Failure to file the GST annual return (GSTR-9) by the due date attracts a late fee of ₹200 per day (₹100 under CGST + ₹100 under SGST Act), capped at a maximum of 0.5% of the taxpayer's turnover in the state or union territory. Interest at 18% per annum is also applicable on delayed payments.
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.
In GST, if any person or business violates any provision prescribed in the GST Act or rules, would also be subject to penalty. 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.
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.
The penalty for late GST/HST filing is 1% of any amount you owe, plus an extra 0.25% for each full month your payment is overdue, up to 12 months. If the CRA issues a formal demand to file and you ignore it, they add another $250 penalty even if you don't owe any tax.
Filing GST return online is compulsory and assists the government for all registered businesses. GST returns help the government track tax liabilities while allowing businesses to claim input tax credits (ITC). Returns must be filed regularly on the GST portal, ensuring compliance and smooth tax management.
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.
Penalty for non-compliance
Failure to file CIT returns attracts a penalty of NGN 25,000 for the first month and NGN 5,000 for each subsequent month of default.
The due date for filing Form GSTR-9 for a particular financial year is 31st December of subsequent financial year or as extended by Government through notification from time to time.
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.
7. Final Checklist to Avoid GST Penalties in 2025
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.
Legal Waivers/Reductions: Sections 73 and 74 of the CGST Act give discretionary powers to the authorities to waive penalty in case the tax payable is paid before assessment, or the default was not intentional and due to real causes.
For GST, the CRA filing and payment deadline is 3 months after your fiscal year end. For GST filed and paid annually, the CRA payment deadline is April 30 and the filing deadline is June 15. For GST filed and paid monthly and quarterly, the CRA filing and payment deadline is one month after the reporting period.
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.
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).
What happens if I don't file GST returns? If you don't file the GST returns, then late fees will apply for every day of default that occurs. Further, if there is any tax due, then interest will apply at the rate of 18% per annum on the tax liability.
Maximum Late Fee for Annual Return (GSTR-9)
The late fee is capped at 0.25% of the taxpayer's turnover in the state or union territory per Act (i.e., up to 0.5% total for both CGST and SGST). For example, if turnover is ₹1 crore, the maximum late fee can be up to ₹50,000 (₹25,000 under CGST and ₹25,000 under SGST).
50% (0.25% under the CGST Law + 0.25% under the SGST / UTGST Law) of turnover in the State/UT. These provisions apply to the filing of GSTR-9; however, no specific requirements apply to GSTR-9C, and hence, the filing of GSTR-9 and non-filing of GSTR-9C could be subject to a general penalty of Rs 25,000.
If you don't file an annual report, your business risks late fees, suspension of its right to do business, and eventually administrative dissolution (being shut down by the state), which can lead to losing your liability protection, making it hard to get financing or contracts, and having your business name taken by others. Reinstatement is often possible but involves back payments, penalties, and extra paperwork, according to NCH inc..
If you owe taxes, a delay in filing may result in a "failure to file" penalty, also known as the “late filing” penalty, and interest charges. The longer you delay, the larger these charges grow. It may result in penalty and interest charges that could increase your tax bill by 25 percent or more. Losing your refund.
Penalty Charge
More than 15 days and up to 30 days (Sections 93, 139 and 157) and up to 30 days in remaining forms. The penalty for not filing a company's annual return (Form MGT-7 and Form AOC-4) is set to be increased to Rs. 200 per day.
The penalty amount you will be charged for not filing electronically if you are required to is: $100 for the first time. $250 for each subsequent return you do not file electronically.
Yes, every GST-registered taxpayer whose annual turnover is more than Rs.2 crore must file GSTR-9 annually. It is optional for the rest of the taxpayers. Is GSTR 9 mandatory for less than Rs.2 crore? No, the department made GSTR-9 optional for businesses with less than Rs.2 crore to ease the compliance burden.
If you are registered for GST/HST, you must file a GST/HST return for each reporting period.