The government is waiving the excess late fees for certain taxpayers who delayed submitting their annual return (FORM GSTR-9)

This notification(Notification No 08/2025 Central Tax) by the Central Government, issued under the powers granted by Section 128 of the Central Goods and Services Tax Act, 2017, provides relief related to late fees for specific registered taxpayers who failed to comply with certain filing requirements in the past. Here’s a simplified explanation:

Key Points:

1. Purpose of the Notification:
   • The government is waiving the excess late fees for certain taxpayers who delayed submitting their annual return (FORM GSTR-9) and the accompanying reconciliation statement (FORM GSTR-9C) for specific financial years.
2. Applicability:
   • The waiver applies to the financial years:
     • 2017-18
     • 2018-19
     • 2019-20
     • 2020-21
     • 2021-22
     • 2022-23
   • Specifically, it benefits taxpayers required to file both GSTR-9 and GSTR-9C but who missed the deadline for filing the GSTR-9C reconciliation statement.
3. Conditions for Waiver:
   • Taxpayers who:
     • Filed their FORM GSTR-9 but failed to submit FORM GSTR-9C on time, can still file the GSTR-9C by 31st March 2025.
     • The late fee that exceeds the statutory limit (as per Section 47 of the Act) will be waived for such delayed filings.
4. What Does “Late Fee Waiver” Mean?
   • If a taxpayer delayed submitting GSTR-9C:
     • They were liable to pay a late fee, which accumulates over time.
     • Now, any excess late fee (beyond the statutory limit) is waived, provided they submit the GSTR-9C by 31st March 2025.
5. No Refund of Already Paid Late Fees:
   • If taxpayers have already paid late fees for delayed GSTR-9C filing, they will not get any refund, even if the excess amount is waived for others.
6. Deadline to Avail the Benefit:
   • To benefit from this waiver, taxpayers must furnish the reconciliation statement FORM GSTR-9C by 31st March 2025.

---

Simplified Example:

Imagine you were required to file an annual return (GSTR-9) and a reconciliation statement (GSTR-9C) for the financial year 2019-20. You submitted GSTR-9 but missed filing GSTR-9C. The late fee for GSTR-9C kept piling up.

With this notification:

• The government will reduce your late fee liability to the statutory limit, provided you file GSTR-9C by 31st March 2025.
• However, if you already paid the late fee earlier, you won’t get a refund of the excess amount.

---

Impact of the Notification:

1. Relief for Taxpayers: Reduces financial burden for those who delayed submitting their GSTR-9C.
2. Encouragement to File: Gives an opportunity to taxpayers to comply by filing the required forms by the deadline.
3. No Refund Clause: Ensures no financial loss to the government for fees already paid by taxpayers.

This notification provides a much-needed relief for businesses that faced challenges in complying with reconciliation statement requirements in the past.