Under the authority granted by Section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), and following the recommendations made by the GST Council, the Central Government has issued a notification to waive the late fees outlined in Section 47 of the CGST Act.

This waiver applies specifically to the return required to be filed u/s 44 of the CGST Act for the financial years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23.

The waiver covers late fees that exceed the amount due under Section 47 of the CGST Act up to the date on which FORM GSTR-9 for the relevant financial year is filed. It applies to registered taxpayers who were obligated to submit the reconciliation statement in FORM GSTR-9C along with their annual return in FORM GSTR-9 but failed to do so by the prescribed due date. These taxpayers must now file FORM GSTR-9C by 31^st March 2025, to benefit from the waiver.

The notification specifies that the late fee waiver applies only to the excess fees beyond what would be due under Section 47 of the CGST Act, up until the submission date of FORM GSTR-9 for the respective financial year. This means taxpayers will not be required to pay the full late fee amount for delayed filings but will still need to meet the original filing requirements.

However, it is crucial to note that the waiver does not extend to any refund for late fees that have already been paid by taxpayers for the delayed submission of FORM GSTR-9C. This means that if taxpayers have already cleared the late fee amount, they will not be entitled to any reimbursement or reduction of those fees, even after the waiver is granted.

The government’s decision to offer this late fee waiver aims to encourage taxpayers to file the pending FORM GSTR-9C forms, thereby reducing the overall compliance burden and helping taxpayers stay in line with GST regulations.

It is hoped that this measure will incentivize taxpayers to complete the filing process within the extended deadline of 31^st March 2025, and avoid further penalties or legal complications. Taxpayers are strongly advised to take advantage of this relief by submitting their pending reconciliation statements within the stipulated timeline to ensure compliance and prevent future issues.

Government Waives Late Fees for Pending GSTR-9C Filings

To download official notification, click here.

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post Government Waives Late Fees for Pending GSTR-9C Filings: Deadline Extended to 31st March 2025 appeared first on Tax Unplug.

The Petitioner received a demand notice for payment of INR 10,85,557, including penalties. The decision was made by the Proper Office in accordance with Section 73 of the Central Goods and Services Tax Act, 2017 (commonly referred to as the CGST Act).

The Ld. Counsel for the petitioner argued that after closing the business in 2020, the petitioner did not check the portal. The Show Cause Notice (SCN) was only posted on the portal and not communicated to the petitioner through other methods, leaving the petitioner unaware of any initiated proceedings. As a result, the petitioner was unable to provide a response to the SCN.

The argued order acknowledged that a demand was imposed ex-parte due to the taxpayer’s failure to respond or attend a “Personal Hearing”. Despite being given additional opportunities and reminders, the taxpayer did not provide a defense, leading to the ex-parte decision in accordance with the CGST/DGST Act and rules. The Proper Officer noted that the taxpayer did not submit a response online or appear in person or through a representative.

The Hon’ble High Court held that the petitioner was unable to access the portal due to business closure, leading to their inability to respond to the Show Cause Notice. The impugned order was passed solely based on this failure. The petitioner should be given a chance to respond, and the matter should be sent back to the Proper Officer for re-adjudication. As a result, the order dated 21.12.2023 was revoked, and the Show Cause Notice was reinstated on the record of the Adjudicating Authority.

Accordingly, the High Court instructed the Petitioner to file another reply to the Show Cause Notice within two weeks. Thereafter, the Proper Officer shall re-adjudicate the Show Cause Notice after giving an opportunity of personal hearing and shall pass a fresh speaking order in accordance with law within the period prescribed under Section 75 (3) of the Act.

M/S. SWASTIK ENTERPRISES v. UNION OF INDIA [W.P.(C) 5938/2024 & CM APPL. 24687/2024]

To download official order, click here.

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post The Delhi HC ordered a re-examination of the case as the taxpayer was not aware of the SCN due to the inability to access the GST portal after ceasing operations appeared first on Tax Unplug.