 with the audited financial statements, ensuring consistency and compliance. The filing of GSTR-9C is mandatory for such taxpayers, and it must be signed off by a Chartered Accountant (CA) or an equivalent professional.
However, it is important to note that this waiver applies only to the late fees for GSTR-9C. Any late fees already paid will not be refunded.
If a taxpayer has filed GSTR-9 on time but failed to submit GSTR-9C, this new provision allows them to complete the filing without incurring additional penalties. To prevent any GST notices or demands, taxpayers are encouraged to submit their GSTR-9C before the deadline.
Conditions for the Waiver
The waiver of late fees is applicable under the following conditions:
1. Timely Filing of GSTR-9: If GSTR-9 was filed on time, the waiver of late fees applies for GSTR-9C, provided it is filed by March 31, 2025.
2. Late Filing of GSTR-9 with Paid Fees: If GSTR-9 was filed late but the taxpayer has already paid the applicable late fees, additional fees for GSTR-9C will not be imposed.
3. Show Cause Notices (SCNs): Taxpayers who have received SCNs for non-payment of late fees related to GSTR-9C filings can request the cancellation of these notices upon filing GSTR-9C.
4. The waiver is applicable to the amount of late fees "In excess of the late fee payable under Sec. 47(1), read with Rule 80(3) of the CGST Act,2017, up to the date of Furnishing Form GSTR-9C
Late Fee on GSTR- 9 and GSTR- 9C (Annual Return for Regular Taxpayers)
|
Turnover in Relevant Financial Year |
Per Day Late Fee |
Maximum Late Fee |
|
Upto Rs 2 Crore* |
No Late Fee |
Not Applicable |
|
From 2 Crore to 5 Crore** |
Rs 50 |
0.04% of the Turnoverin the State or UT |
|
From 5 Crore to 20 Crore** |
Rs 100 |
0.04% of the Turnoverin the State or UT |
|
Above Rs 20 Crore*** |
Rs 200 |
0.50% of the Turnoverin the State or UT |
* Exempted the registered person who has the annual turnover up to Rs 2 crore for FY 23-24 as per Notification 14/2024 of Central Tax. Similarly, exemption notifications has been released for previous financial years as well.** The above late fee is applicable from financial year 2022-23 onwards as per Notification 7/2023 of CentralTax.*** The above late fee is applicable is as per Section 47(2) of the CGST Act 2017.
Importance of Timely Filing
Failure to submit GSTR-9C by the extended deadline of March 31, 2025, may lead to penalties, scrutiny, or audits. The GST department may initiate proceedings for discrepancies in outward supplies, tax liabilities, or input tax credit (ITC) claims. Taxpayers should avoid such risks by ensuring timely compliance.
Consequences of Non-Compliance
If taxpayers fail to meet the filing deadline for GSTR-9C, they may face the following consequences:
- Penalties under Section 125 of the CGST Act: A penalty of up to ₹25,000 can be imposed for non-compliance.
- Increased Scrutiny: Persistent non-filing may attract greater scrutiny, audits, and potential fraud investigations.
- GST Audits: Non-compliant taxpayers may face audits or assessments to identify discrepancies or tax evasion.
Conclusion
The CBIC's waiver of late fees for GSTR-9C filings provides significant relief for taxpayers who missed the filing deadline for the financial years 2017-18 to 2022-23. Waiver not applied on the late fees incurred on GSTR-9 on late fees waiver is only for GSTR-9C By submitting GSTR-9C by March 31, 2025, businesses can avoid additional penalties and ensure their compliance with GST regulations.
The author can also be reached at varunmukeshgupta96@gmail.com.
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