The Ministry of Finance has released a notice pertinent to Goods and Service Tax (GST) registered taxpayers who did not submit their annual reconciliation statement using the GSTR-9C form. According to the circular, eligible GST taxpayers now have the chance to eliminate any outstanding late fees for filing GSTR-9C for the fiscal years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, or 2022-23. However, there is a stipulation: taxpayers must file any overdue GSTR-9C by March 31, 2025, to benefit from the late fee waiver.
Historically, the deadline to submit both GSTR-9 and GSTR-9C for any financial year has been December 31. While it’s possible to file the GSTR-9 annual return independently of the GSTR-9C return, the law advises that both returns should be submitted together. This notification specifically pertains to taxpayers who did not adhere to this recommendation and omitted filing GSTR-9C.
The notification states: “The Central Government, based on the recommendations of the Council, hereby waives the late fees owed for financial years 2017-18, 2019-20, or any fees exceeding the late fee under section 47, until the submission date of FORM GSTR-9 for the specified financial year. This applies to a specific class of registered persons required to submit a reconciliation statement in FORM GSTR-9C along with their annual return in FORM GSTR-9 for that financial year but who failed to do so. These taxpayers must ensure that the GSTR-9C is submitted by March 31, 2025. Please note that no refunds will be issued for late fees already paid concerning the delayed submission of FORM GSTR-9C for these financial years.
Final Chance to Prevent GST Scrutiny: File Outstanding GSTR-9C by March 31, 2025
Should a GST registered individual neglect to take advantage of this final opportunity to file their GSTR-9C return, especially after submitting year-wise GSTR-1 and GSTR-3B returns with necessary reconciliations against GSTR-2A/GSTR-2B, the authorities may pursue action during the scrutiny of GST Returns, GST Audits, Inspections & Searches. This may lead to proceedings concerning any discrepancies found in outward supplies and the associated tax liabilities, GST credits in relation to purchases involving reverse charge mechanism (RCM), and potential issuance of a show cause notice under section 73 (for non-fraud cases) or section 74 (for fraudulent cases). Hence, the significance of GSTR-9C cannot be overstated. It serves as a self-certified reconciliation statement linked with the annual return (GSTR-9), enabling GST authorities to ascertain the accuracy of the GST returns filed by taxpayers. Non-filing of GSTR-9C might be interpreted as an intention to conceal, misstate, or fraudulently evade taxes.
