The GST Council convened for the first time today since the government unveiled its budget for 2023, chaired by the Finance Minister Nirmala Sitaraman. One of the key decisions of the council meeting include rationalization of Late fee for belated filing of annual GST return GSTR-9.
Presently, the late fee is Rs 200 per day (Rs 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual return in FORM GSTR-9.
The Council recommended to rationalize this late fee for delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year up to Rs 20 crore, as below:
Registered persons having an aggregate turnover of up to Rs. 5 crores in the said financial year: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
Registered persons having an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores in the said financial year: Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
It’s important to note that the late fee for belated filing of GST Annual Returns cannot be waived or reduced by the GST authorities, and it must be paid along with the outstanding tax liability.
Therefore, taxpayers are advised to file their GST annual returns within the due date to avoid any late fee charges. Belated filing of returns also lead to cancellation of GST registration, inability to avail ITC and many more complications.
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