Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025
Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 The Government of India has recently issued Notification No. 08/2025 – Central Tax, dated 23rd January 2025, to provide relief to taxpayers by waiving the late fees for filing FORM GSTR-9 (Annual Return) and FORM GSTR-9C (Reconciliation Statement) for certain financial years. Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 This move, recommended by the GST Council, aims to ease the compliance burden on businesses and encourage timely filing of overdue returns. Here’s everything you need to know about this notification.
What Does Notification No. 08/2025 Say?
This notification waives the amount of late fees exceeding the prescribed limit under Section 47 of the CGST Act, 2017, for taxpayers who:
- Failed to file FORM GSTR-9C (Reconciliation Statement) along with FORM GSTR-9 (Annual Return) for financial years 2017-18 to 2022-23.
- Subsequently file the required reconciliation statement (FORM GSTR-9C) on or before 31st March 2025.
However, no refund will be issued for late fees already paid for delayed filing of FORM GSTR-9C.
Key Highlights of the Notification
Financial Years Covered
The waiver applies to the following financial years:
- 2017-18
- 2018-19
- 2019-20
- 2020-21
- 2021-22
- 2022-23
Applicable Forms
- FORM GSTR-9: Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 Annual return to be filed by all registered taxpayers under GST whose aggregate turnover exceeds ₹2 crore.
- FORM GSTR-9C: Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 Reconciliation statement required for taxpayers with turnover exceeding the prescribed threshold (currently ₹5 crore).
Conditions for the Waiver
- The late fee waiver is applicable only if FORM GSTR-9C is filed on or before 31st March 2025.
- The late fees exceeding the prescribed limits under Section 47 will not be charged.
- No refunds will be granted for late fees already paid.
- Legal Basis
- The notification is issued under Section 128 of the CGST Act, 2017, which empowers the government to waive penalties or fees on the recommendations of the GST Council.
Impact of the Notification
Relief for Businesses
Many businesses have faced challenges in filing GSTR-9 and GSTR-9C for previous years due to technical issues, lack of awareness, or compliance complexities. This waiver reduces their financial burden, allowing them to comply without incurring excessive late fees.
Encouragement for Compliance
By extending the waiver till 31st March 2025, the government provides taxpayers with ample time to file overdue reconciliation statements and rectify past non-compliance.
No Refund Clause
While the waiver offers relief for late fees going forward, businesses that have already paid late fees will not receive a refund. This ensures fairness while encouraging timely compliance in the future.
How to File GSTR-9C Along with GSTR-9?
To avail of the waiver, taxpayers must:
- Log in to the GST Portal: Access the GST portal using your credentials.
- File FORM GSTR-9 (if not already filed): Ensure that the annual return for the relevant financial year has been filed.
- Prepare and File FORM GSTR-9C:
- Download the reconciliation statement format.
- Get the statement audited by a chartered accountant or cost accountant (if applicable).
- Upload the digitally signed reconciliation statement on the portal.
- Submit Before 31st March 2025: File both forms before the deadline to benefit from the late fee waiver.
Who Benefits from This Waiver?
The waiver is particularly beneficial for:
- Large Businesses: Organizations with turnovers exceeding ₹5 crore, required to file GSTR-9C.
- Taxpayers with Pending Filings: Those who missed filing reconciliation statements for earlier financial years.
- Accountants and Compliance Professionals: Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 It offers a chance to rectify past non-compliance without additional penalties.
Frequently Asked Questions (FAQs)
Q1. What is FORM GSTR-9?
FORM GSTR-9 is the annual return that provides a summary of outward and inward supplies, taxes paid, input tax credit availed, and demands/refunds for a financial year.
Q2. What is FORM GSTR-9C?
FORM GSTR-9C is a reconciliation statement that matches the figures reported in the GSTR-9 with the audited financial statements of the taxpayer.
Q3. What happens if I miss the 31st March 2025 deadline?
If you fail to file FORM GSTR-9C by the deadline, you will be liable to pay the late fees as per Section 47 of the CGST Act.
Q4. Can I claim a refund for late fees already paid?
No, the notification explicitly states that refunds for late fees already paid will not be granted.
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Conclusion
Notification No. 08/2025 is a much-needed relief measure for taxpayers struggling with overdue filings of GSTR-9 and GSTR-9C. Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 By waiving excess late fees, the government promotes compliance and reduces the financial burden on businesses. Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 Taxpayers are advised to take advantage of this waiver by filing their reconciliation statements before 31st March 2025 to avoid penalties.
Timely compliance not only saves money but also builds a strong foundation for smooth GST operations in the future. Waiver of Late Fees for Filing GSTR-9 and GSTR-9C under Notification No. 08/2025 For assistance with filing GSTR-9 or GSTR-9C, consult a GST expert or chartered accountant today.
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