Late fees for GSTR 9C waived for FY 2017-18 to FY 2022-23!

The Ministry of Finance has waived excessive late fees for delayed filing of GSTR-9C for FY 2017-18 to 2022-23, provided the filing is completed by March 31, 2025, as per Notification No. 08/2025 - Central Tax. This waiver addresses challenges faced by taxpayers during GST's initial years when confusion around compliance and frequent regulatory changes led to delays in filing. GSTR-9C, a reconciliation statement, was particularly challenging for businesses transitioning into GST. The move offers relief but does not provide refunds for late fees already paid.

Let’s understand the changes!

Notification No. 08/2025- Central Tax dated 23.01.2025

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

New Delhi: 23.01.2025

NOTIFICATION No. 08/2025 - CENTRAL TAX

S.O. 419(E).- In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby waives the amount of late fee referred to in section 47 of the said Act in respect of the return to be furnished under section 44 of the said Act, for the financial years 2017-18 or 2018-19 or 2019-20 or 2020-21 or 2021-22 or 2022-23, which is more than the late fee payable under section 47 of the said Act up to the date of furnishing of FORM GSTR-9 for the said financial year, for the class of registered persons, who were required to furnish reconciliation statement in FORM GSTR-9C along with the annual return in FORM GSTR-9 for the said financial year but failed to furnish the same along with the said return in FORM GSTR-9, and furnish the said statement in FORM GSTR-9C, subsequently on or before the 31st March 2025:

Provided that no refund of late fee already paid in respect of delayed furnishing of FORM GSTR-9C for the said financial years shall be available.

[F. No. CBIC-20001/15/2024-GST]

RAUSHAN KUMAR, Under Secy.

Key Highlights

• Late Fee Waiver for GSTR-9C: Excess late fees under Section 47 of the CGST Act, 2017, for delayed filing of FORM GSTR-9C, are waived for financial years 2017-18 to 2022-23.
• Amount of waiver: The waiver amount is the amount of the late fee charged for the period after the date of filing from GSTR 9.
• Filing Deadline: The waiver is applicable if the pending GSTR-9C is filed on or before March 31, 2025.
• Eligibility: This applies to registered persons required to furnish the reconciliation statement (GSTR-9C) and the annual return (GSTR-9) but who failed to file GSTR-9C on time.
• No Refunds: Late fees already paid for delayed filing of GSTR-9C will not be refunded under this notification.

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Conclusion

In conclusion, Notification No. 08/2025 - Central Tax reflects the government’s acknowledgment of the challenges faced by taxpayers during the early years of GST implementation. Waiving excessive late fees for delayed filing of GSTR-9C offers much-needed relief to businesses that struggled with compliance due to the complexities of the reconciliation process and evolving regulations. While the waiver encourages timely compliance by setting a deadline of March 31, 2025, the decision to exclude refunds for fees already paid ensures a balanced approach.