CBIC Removes Late Fees for GSTR-9C Filings: File by March 2025

The Central Board of Indirect Taxes and Customs (CBIC) has provided considerable assistance for taxpayers by removing late fines for GSTR-9C filings delayed from 2017-18 to 2022-23. This waiver is valid if the pending GSTR-9C is filed on or before March 31, 2025. The GST Council approved this resolution during its 55th meeting, and it is anticipated to boost prompt compliance among taxpayers.

What is the GSTR-9C?

GSTR-9C is a reconciliation statement that taxpayers who are being audited for GST must furnish. It is applied to those whose aggregate revenue exceeds the GST Act's threshold (currently ₹ 5 crore). The statement is prepared and certified by a Chartered Accountant or Cost Accountant to ensure that the data given in GSTR-9 corresponds to the audited financial statements.

Important Details of the Notification

• Financial Years Covered: The waiver covers GSTR-9C filings for fiscal years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23.
• Deadline for Filing: To be eligible for this benefit, taxpayers must file their pending GSTR-9C statements by March 31, 2025.
• Late Fee Waiver: The late fee levied under Section 47 of the CGST Act is waived for late filing of GSTR-9C, provided it is filed before the deadline.
• No Refund for Already Paid Fees: The notification states that if taxpayers have already paid a late charge for the delayed filing of GSTR-9C, no refund will be issued.
• Eligibility: The waiver applies to registered people who are obliged to file GSTR-9C along with their yearly GSTR-9 returns for the relevant fiscal years.

Impact of the Waiver

This waiver provides much-needed assistance to firms who struggled to file GSTR-9C on time for a variety of reasons, including the complexity of GST compliance during the first few years of implementation. The following are some important impacts:

• Encourages Compliance: Taxpayers now have a longer period of time to correct previous noncompliance without incurring late fines, which encourages them to meet their duties.
• Relief for Small and Medium-Sized Enterprises (SMEs): Many SMEs struggled with compliance owing to limited resources and experience. This waiver offers financial relief and a chance to catch up.
• Streamlined GST System: By encouraging firms to file outstanding taxes, the government hopes to enhance the quality and completeness of GST data.
• Ease of Doing Business: This action demonstrates the government's commitment to minimizing compliance requirements and establishing a tax-friendly environment.

Steps for Filing GSTR-9C

If you haven't already submitted your GSTR-9C for the specified fiscal years, here's how you may do it:

1. Prepare a Reconciliation Statement: Work with a Chartered Accountant or Cost Accountant to compile the GSTR-9C statement by comparing your yearly returns (GSTR-9) to your audited financial statements.
2. Complete the GSTR-9 Filing: Before proceeding with GSTR-9C, make sure that the related GSTR-9 for the relevant financial year has been filed.
3. Certification by the Auditor: The reconciliation statement must be signed by a Chartered Accountant or Cost Accountant.
4. Submit Using the GST Portal: Log onto the GST site, upload the verified GSTR-9C form, and submit it online.

Challenges and Observations

• Complexity of Reconciliation: Preparing the GSTR-9C needs rigorous data reconciliation, which may be time-consuming and error-prone, particularly for enterprises with significant transaction volumes.
• Dependence on Auditors: The certification requirement increases taxpayer reliance and costs.
• Awareness Among Taxpayers: Despite the waiver, many taxpayers may be unaware of the assistance granted. Awareness initiatives by the government and professional organizations are critical.

Conclusion

The government's decision to remove late fines for GSTR-9C filings from FY 2017-18 to FY 2022-23 is a positive step toward assisting companies in addressing lingering compliance difficulties. To avoid future penalties, taxpayers must take advantage of this chance and file their returns on schedule by March 31, 2025. This move not only reduces financial costs, but it also increases confidence between the government and the business community.

By simplifying compliance and lowering fines, India's GST system is progressively becoming a more taxpayer-friendly structure, opening the path for improved compliance and a stronger taxing system.

Leave a reply