GST Council Clarifies Late Fee Applicability and Approves Waiver for FORM GSTR-9C
Date: December 21, 2024
Category: 55th GST Council
Read Time: 4 Minutes
The 55th GST Council Meeting, chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer, Rajasthan, addressed late fee concerns for filing the Annual Return (FORM GSTR-9) and Reconciliation Statement (FORM GSTR-9C) under the CGST Act, 2017.
Key Decisions
- Clarification on Late Fee Applicability
The Council recommended a circular to clarify late fees under Section 47(2) of the CGST Act, 2017. These fees apply to delays in filing complete Annual Returns under Section 44, including both FORM GSTR-9 and FORM GSTR-9C, wherever required.
- Waiver of Late Fee for Past Returns
For the financial years 2017-18 to 2022-23, the Council proposed a notification under Section 128 of the CGST Act, 2017. The notification will waive late fees exceeding the amount payable, provided FORM GSTR-9C is filed by March 31, 2025.
Implications
- Clarity on Late Fee: The circular removes confusion regarding late fee applicability for GSTR-9 and GSTR-9C filings.
- Relief for Taxpayers: Waiving excessive late fees reduces the burden on businesses and encourages timely filing.
- Compliance Encouragement: The March 31, 2025, deadline motivates businesses to regularize filings without financial penalties.
These measures simplify compliance and offer significant relief to taxpayers, ensuring smoother GST operations.
