Late fee or penalty if GSTR 9 not filed, Goods and Services Tax - GST

[SUSHIL BANSAL]

Dear experts

plz guide,

for FY 2018-19: taxable supply was 90 lacs & zero rated supply was 130 lacs & client has not filed GSTR-9 till date. Now the case is under GST audit for 5 years (18-19,19-20,20-21,21-22,22-23). They (GST people) so far verbally told that there will be liability of late fees for not filing of GSTR-9. Plz guide how to deal with.

As per my understanding Late fees can be levied only when some compliance is made late. When compliance not at all made then there should not be any late fees. However general penalty u/s 125 may be imposed. Further plz guide whether SCN u/s 73 can be issued for late fee and if it yes then the time limit for issuing SCN u/s 73 has already expired.

Plz guide I am bit confused.

Posts / Replies

[KASTURI SETHI]

Sh.Sushil Bansal Ji,

The subject issue is squarely covered by the Kerala High Court  Judgement.

2024 (4) TMI 993 - KERALA HIGH COURT- ANISHIA CHANDRAKANTH Versus SUPERINTENDENT, CENTRAL TAX & CENTRAL EXCISE, THIRUVANANTHAPURAM

 

[DR.MARIAPPAN GOVINDARAJAN]

You may be directed to file return 9 for all years along with late fee.  Penalty may be imposed.  No SCN can be issued on late fee under Sec.73 which provides the procedure for recovery of tax not levied, not paid, short levied, short paid or erroneously refunded.

[Vel Murugan]

Sir,

The said judgement covers GSTR-9C only. Whether late fee can be demanded ?

[KASTURI SETHI]

GSTR-9C is a part of GSTR-9 return. GSTR 9C is not a return. It is a reconciliation statement. integrated with GSTR-9. If not filed, it means GSTR-9 is incomplete or we may say 'not filed'.. Late fee is automatic in Common Portal. The Common Portal System will not allow to go ahead without payment of late fee.

Under Section 47 late fee applicable to GSTR 9 will also be applicable to GSTR 9C because GSTR 9 will be incomplete without GSTR 9C.

The defaulter is required to pay late fee without SCN.