1. Background and Purpose
- The Central Board of Indirect Taxes and Customs (CBIC) issued this circular to clarify the applicability of late fees under Section 47 of the CGST Act, 2017 for the delay in furnishing FORM GSTR-9 (Annual Return) and FORM GSTR-9C (Reconciliation Statement).
- This clarification was issued in response to representations seeking confirmation on whether a separate late fee is applicable when GSTR-9C is filed late but after GSTR-9.
2. Key Clarifications on Late Fees
Legal Provisions (Before and After 01.08.2021)
- Before 01.08.2021: Section 44(2) of the CGST Act required registered persons to submit audited annual accounts and a reconciliation statement (GSTR-9C) along with their annual return (GSTR-9).
- After 01.08.2021: The mandatory audit requirement was removed, and taxpayers with an aggregate turnover exceeding ₹5 crore must submit a self-certified GSTR-9C along with GSTR-9.
3. Late Fee Calculation for GSTR-9 & GSTR-9C
- If GSTR-9C is mandatory, then the annual return filing is incomplete unless both GSTR-9 and GSTR-9C are submitted.
- The late fee under Section 47(2) applies to the entire annual return, meaning:
- If both GSTR-9 and GSTR-9C are delayed, the late fee applies from the due date until the later date of submission.
- If GSTR-9 is submitted first, but GSTR-9C is delayed, the late fee continues until GSTR-9C is furnished.
- No separate late fee is imposed for GSTR-9C alone.
4. Late Fee Waiver for Delayed GSTR-9C Filings (Up to FY 2022-23)Notification No. 08/2025-Central Tax (Dated 23.01.2025): Late fees for delayed filing of GSTR-9C for FY 2022-23 and earlier years are waived, provided:
- GSTR-9C is filed on or before 31st March 2025.
- However, no refunds will be granted for late fees already paid.
5. Conclusion
- Taxpayers required to file both GSTR-9 and GSTR-9C must do so together to avoid late fees.
- No additional late fee is levied separately for GSTR-9C if delayed.
- A limited-time waiver is available for FY 2022-23 and earlier filings if completed by 31st March 2025.