The GST Council, in its 49th meeting held on February 18, 2023, recommended rationalizing the late fee for delayed filing of annual returns in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year up to Rs 20 crore. In further relief to a large number of taxpayers, Amnesty in respect of pending returns in FORM GSTR-9 has been provided by way of conditional waiver/ reduction of late fees.
Late fees in excess of Rs 10,000 payable under Section 47 will be waived if the registered person files pending annual returns for financial years 2017-18 to 2021-22 between April 1 and June 30, 2023. Furthermore, the late fee for financial years 2022-23 and later has been reduced/rationalized.
CBIC Notification 7/2023: GSTR-9/9C Late Fee Amnesty upto FY 2021-22 and Reduction from FY 2022-23
The CBIC has notified the GSTR-9/9C Late Fee Amnesty upto FY 2021-22 and along with Reduction in late fee from FY 2022-23 and onwards:
CBIC Central Tax Notification 7/2023 dated 31/03/2023: GSTR-9/9C late filing fee rationalised for FY 2022-23 & onwards for taxpayers with annual turnover of up to Rs 20 crore; amnesty to non-filers for the FYs 2017-18 to 2021-22 by capping the late fee
1. Reduction in Late Fees from FY 2022-23 onwards for Taxpayers with AT upto Rs 20 Crore
CBIC retionalises/reduces the late filing fee in respect of Annual Return in Form GSTR-9/9C for FY 2022-23 & onwards for taxpayers with annual turnover of up to Rs 20 crore. The table below highlights the reduction in late fees for different aggregate turnovers:
| Aggregate Turnover in relevant Financial Year | Exhisting Late Fees (CGST + SGST) | Revised Late Fees (CGST+SGST) |
|---|---|---|
| Up to 5 Crores | Rs. 200 per day, Subject to the maximum of 0.5% of turnover in state or Union territory | Rs. 50 per day, Subject to the maximum of 0.04% of turnover in state or Union territory |
| 5 crores to 20 crores | Rs. 200 per day, Subject to the maximum of 0.5% of turnover in state or Union territory | Rs. 100 per day, Subject to the maximum of 0.04% of turnover in state or Union territory |
| Above 20 crores | Rs. 200 per day, Subject to the maximum of 0.5% of turnover in state or Union territory | No Change |
2. Amnesty for Past Financial Years (up to FY 2021-22)
A proviso has been inserted to the above-mentioned notification to limit the amount of late fees for filing the return under section 44 of the CGST Act viz. Annual Return, which may include the self-certified reconciliation statement by the registered person who fails to file such returns for any of the Financial Years starting from 2017-18 to 2021-22 up to INR 20,000 (CGST + SGST), if such registered person furnishes such return in a period starting from April 1, 2023, to June 30, 2023.
3. No reduction in late fee for taxpayers with turnover above Rs 20 crore
It is important to note that there is no reduction in the late fees for delay in filing the return under section 44 of the CGST Act viz. Annual Return may include the self-certified reconciliation statement (Forms GSTR-9 & GSTR-9C) for the registered persons with aggregate turnover exceeding INR 20 crores in the relevant financial year. The current late fees will apply to such a registered person.
Conclusion
The Amnesty towards late fee for non-filing of Annual Return (GSTR 9/ 9C) for the FY 2017-18 to 2021-22 and FY 2022-23 & onwards will benefit small businesses with aggregate turnovers up to INR 20 crores. The reduction in late fees for delayed filing of annual returns in FORM GSTR-9 for FY 2022-23 onwards is a welcome move that will provide relief to taxpayers. However, it is important to ensure timely compliance with deadline provided by the CBIC.
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Extension of Deadlines for GST Amnesty Schemes till 31st August 2023
Notices were issued by the CGST authorities demanding late fee in full from persons who had filed returns, though belatedly but before 1st of April, 2023. Are they also eligible for the reduced late fee.
The GST Council has recommended in 50th meeting held on 11th July 2023 to exetnd the amnesty scheme up to 31st August 2023 for delays in filing annual gst return by taxpayers with turnover up to Rs 20 crore for the tax periods up to FY 2021-22.