The wait of tax payers , professionals for due date extension of filing GSTR-9 (Annual Return) and 9-C (Audit Certificate / Reconciliation Statement) required to be as per sub-section (1) and (2) of Section 44 of the CGST Act, 2017, seems to be not ending despite reaching on the last date of filing the same i.e. September, 30, 2020 (date extended vide Notification No. 41/2020-Central Tax dated 5th May, 2020).
Although it is expected that one month extension in due date is on cards, however till Notification towards same is issued , it cannot be taken for granted.
In this article we will discuss about the implications in case the due date is not extended, due to which taxpayers / professionals miss the bus and there is delay in filing of GSTR-9 and 9-C. Before discussing about late fee lets discuss on which persons are required to file these Forms.
Requirement to file GSTR-9 / 9-C for FY 2018-19 at a glance
| Aggregate Turnover | GSTR 9 | GSTR 9C |
|---|---|---|
| Up to 2 Cr | Optional * | N/A |
| More than 2Cr. – 5 Cr | Filling is mandatory | Optional ** |
| More than 5Cr | Filling is mandatory | Filling is mandatory |
* Notification No. 47/2019 – Central Tax dated 9th October, 2019
** Amendment in Rule 80 of CGST Rules,2017 vide Notification No.16/2020 – Central Tax dated 23rd March, 2020
Accordingly GSTR-9 filing for the FY 2018-19 is mandatory for taxpayers having aggregate turnover exceeding Rs 2 Crore whereas GSTR 9-C for same financial year is required to be filed by taxpayers having aggregate turnover more than Rs 5 Crore.
Late fee / penalty applicable in case of delay in filing of GSTR-9 and 9C
As per Section 47(2) of CGST Act,2017, any registered person who fails to furnish the return required under section 44 (i.e. annual return in GSTR-9) by the due date shall be liable to pay a late fee of Rs 100/- for every day during which such failure continues subject to a maximum of an amount calculated at a 0.25% of his turnover in the State or Union territory.
After adding up the similar late fee under SGST Act(s) the total late fee payable for delayed filing of GSTR-9 comes to Rs 200 per day ( Rs 100 CGST + Rs 100 SGST) subject to maximum of 0.50% (0.25% for CGST and SGST each) of turnover in the State or Union territory.
As the late fee under Section 47(2) is applicable only in respect of return i.e. GSTR-9 and not specifically for filing of GSTR-9C. Thus delayed filing of GSTR-9C will not be subject to late fee rather would be subject to the maximum penalty of Rs 25,000 under Section 125 of the CGST Act, 2017. Considering similar penalty under SGST Act, total maximum penalty would be Rs 50,000/- for delayed filing of GSTR-9C.
Concluding Remarks:
Although we still believe that there should be one month extension in due date of filing of GSTR-9 and 9-C today, however if god forbids, same is not extended what would be the implications on account of late fee / penalty has been discussed in the article for kind information of our readers.
Taxpayers / professionals are suggested not to rush to file the returns at eleventh hour without complete checking, in case extension doesn’t come today. If in such cases the returns are filed under hue and cry to save late fee / penalty there would be chances of errors in the figures disclosed in the GSTR-9 / 9-C which would be a serious issue considering revision in these forms is not possible.
We suggest that in case GSTR-9 and 9-C is still under finalization , the tax payers and GST Auditors should concentrate on its correctness and file these after complete checking is made, even if you need to shell out some late fee / penalty. Further in case extension comes we should not again go to sleep and rather commit ourselves to complete the process within first week of October.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
