Late Fees On Filing of Annual Return Form GSTR-9 In GST

GST or Goods and Services Tax is one of the significant tax reforms in India, which was implemented on 1st July 2017. GST has replaced all the previous indirect taxes imposed by the Central and State Governments. Under GST, all the businesses have to file the Annual Return Form GSTR-9 every year, and it includes all the details of the supplies made and received during the financial year.

However, if you are a GST registered business owner, you should know that filing the GSTR-9 form before the due date is crucial. Failing to file the form on time may attract late fees and penalties. In this article, we will discuss the consequences of late fees on filing of the Annual Return Form GSTR-9 in GST.

What is GSTR-9?

GSTR-9 is an Annual Return Form that every GST registered business owner has to file every year. The GSTR-9 form includes all the details of the supplies made and received during the financial year. The form also includes the details of Input Tax Credit (ITC) availed, and the output tax liability reconciled for the financial year.

What is the due date for filing GSTR-9?

The deadline for filing GSTR-9 is 31st December of the subsequent financial year. For instance, if you are filing the GSTR-9 form for the financial year 2020-21, the due date for filing the form is 31st December 2021.

What is the late fee for filing GSTR-9?

If you do not file the GSTR-9 form before the due date, you will have to pay a late fee penalty. The late fee penalty for filing GSTR-9 is Rs. 200 per day of delay. However, the maximum late fee penalty is limited to 0.25% of the turnover in the respective State or Union Territory (UT). This means that the maximum late fee penalty you have to pay is Rs. 5000 or 0.25% of the turnover, whichever is lower.

What is the impact of late fees on filing GSTR-9?

The late fees on filing GSTR-9 have a significant impact on your business. Firstly, if you do not file the GSTR-9 form before the due date, you will have to pay a late fee penalty. The late fee penalty can accumulate and become a substantial amount if you delay the filing for an extended period.

Secondly, if you do not file the GSTR-9 form, you may not be able to claim any Input Tax Credit (ITC) that you have missed out on during the financial year. This means that you will have to bear the entire tax liability, and it may lead to a financial burden on your business.

Thirdly, late filing of GSTR-9 can also attract scrutiny from the tax authorities. The tax authorities may initiate an investigation and may levy more penalties and interest charges if they find any discrepancies in your financial records.

How can you avoid late fees on filing GSTR-9?

The best way to avoid late fees on filing GSTR-9 is to file the form before the due date. You should keep track of the due date and ensure that you file the form well in advance. You can also seek the help of a tax professional to ensure that you file the form correctly and on time.

Conclusion:

Thus, filing the GSTR-9 form before the due date is crucial for every GST registered business owner. Failing to file the form on time may attract late fees and penalties, which can become a significant financial burden on your business. Therefore, it is essential to keep track of the due date and file the form on time to avoid any late fees and penalties.