Clarification on Late Fee
for Delay in Filing FORM GSTR-9C
By Yogesh Verma (CS LLB) / 2 min. read / GST Article
Introduction: The Government
of India, through Circular
No. 246/03/2025-GST dated 30th January 2025, has provided clarification on
the applicability of late fees for delays in furnishing FORM GSTR-9C, the
reconciliation statement under the Goods and Services Tax (GST) system. This
clarification is essential for businesses that are required to file FORM
GSTR-9C along with their annual return in FORM GSTR-9.
This
article will explain the provisions, the impact of the delay, and the relief
granted under the notification in simple and easy-to-understand language.
What is FORM GSTR-9C?
FORM
GSTR-9C is a reconciliation statement that must be filed by businesses whose
annual turnover exceeds ₹5 crore. It compares the data declared in FORM GSTR-9
(annual return) with the audited financial statements.
Before
1st August 2021, businesses with turnover above ₹2 crore were required to get
their accounts audited and file GSTR-9C certified by a Chartered Accountant
(CA). However, after the amendment, self-certification is allowed for businesses
with turnover exceeding ₹5 crore.
Late Fee for
Delay in Filing FORM GSTR-9C
1. Legal Provisions
Related to Late Fees
·
Section 47(2) of the CGST Act: It states
that a late fee is levied when a taxpayer fails to furnish the annual return
(FORM GSTR-9) within the prescribed due date.
·
Rule 80 of the CGST Rules: This rule
mandates that taxpayers exceeding the turnover threshold must furnish a
self-certified reconciliation statement in FORM GSTR-9C along with FORM GSTR-9.
2. Late Fee
Calculation for Delay in FORM GSTR-9C
·
If a taxpayer is required to furnish
FORM GSTR-9C along with FORM GSTR-9, then the annual return is considered
incomplete until both forms are filed.
·
The late fee will be calculated from the
due date of the annual return until the date when both GSTR-9 and GSTR-9C are
filed.
·
If GSTR-9C is filed after GSTR-9, the
late fee will be calculated until the date of filing GSTR-9C.
3. Key Points
Regarding Late Fee
·
The late fee is not charged separately
for FORM GSTR-9 and FORM GSTR-9C.
·
The penalty applies only once, for the
entire period of delay, covering both forms.
·
If GSTR-9C is required but not filed,
the annual return is treated as not filed, and late fees will continue
accumulating.
Relief
Provided for Delays in GSTR-9C Filing:
The
government has waived the additional late fee under Notification
No. 08/2025 – Central Tax, dated 23rd January 2025, for financial years up
to 2022-23.
1. Conditions for
Late Fee Waiver
·
The late fee exceeding the prescribed
amount will not be charged if FORM GSTR-9C is filed by 31st March 2025.
·
This relief applies only to previous
financial years up to FY 2022-23.
·
No refunds will be provided for late
fees already paid.
2. Who Benefits from
This Relief?
·
Taxpayers who missed filing FORM GSTR-9C
for past financial years can now submit it before 31st March 2025 without
paying additional late fees.
·
Businesses that filed GSTR-9 on time but
delayed GSTR-9C now get an opportunity to file without additional penalties.
Impact of
This Clarification on Businesses
1. For Businesses
with Turnover Above ₹5 Crore
·
If you are required to file GSTR-9C,
ensure that it is submitted along with GSTR-9 to avoid late fees.
·
If you missed filing in previous years,
use this relief window to submit GSTR-9C before 31st March 2025.
2. or Small and
Medium Enterprises (SMEs)
·
If your turnover exceeds ₹5 crore,
self-certify and file GSTR-9C on time to avoid penalties.
·
If you have pending returns from
previous years, submit them before 31st March 2025 to benefit from the waiver.
Conclusion:
The government’s clarification ensures uniform implementation of GST provisions
and prevents unnecessary penalties for taxpayers. Businesses should take
advantage of the late fee waiver until 31st March 2025 to avoid additional
financial burdens.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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