GST Council provides relief to Taxpayers by waiving Late Fees for GSTR-9C Filing by 31st March 2025

Union Finance Minister Nirmala Sitharaman presided over the 55th meeting of the GST Council (December 21, 2024) in Jaisalmer, Rajasthan. The GST Council proposes removing the late fee for filing GSTR-9C by March 31, 2025, in the event of delayed FORM GSTR-9C furnishing from 2017-18 to 2022-23.

The GST Council suggested issuing a notification under Section 128 of the CGST Act, 2017, to waive the amount of late fee for delayed filing of FORM GSTR-9C, which is greater than the amount of late fee payable until the date of filing of FORM GSTR-9 for the said financial years, provided the FORM GSTR-9C is filed on or before March 31, 2025.

Form GSTR-9C is a reconciliation statement that compares the taxpayer’s audited financial records to their annual return (GSTR-9). Taxpayers with more than Rs.5 crores in annual revenue in a financial year are required to file. It eliminates discrepancies between reported and audited financials and ensures that tax declarations are correct and transparent.

If the government follows the GST Council’s recommendations, it may eliminate late fees for GSTR-9C filing delays by issuing a notification. A waiver could be given under specific conditions or for a set period of time. Generally applicable in circumstances where taxpayers face real obstacles, such as operational challenges, natural calamities, or errors in the system.

Section 128 of the CGST Act, 2017 waives late fees for filing FORM GSTR-9C that are late, helping taxpayers and encouraging compliance. To benefit from these exemptions, taxpayers must file on time and be informed of notices.

The meeting was attended by Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, as well as Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana. Union Minister of State for Finance Shri Pankaj Chaudhary and Revenue Secretary Ajay Seth were also present.