Key Points of the Notification
1. Waiver Conditions
- The waiver applies to late fees exceeding the amount payable under Section 47 for filing FORM GSTR-9C (Reconciliation Statement) along with FORM GSTR-9 (Annual Return).
- FORM GSTR-9C must be filed after the annual return but on or before 31st March 2025.
2. Covered Financial Years
The waiver covers the financial years 2017-18 to 2022-23 (i.e., 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, 2022-23).
3. Eligibility Criteria
- Registered persons required to file FORM GSTR-9C along with FORM GSTR-9, but who failed to do so, are eligible.
- The required forms must be filed on or before 31st March 2025.
4. Refund Clause
No refund will be provided for late fees already paid for the delayed filing of FORM GSTR-9C for the specified financial years.
5. Deadline for Compliance
FORM GSTR-9C must be furnished by 31st March 2025 to avail of the waiver.
6. Turnover Threshold for GSTR-9C
- Applicable to taxpayers with aggregate turnover exceeding ₹5 crore during the relevant financial year.
- Turnover includes taxable supplies, exempt supplies, exports, and interstate supplies.
Late Fee Waiver Under Section 47 of CGST Act
The notification states that the waiver applies to late fees more than the late fee payable under Section 47 of the Central Goods and Services Tax (CGST) Act, 2017. To understand this better, let’s break it down:
Category 1: Turnover ≤ ₹5 Crores
Late Fee | ₹50 per day (₹25 CGST + ₹25 SGST/UTGST) |
Maximum Late Fee | 0.04% of turnover in the State/Union Territory (0.02% CGST + 0.02% SGST/UTGST) |
Applicable Late Fee | Whichever is lower between the daily fee and the maximum cap |
Category 2: Turnover > ₹5 Crores and ≤ ₹20 Crores
Late Fee | ₹100 per day (₹50 CGST + ₹50 SGST/UTGST) |
Maximum Late Fee | 0.04% of turnover in the State/Union Territory (0.02% CGST + 0.02% SGST/UTGST) |
Applicable Late Fee | Whichever is lower between the daily fee and the maximum cap |
Category 3: Turnover > ₹20 Crores
Late Fee | ₹200 per day (₹100 CGST + ₹100 SGST/UTGST) |
Maximum Late Fee | 0.50% of turnover in the State/Union Territory (0.25% CGST + 0.25% SGST/UTGST) |
Applicable Late Fee | Whichever is lower between the daily fee and the maximum cap |
This move aims to reduce the compliance burden on taxpayers and encourage timely submission of pending returns. Ensure to take advantage of this waiver by filing your returns before the deadline.
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Date: 23rd January 2025
Issued By: Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes and Customs (CBIC)
The Central Government has issued Notification No. 08/2025 Central Tax regarding the waiver of late fees under Section 47 of the CGST Act, 2017
Scenario:
For FY 2021-22, the due date for filing GSTR-9 (Annual Return) was 31st December 2022
Case 1: No Late Fee for GSTR-9 Filed On Time but GSTR-9C Not Filed
- Action Taken: You filed GSTR-9 before the due date (31st December 2022) with no late fee (₹0 late fee). However, you forgot to file GSTR-9C, which was applicable to you.
- Current Relief: As per the notification, you can now file GSTR-9C before 31st March 2025 without paying any late fee. The late fee is completely waived off.
Case 2: Late Fee Paid for GSTR-9 but GSTR-9C Not Filed
- Action Taken: You filed GSTR-9 after the due date and paid a late fee of ₹10,000. However, you did not file GSTR-9C, which was applicable to you.
- Actual Late Fee for GSTR-9C: Let’s assume the late fee for GSTR-9C is ₹1,00,000.
- Current Relief: The late fee you have already paid for GSTR-9 (₹10,000) will be adjusted against the total applicable late fee.
- You do not need to pay the remaining ₹90,000, as the excess late fee is waived under the notification.