Time to time CBIC tightens and rationalises the GST compliance law for the taxpayers. Non compliances with the GST law can leads to many consequences and litigation with GST Department.
Before proceeding to the consequences of late filing or incorrect filing of GST Annual Return, we know the details about GSTR-9.
GSTR-9 is a consolidated GST Return of every month or quarter of a particular year, it’s require to be file by the every registered person under GST. However GSTN has provided relief to the small business since beginning of the GST era (F.Y 2017-18). Filing of GSTR-9 annual return is optional for the registered dealer whose aggregate annual turnover does not exceed Rs.2 crore.
Along with GSTR-9, a reconciliation statement require to be file by a taxpayer whose aggregate annual turnover exceeds Rs.5 crore.
As per Section 44 of the CGST and SGST Act 2017, an annual return shall be duly filed by a taxpayer on or before 31st of December of the next financial year.
For FY 2022-23 due dates for filing GSTR-9 annual return is 31st December 2023. There are separate annual return forms for the composition dealer and E-commerce operator, GSTR-9A and GSTR-9B respectively.
There is per day late fees penalty for delay in filing GST annual return with a maximum amount of prescribed capping as provided under section 47 of CGST Act. The Department had waived off late fees on filing annual return for the earlier period (from FY 2017-18 to FY 2021-22) through GST amnesty scheme with maximum capping of Rs.20,000/- (Rs.10,000/- under CGST and Rs.10,000/- under SGST/UTGST)
In beginning of the GST same amount of late fees was imposed for the every categories of taxpayers with no capping but by the time to provide relief to the small business, department categories the late fees penalties based on the Aggregate Turnover of the Registered Person with a capping of maximum amount of penalty.
Late fees Penalty for Different categories of registered taxpayer are as under applicable for filing GST annual FY 2022-23 onwards;
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Aggregate Annual Turnover of the Taxpayers
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Late fees penalty
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Upto Rs.5 crore
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Rs.50/- per day (payable Rs.25/- under CGST and RS.25/- under SGST/UTGST)
But maximum of 0.04% of Aggregate Turnover (which is 0.02% payable under CGST and 0.02% under SGST/UTGST)
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Between Rs.5 crore to RS. 20 crore
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Rs.100/- per day (payable Rs.50/- under CGST and RS.50/- under SGST/UTGST)
But maximum of 0.04% of Aggregate Turnover (which is 0.02% payable under CGST and 0.02% under SGST/UTGST)
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Above Rs.20 crore
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Rs.200/- per day (payable Rs.100/- under CGST and RS.100/- under SGST/UTGST)
But maximum of 0.50% of Aggregate Turnover (which is 0.25% payable under CGST and 0.25% under SGST/UTGST)
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So in order to avoid late fees penalty you need to prepare in advance to file annual return with due date.
Along with due date of filing GSTR-9 annual return, it’s also important to keep in mind to file correct information in GST annual return. Because as of now there is no option to rectify GST annual return once you submitted the form, so in that case if you have declared and paid short liability this can lead to GST litigation with the department, on the other if you have shown excess liability or paid excess GST you will not be able to get GST Refund as rectification of Return is not allowed.
However any mistake made in filing GST annual return can be rectified in succeeding period monthly or quarterly return and need to submit clarification if query raised by the department on filing annual return or monthly/quarterly returns.
Disclaimer
Article written above are for the education purpose only, and it does not constitute any legal advice.
