246/03/2025-GST — Clarification on applicability of late fee for delay in furnishing of FORM GSTR-9C
Summary
The CBIC has issued Circular 246/03/2025-GST to clarify the applicability of late fees for delays in filing FORM GSTR-9C, which is the reconciliation statement that taxpayers with an annual turnover exceeding ₹5 crore must submit along with their annual return, GSTR-9. This circular addresses concerns about whether late fees are automatically levied for delays in GSTR-9C filings.
Essentially, the circular clarifies that late fees under Section 47 of the CGST Act will not be automatically imposed solely for the delayed filing of GSTR-9C. Instead, assessing officers will consider the reasons for the delay on a case-by-case basis. If the delay is due to genuine difficulties or reasonable cause, such as technical glitches on the GST portal or genuine interpretational issues, late fees may be waived or reduced. However, if the delay is deemed willful or without reasonable cause, late fees may still be applicable.
This affects all GST registered persons whose aggregate turnover exceeds ₹5 crore in a financial year. These taxpayers must ensure that if there are delays in filing GSTR-9C, they should be prepared to justify the delay to the assessing officer and provide documentation supporting the reasons for the delay. While there is no specific deadline mentioned for providing justifications, it is best to submit the GSTR-9C as soon as possible and be prepared to explain any delays promptly if questioned by the tax authorities. The circular aims to provide a more lenient and reasoned approach to late fee penalties for GSTR-9C.
Key Changes
| Change | Impact |
|---|---|
| Late fee is not applicable for delays in furnishing Form GSTR-9C (Reconciliation Statement). | Taxpayers are relieved from paying late fees for delays in submitting GSTR-9C, reducing their compliance burden and potential financial penalties. |
| The clarification addresses ambiguity surrounding late fee applicability for GSTR-9C. | Removes confusion and provides certainty regarding late fee liability for this particular form, ensuring uniform implementation of GST law. |
| The notification is applicable retrospectively. | Taxpayers who have already paid late fees for delayed GSTR-9C filing may be eligible for a refund or adjustment, depending on the specific circumstances and subsequent guidelines. |