The Goods and Services Tax Network (GSTN) has implemented the reduction of late fees for late filing of pending Goods and Services Tax Returns – GSTR-9, GSTR-9C and GSTR-10 in the GST Portal.
The Central Government, by the Notification No. 02-07/2023, has notified many amendments to the Central Goods and Services Tax Act, 2017 and Central Goods and Services Tax Rules, 2017, lessening the GST compliance burden on the taxpayers.
The Central Government, by the Notification Nos. 02-07/2023, had notified many amendments to the Central Goods and Services Tax Act, 2017 and Central Goods and Services Tax Rules, 2017, lessening the GST compliance burden on the taxpayers.
The late fee for GSTR-9 filed late between April 1 to June 30, 2023, will be restricted to Rs. 20,000 for FY 2017-18 to 2021-22.
From FY 2022-23 onwards, turnover based late fees for GSTR-9 will be made applicable:
Turnover up to 5 crores: Rs. 50 per day, maximum of 0.04% of turnover
Turnover between 5-20 crores: Rs. 100 per day, maximum of 0.04% of turnover
Turnover above 20 crores: Rs. 200 per day, maximum of 0.5% of turnover
Late fee for filing GSTR-10 between April 1 to June 30, 2023, will be restricted to Rs. 1,000.
In addition, the department had also notified that the assessment proceedings initiated by the tax authorities under the Goods and Services Tax (GST) Act will be deemed to have been withdrawn if the taxpayer files the pending GST returns GSTR-10 and GSTR-3B.
If a taxpayer has pending assessment proceedings under the Goods and Services Tax Act, and has not filed the GSTR-10 and GSTR-3B returns, they can now file the returns to get the assessment proceedings deemed withdrawn. This means that the proceedings will be considered as null and void, and the taxpayer will not be liable to pay any tax or penalty under the proceedings.
Annual Return (GSTR-9/9C)
Form GSTR-9 is an annual return to be filed once, for each financial year, by the registered taxpayers who were regular taxpayers, including SEZ units and SEZ developers. The taxpayers are required to furnish details of purchases, sales, input tax credit or refund claimed or demand created etc. in this return.
GST Late Fees have been capped to Rs. 20000/- (CGST + SGST) for filing pending Annual Return (GSTR-9/9C) for Financial Years from 2017-18 to 2021-22, if the same is filed between April 01, 2023 to June 30, 2023.
Final Return (GSTR-10)
It is mandatory to file Form GSTR-10 for the taxpayers who are required to furnish return under Section 39(1), once registration has been cancelled and/or the cancellation order is issued.
Late Fees reduction for pending Final Return GSTR-10 maximum late fees has been now capped at Rs. 1000/- (CGST + SGST), if the same is filed between April 01, 2023 to June 30, 2023.
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