Keep the Deadline in Mind: By March 31, 2025, submit your GSTR-9 and GSTR-9C returns to receive a waiver of the late fee.

The GSTR-9 and GSTR-9C yearly filings, which are required by the Goods and Services Tax (GST) system, may sometimes be complicated and time-consuming to file. In the past, taxpayers have faced severe financial hardships due to the high late costs associated with filing their forms. Nonetheless, the government recently implemented a program that waives late fees for GSTR-9 and GSTR-9C files, which is a welcome respite. This blog post seeks to offer a thorough manual for comprehending and utilizing this plan prior to the important March 31st, 2025 deadline.

Knowledge about GSTR-9 and GSTR-9C

Let's quickly review the contents of GSTR-9 and GSTR-9C before getting into the waiver plan:

• GSTR-9 (Annual Return): Regardless of turnover (with a few exceptions), all registered taxpayers under GST are required to file the GSTR-9 annually. It compiles the quarterly or monthly returns that were submitted during the fiscal year.
• GSTR-9C (Reconciliation Statement): This is a statement that compares the yearly returns submitted in GSTR-9 with the audited annual financial statements. For taxpayers whose total revenue for the fiscal year exceeds ₹5 crore, it is required.

Key Features of the Late Fee Waiver Scheme

To lessen the burden on taxpayers who have postponed completing their GSTR-9 and GSTR-9C reports, the government has implemented a conditional late fee waiver program. Here are the main points of interest:

• Applicability: For fiscal years up to and including FY 2023–2024, the program covers late costs for GSTR-9 and GSTR-9C filings.
• Waiver Period: The program is in effect from the notice date until March 31, 2025.
• Conditional Waiver: Because the waiver is conditional, taxpayers have to submit their unfiled taxes by the deadline.

Updated GSTR-9 Late Fee Schedule

• Turnover up to ₹5 crore: 0.04% of revenue, or a maximum late fee of ₹50 per day (₹25 CGST + ₹25 SGST).
• Turnover between ₹5 and ₹20 crore: A maximum late fee of ₹100 per day (₹50 CGST + ₹50 SGST) is applied on revenue, up to a maximum of 0.04% of turnover.
• Turnover over ₹20 crore: A maximum of 0.5% of turnover may be charged as a late fee, with a daily limit of ₹200 (₹100 CGST + ₹100 SGST).

Updated GSTR-9C Late Fee Schedule

• Turnover up to ₹5 crore: 0.04% of turnover is the maximum late fee of ₹50 per day (₹25 CGST + ₹25 SGST).

No reimbursement for late fees paid: It's crucial to remember that this plan does not reimburse previously paid late fees.

How to Get the Waiver

In order to take advantage of this program, taxpayers need to do the following:

1. Find Outstanding Returns: Find out which GSTR-9 and/or GSTR-9C returns are still outstanding for the relevant fiscal years.
2. Obtain Necessary Information: Compile all the data and paperwork needed to file the returns. This comprises audited financial accounts, input tax credit information, sales data, and purchase data.
3. Get Returns Ready and File Them: Before March 31st, 2025, precisely prepare the GSTR-9 and GSTR-9C forms and submit them via the GST site.
4. Assure Adherence: To prevent any future inconsistencies, double-check all the information and make sure the returns are submitted accurately.

The Significance of This Scheme

• Decreased Financial Burden: For taxpayers who have struggled to timely file their yearly returns, the program considerably lessens their financial burden.
• Better Compliance: It motivates taxpayers to file unfiled returns and regularize their GST compliance.
• Streamlined Processes: The updated late fee schedule streamlines the procedure and clarifies the relevant charges.

Important Points to Remember

• Accuracy is Key: Even with the lower late costs, accuracy is still crucial when it comes to submitting taxes. Penalties and further scrutiny may result from errors in the returns.
• Time Management: Don't put off filing your taxes until the last minute. In order to prevent last-minute rushes and any mistakes, begin the procedure far in advance.
• Expert Support: Consult a knowledgeable tax expert if you have any questions concerning any step of the filing procedure.

In Summary

For taxpayers, the GSTR-9/9C late charge waiver program is a huge comfort. Utilizing this program, taxpayers may guarantee compliance with GST requirements and avoid significant late fines by submitting any outstanding returns by March 31st, 2025. To take advantage of this chance, quick and precise action is essential.

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