Failure to file GSTR-9 (annual return) and GSTR-9C (reconciliation statement) by the due date (usually December 31) results in daily late fees of ₹200 (₹100 CGST + ₹100 SGST). Penalties are capped at 0.5% of the turnover (0.25% per Act). Non-compliance can lead to official notices, audits, and potential suspension or cancellation of GST registration.
Late fees ₹200 (₹100 CGST + ₹100 UT/SGST) per day of delay, subject to a maximum cap of an amount at ₹0.50% (0.25% + 0.25%) of itsd turnover. No specific provision, hence, subject to a general penalty of ₹25,000. To be filed on the GST portal. To be filed on the GST portal at the time of or after filing GSTR 9.
Failing to file GSTR-9 on time results in financial penalties of ₹200 per day, capped at 0.25% of annual turnover, disrupting cash flow for businesses. Non-compliance with GSTR-9 can lead to denial of input tax credits, audits, legal risks, and even suspension or cancellation of GST registration.
If you (a regular taxpayer) does not file a return for a continuous period of six months, then the GST Officer may cancel the GST registration of such person. Before cancellation, the officer will issue a Notice seeking your clarification.
Show Cause Notices (SCNs): If a taxpayer has received an SCN for late filing of GSTR-9C, they can request cancellation of the notice by completing the filing before the deadline.
Who is required to file GSTR 9C? Every registered person under GST whose turnover during a financial year exceeds the prescribed limit of Rs.5 crore must file a self-certified reconciliation statement in Form GSTR-9C. This statement must be filed by every GST-registered taxpayer, i.e. every GSTIN.
The recipient is required to respond to the notice within the specified time frame, which is usually 30 days. If the recipient fails to respond or provide a satisfactory explanation, the GST authorities may proceed to take further action, such as imposing a penalty or initiating legal proceedings.
Therefore, upon non –filing of GST returns or missing out the GST due dates, the GST law prescribes a general penalty. The maximum penalty that may be imposed is Rs. 5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty.
You face a penalty when you file your GST/HST return late if you owe money. The penalty equals 1% of your unpaid amount plus 0.25% of that amount for each full month your return is late. The maximum penalty period is 12 months. After that, no additional monthly charges apply.
Scope of the Scheme: The waiver scheme applies to only those taxpayers who have failed to file GSTR-9 earlier. To avail benefits of this scheme, taxpayers have to file the return before March 31, 2025. Already Paid Late Fees: No refunds will be issued if the taxpayer has already filed the return with late payment fees.
The penalty for not filing financial statements is governed by Section 137(3). The company faces a penalty of ₹10,000, plus ₹100 for each day of continuing default (max ₹2,00,000).
When can the GSTIN get suspended? A taxpayer's GST registration or GSTIN can be suspended when they fail to file their GST returns for six consecutive months as monthly filers and for two consecutive quarters as quarterly filers.
Late filing penalties for goods and services tax (GST)
There is a late filing penalty of $50 if you're on the payments basis. There is a $250 penalty for late filing on the hybrid or invoice basis. These penalties are usually due on the 28th day of the month after the return was due.
GST Return Fees: Rs. 1,000 to Rs. 3,000 per month. Professional Filing Services: Rs.
As per Section 47(2) of CGST Act, 2017, any registered person who fails to furnish Annual Return by the due date shall be liable to pay a late fee of R 100/- per day subject to maximum of 0.25% of his turnover in the State or Union Territory. Similar provision exist in respective SGST Acts, also.
An offender not paying tax or making short-payments has to pay a penalty of 10% of the tax amount due, subject to a minimum of Rs. 10,000. Therefore, the penalty will be high at 100% of the tax amount when the offender has evaded i.e., where there is a deliberate fraud.
CGST and SGST late fee is ₹50 per day per return, with a limit of ₹5,000 per type of return. 4. Can you waive or reduce the GST penalty? Yes, you can waive or reduce a GST default penalty in case of actual default on the basis of reasonable causes and for first-time offenders.
Monthly GST Returns
Businesses with a turnover above the prescribed limit must file returns every month. The GST return turnover limit is ₹5 crore in the preceding financial year. If your turnover crosses this mark, you're required to file both GSTR-1 and GSTR-3B monthly.
Late submission penalty. A late submission penalty of $200 is imposed immediately when the GST return is not filed by the due date. A further penalty of $200 is imposed for every completed month that the GST F5/F8 return remains outstanding. The maximum penalty amount for each outstanding F5/F8 return is $10,000.
According to a report from the U.S. PIRG Education Fund, about 90 percent of first-time late fees can be waived if you simply ask. Even if you've missed payments more than once, some issuers still offer goodwill adjustments.
1. Login into GST portal: Navigate to > Services > User Services > My Applications. 2. On Navigating to 'My Applications' page, the taxpayer has to select 'Apply for Waiver Scheme under Section 128A' option under 'Application type' dropdown.
A late charge fee is a penalty amount you charge when a customer fails to pay by the invoice due date. Unlike interest fees that compound over time, these fees are added to the unpaid balance for each period payment remains overdue.
In case, the applicant does not reply to the notice within the stipulated time or the Tax Official is not satisfied with the reply filed by the applicant, he may proceed further to issue Refund Rejection/ Sanction Order in Form GST RFD-06 for sanctioning/rejecting the amount of refund in whole or part.
The bad news is that there can be consequences if you refuse or fail to give the notice that you are required to give per your contract. Those negative consequences fall into two buckets. One is that, if you don't work the notice period, you could, in theory, be sued for breach of contract.
Taxpayers holding GST registration are required to maintain transparency in all filings, payments, and declarations. Ignoring an SCN can lead to severe consequences such as cancellation of registration, heavy fines, or even prosecution.