MM TAX CLUB

Central Board of Indirect Taxes and Customs (CBIC) recently issued notified GST Late Fee Waiver on Annual Returns for Past Financial Years.

In a significant relief to businesses and taxpayers, the Central Government has issued a new notification under section 128 of the Central Goods and Services Tax Act, 2017 (CGST Act). The government, following the recommendations of the GST Council, has decided to waive off a portion of the late fees for specific financial years. This announcement is a major step toward easing compliance for businesses that faced challenges in furnishing their GST reconciliation statements in the past.

Key Highlights of the Notification

1. Late Fee Waiver
   The notification waives the late fee referred to in section 47 of the CGST Act for returns required to be filed under section 44 of the Act. This applies to the financial years:
   • 2017-18
   • 2018-19
   • 2019-20
   • 2020-21
   • 2021-22
   • 2022-23
2. Eligibility for the Waiver
3. The waiver is available to registered persons required to file their reconciliation statement in FORM GSTR-9C along with the annual return in FORM GSTR-9 for the aforementioned financial years.
4. The waiver applies only if the reconciliation statement in FORM GSTR-9C, which was not furnished on time, is filed subsequently on or before March 31, 2025.
5. The waiver applies to the portion of the late fee exceeding the prescribed limit as per section 47 of the CGST Act, provided the conditions are met.
6. It is important to note that no refund will be provided for late fees already paid for delayed filing of FORM GSTR-9C for these financial years.
7. Extent of the Waiver
8. No Refund Clause

Implications for Taxpayers

This waiver offers a much-needed reprieve to businesses that struggled to comply with the requirements of annual return and reconciliation filing due to various reasons. It incentivizes taxpayers to regularize their filings without incurring excessive penalties. However, taxpayers must act promptly to avail of this benefit by ensuring all pending filings are completed by March 31, 2025.

Action Steps for Taxpayers

• Review your filing status for FORM GSTR-9 and GSTR-9C for the financial years 2017-18 to 2022-23.
• File any pending reconciliation statements (FORM GSTR-9C) before the March 31, 2025 deadline.
• Seek professional advice if you’re unsure about the compliance process or need assistance with GST filings.

By leveraging this late fee waiver, businesses can mitigate past compliance lapses and ensure a smoother transition toward meeting future GST obligations.

For further queries or assistance, feel free to reach out to us.