Understanding Late Fee Applicability for Delay in Filing FORM GSTR-9C: CBIC Clarification

Applicability for Delay in Filing FORM GSTR-9C

Applicability for Delay in Filing FORM GSTR-9C The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification regarding the applicability of late fees for the delayed filing of FORM GSTR-9C, the reconciliation statement under GST. Applicability for Delay in Filing FORM GSTR-9C This clarification, issued through Circular No. CBIC-20001/14/2024-GST dated 30th January 2025, addresses concerns raised by taxpayers regarding whether late fees under Section 47 of the CGST Act, 2017 apply when FORM GSTR-9C is filed after the due date of FORM GSTR-9.

In this blog, we will break down the clarification, its implications, and the relief provided for past financial years.

What is FORM GSTR-9C?

FORM GSTR-9C is a self-certified reconciliation statement that reconciles the turnover declared in the annual return (FORM GSTR-9) with the audited financial statements of a taxpayer. Applicability for Delay in Filing FORM GSTR-9C It is mandatory for taxpayers whose aggregate turnover exceeds ₹5 crore in a financial year.

Prior to 1st August 2021, GSTR-9C was required to be duly certified by a Chartered Accountant (CA) or Cost Accountant. However, post this date, the certification requirement was removed, allowing taxpayers to self-certify the reconciliation statement.

Clarification on Late Fee for Delayed Filing of FORM GSTR-9C

The key points from the CBIC clarification regarding late fees for delay in filing FORM GSTR-9C are as follows:

1. Late Fee Applicability Under Section 47(2)

• As per Section 47(2) of the CGST Act, a late fee applies for failure to furnish the complete annual return under Section 44 by its due date.
• The annual return includes:
  • FORM GSTR-9 (Annual Return)
  • FORM GSTR-9C (Reconciliation Statement) (where applicable)
• If GSTR-9C is required but not filed, the annual return is considered incomplete, and the late fee applies from the due date until both forms are submitted.

2. Calculation of Late Fee

The late fee calculation follows these conditions:

• If GSTR-9C is not required, the late fee applies only for delayed filing of GSTR-9.
• If GSTR-9C is required:
  1. If GSTR-9 and GSTR-9C are filed together, the late fee applies up to the filing date.
  2. If GSTR-9 is filed first and GSTR-9C is filed later, the late fee applies until the date GSTR-9C is filed.

3. No Separate Late Fee for GSTR-9 and GSTR-9C

• The late fee is not levied separately for delays in filing GSTR-9 and GSTR-9C. Applicability for Delay in Filing FORM GSTR-9C
• It is calculated as a single late fee for the period from the due date of the annual return until the complete return (both GSTR-9 & GSTR-9C) is filed.

https://www.gst.gov.in/

Relief for FY 2022-23 & Earlier Years

Recognizing taxpayer difficulties, CBIC has provided relief via Notification No. 08/2025-Central Tax dated 23rd January 2025:

• Waiver of additional late fees for past years: Any excess late fee beyond the due date of GSTR-9 has been waived if GSTR-9C is filed by 31st March 2025.
• Who benefits?
  • Taxpayers who did not file GSTR-9C for any financial year up to FY 2022-23 can now file it by 31st March 2025 without incurring additional late fees. Applicability for Delay in Filing FORM GSTR-9C
  • Applicability for Delay in Filing FORM GSTR-9C Only the late fee applicable up to the filing of GSTR-9 will be considered.
• No Refund of Late Fee Already Paid
  • If a taxpayer has already paid late fees for the delayed filing of FORM GSTR-9C, no refund will be granted for the amount paid.

Practical Implications for Taxpayers

What Should Taxpayers Do Now?

• Check pending GSTR-9C filings: Applicability for Delay in Filing FORM GSTR-9C Taxpayers with turnover exceeding ₹5 crore should ensure they have filed both GSTR-9 and GSTR-9C for previous years.
• File before 31st March 2025: If GSTR-9C is pending for FY 2022-23 or earlier, it should be filed by 31st March 2025 to avoid additional late fees.
• Avoid future late fees: Ensure timely filing of GSTR-9 and GSTR-9C together to prevent penalty accumulation.

Impact on Late Fee Calculation

Conclusion

The CBIC clarification provides much-needed transparency on the applicability of late fees for delayed GSTR-9C filing. Applicability for Delay in Filing FORM GSTR-9C The waiver of additional late fees for previous years up to FY 2022-23 offers significant relief to taxpayers, provided they file their pending reconciliation statements by 31st March 2025. Applicability for Delay in Filing FORM GSTR-9C Businesses should ensure compliance to avoid unnecessary penalties and streamline their GST filing processes in the future.

If you have pending GSTR-9C filings, act now to avoid additional costs! Stay updated with the latest GST changes by following our blog.

FAQs

1. Is it mandatory to file GSTR-9C if turnover is below ₹5 crore?
   No, GSTR-9C is required only if the aggregate turnover exceeds ₹5 crore in a financial year.
2. If I filed GSTR-9 late but filed GSTR-9C on time, will a late fee apply?
   Yes, a late fee will apply for the delay in filing GSTR-9.
3. Can I claim a refund for the late fee already paid for GSTR-9C?
   No, the CBIC has clarified that no refund will be issued for late fees already paid.
4. What happens if I don’t file GSTR-9C by 31st March 2025 for past years?
   If you miss the deadline, the full late fee will apply, and you may face compliance issues.

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