Have you still not filed your GSTR 9C? Now is the time to check whether you qualify for a fee waiver! It's important to stay on top of your compliance obligations, and there may be an opportunity for you to save on penalties or fees. Be sure to review the eligibility criteria to determine if you can benefit from a waiver before it's too late.
Notification Highlights
Waiver of Late Fees:
Late fees under section 47 of the CGST Act are waived in excess of the standard late fee for registered persons who:
Were required to furnish FORM GSTR-9C (the reconciliation statement) along with the annual return in FORM GSTR-9, but failed to do so.
The late fees shall be limited to the late fees paid for GSTR-9.
Applicability:
This waiver is applicable for financial years 2017-18 to 2022-23
The waiver applies only if the registered person furnishes the delayed FORM GSTR-9C on or before 31st March 2025.
Conditions:
No Refund Clause: Any late fees already paid for the delay in filing FORM GSTR-9C will not be refunded.
Under Section 47 of the CGST Act, the standard prescribed late fee for delayed filing of returns, including annual returns (FORM GSTR-9), is as follows:
For Annual Return (FORM GSTR-9):
Late Fee Amount:
Rs. 200 per day of delay: (Rs. 100 per day under CGST & SGST)
Maximum Late Fee:
The maximum late fee is capped at 0.50% of the taxpayer's turnover in the state or union territory: (0.25% for CGST & SGST/UTGST)
Example 1: (Turnover Rs. 20 Crores, 9C Delay 400 Days)
Before Notification:
Late Fee for Delay in Filing GSTR-9: Rs. 6,000 (Rs. 200 × 30 days, considering a delay of 30 days in filing GSTR 9).
Daily Late Fee for GSTR-9C: Rs. 200 (Rs. 100 CGST + Rs. 100 SGST)
Total Late Fee for 400 Days: Rs. 200 × 400 = Rs. 80,000
Maximum Cap Under Section 47:
0.50% of turnover = 0.50% × Rs. 20 Crores = Rs. 10,00,000 (Rs. 5,00,000 CGST + Rs.5,00,000 SGST).
Since Rs. 80,000 < Rs. 10,00,000, the late fee payable is Rs. 60,000 before the notification.
After Notification: Impact of Notification
Payable Late Fee: Rs. 6,000 (aligned with the late fee for GSTR-9).
Waiver Amount: Rs. 80,000 - Rs. 6,000 = Rs. 74,000.
Conclusion:
Before Notification: The taxpayer would have paid Rs. 80,000 for delayed GSTR-9C filing.
After Notification: The late fee is reduced to Rs. 6,000, resulting in a waiver of Rs. 74,000.
Example 2: (Turnover Rs. 6 Crores, 9C Delay 1800 Days)
Before Notification:
Late fee for GSTR-9 = Rs. 6,000 (for delay in filing).
Late fee for 1800 days: Rs. 200 × 1800 = Rs. 3,60,000.
Maximum Cap Under Section 47:
0.50% of turnover = 0.50% × Rs. 6 Crores = Rs. 3,00,000 (Rs. 1,50,000 CGST + Rs.1,50,000 SGST).
After Notification: Impact of Notification:
The late fee beyond the cap (Rs. 3,00,000) is irrelevant here since the calculated fee is already reduced to the cap.
However, the notification ensures that taxpayers who file GSTR-9C late and pay the minimum late fee for GSTR-9 (Rs. 6,000 in this case) will not have to pay more than that amount.
Payable Late Fee After Notification:
The late fee reduces to Rs. 6,000 instead of Rs. 3,00,000.
Waiver Amount: Rs. 3,00,000 - Rs. 6,000 = Rs. 2,94,000.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
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Regards
Asif Hussain
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