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File GSTR-9C by March 31 to get late fee waive-off and avoid GST notice

GSTR-9C is a reconciliation statement between the annual returns filed in GSTR-9 and the audited annual financial statements of the taxpayer

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The Finance Ministry recently issued a notification about Goods and Services Tax (GST) payers who have not filed the annual reconciliation statement using the GSTR-9C form.
 
According to the circular, such taxpayers have an opportunity not to pay any outstanding late fees for failing to file GSTR-9C for FY 2017-18, FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22, or FY 2022-23. To avail of the waive-off, the pending GSTR-9C must be filed by March 31, 2025.
 
Who needs to file GSTR-9C and GSTR-9?
 
GSTR-9 is an annual return to be filed by taxpayers who are registered under GST. This return consolidates the information furnished in the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) during the financial year. It includes details of outward and inward supplies made or received under different tax heads, such as CGST, SGST/UTGST, IGST, and HSN codes.
 
 
All registered taxpayers whose aggregate annual turnover on PAN basis over Rs 2 crore (optional for below Rs 2 Crores) under GST must file GSTR-9, with a few exceptions:
 
Composition dealers
 
Casual taxable persons
 
Input service distributors
 
Non-resident taxable persons
 
Person deducting tax under section 51(TDS) and collecting tax under section 52(TCS)
 
OIDAR provider outside India to an unregistered person in India
 
Department of CG or SG or local authority subject to audit by the CAG
 
Filing GSTR-9 is mandatory for regular taxpayers, and it provides a detailed summary of all the transactions made throughout the year.
 
GSTR-9C is a reconciliation statement between the annual returns filed in GSTR-9 and the audited annual financial statements of the taxpayer. All registered dealers who have filed GSTR-9 and with aggregate annual turnover on PAN basis is over Rs 5 crore (optional for below Rs 5 crore) must file GSTR9C.
 
What is the purpose of filing GSTR-9C?
 
GSTR-9C is a reconciliation statement between the annual returns filed in GSTR-9 and the audited annual financial statements of the taxpayer. GSTR-9C consists of gross and taxable turnover as per the books reconciled with the respective figures as per the consolidation of all the GST returns for a FY.  Hence, any differences arising from this reconciliation exercise will be reported in this statement, along with the reasons for the same and then certified by the taxpayer themselves. It must be filed on the GST portal or through a facilitation centre by the taxpayer, along with other documents such as a copy of the Audited Accounts and Annual Return in form GSTR-9.
 
Rajarshi Dasgupta, executive director – tax at AQUILAW, explained how the new helps impacts taxpayers:
 
GSTR-9 and GSTR-9C both carry separate late fees for filing beyond the prescribed due dates. This notification provides much-needed relief for businesses that struggled to meet compliance deadlines for multiple financial years, especially during the initial years of GST implementation and the COVID-19 pandemic. The relief could be substantial in case for GSTR-9 has been filed long back as the waiver has been provided towards the late fee applicable from the date of filing of GSTR-9 till the date of filing of GSTR-9C provided pending GSTR-9C is filed by 31.03.2025. Further, this waiver aligns with the government’s broader goal of simplifying GST compliance and supporting businesses, especially small and medium enterprises (SMEs) that may lack extensive resources for tax compliance.
 
However, taxpayers who have already paid late fees for delayed submission of GSTR-9C are not eligible for a refund under this notification.
Topics : GST

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First Published: Jan 29 2025 | 2:45 PM IST

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