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Published: Feb 24, 2023
Updated: Feb 24, 2023

GST Council Meeting Rationalizes Late Fee for Belated Filing of Annual GST Returns in Form GSTR-9

The GST Council convened for the first time after the unveiling of the government's budget for 2023. The meeting was chaired by Finance Minister Nirmala Sitaraman. The council made a significant decision to rationalize the late fee for delayed filing of the annual GST return GSTR-9.

Late fee rationalization for FY 2022-23 onwards

Presently, the late fee for delayed filing of the annual return in Form GSTR-9 is Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST). The GST Council recommended that for registered persons having an aggregate turnover in a financial year up to Rs. 20 crores, the late fee should be rationalized for delayed filing of the annual return in Form GSTR-9 for FY 2022-23 onwards.

Late fee charges for registered persons

For registered persons with an aggregate turnover of up to Rs. 5 crores in the said financial year, the late fee will be Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST), subject to a maximum of an amount calculated at 0.04% of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST). For registered persons with an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores in the said financial year, the late fee will be Rs. 100 per day (Rs. 50 CGST + Rs. 50 SGST), subject to a maximum of an amount calculated at 0.04% of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).

Advisory for taxpayers

It's essential to note that the late fee for belated filing of GST Annual Returns cannot be waived or reduced by the GST authorities, and it must be paid along with the outstanding tax liability. Therefore, taxpayers are advised to file their GST annual returns within the due date to avoid any late fee charges. Belated filing of returns can also lead to cancellation of GST registration, inability to avail ITC, and many more complications.

Decision beneficial to taxpayers

GST Council's decision to rationalize the late fee for delayed filing of the annual GST return GSTR-9 will be beneficial to taxpayers, especially those with an aggregate turnover of up to Rs. 20 crores. However, it's vital to file returns within the due date to avoid any late fee charges and other complications.