GST Update: Late Fee Waiver for GSTR-9C for FY 2017-18 to FY 2022-23

Waiver of Late Fee for Filing FORM GSTR-9C: Notification No. 08/2025

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 08/2025 – Central Tax, dated 23rd January 2025, under Section 128 of the Central Goods and Services Tax Act, 2017 (CGST Act). This notification provides a late fee waiver for delayed filing of FORM GSTR-9C (Reconciliation Statement) for specific financial years, subject to certain conditions.

Late Fee Waiver

As per the notification, the late fee under Section 47 of the CGST Act for delayed filing of FORM GSTR-9C has been waived for the following financial years:

2017-18
2018-19
2019-20
2020-21
2021-22
2022-23

Conditions for Availing the Waiver:

The taxpayer was required to file FORM GSTR-9C along with the annual return (FORM GSTR-9) but failed to do so by the prescribed due date.
FORM GSTR-9C must be furnished on or before 31st March 2025 to qualify for the waiver.

Scope of the Waiver

The waiver applies to the portion of late fees exceeding the amount payable under Section 47 of the CGST Act, up to the date of filing FORM GSTR-9C.
Late fees already paid before the issuance of this notification are not refundable.

Deadline for Compliance

To avail of the late fee waiver, taxpayers must file FORM GSTR-9C for the applicable financial years on or before 31st March 2025.

Benefits for Taxpayers

The notification provides the following key benefits:

Financial Relief: Reduces the financial burden on taxpayers by waiving substantial late fees for delayed compliance.
Encouragement for Compliance: Extends the timeline to enable taxpayers to regularize their filings without incurring significant penalties.
Streamlined Filing: Facilitates smoother compliance processes, reducing litigation or disputes related to late filings.

Summary of Late Fee Waiver

Aspect	Details
Applicable Financial Years	2017-18, 2018-19, 2019-20, 2020-21, 2021-22, 2022-23
Return Forms	FORM GSTR-9 (Annual Return) and FORM GSTR-9C (Reconciliation Statement)
Condition	FORM GSTR-9C must be filed after FORM GSTR-9 but on or before 31st March 2025.
Relief Provided	Waiver of late fee exceeding the amount payable under Section 47 of the CGST Act.
Refund Clause	No refund for late fees already paid for FORM GSTR-9C.
Deadline for Compliance	31st March 2025

Example

A taxpayer was required to file FORM GSTR-9C for FY 2019-20 but missed filing it along with the annual return (FORM GSTR-9). If the taxpayer files FORM GSTR-9C on or before 31st March 2025, they will not be liable for late fees exceeding the amount specified under Section 47. However, if they had already paid a late fee prior to this notification, they cannot claim a refund for that amount.

This notification aims to provide taxpayers with an opportunity to regularize past filings, ensuring compliance and reducing unnecessary financial and legal burdens.