Failure to file the GSTR-9 annual return by the due date attracts a late fee of ₹200 per day (₹100 CGST + ₹100 SGST). This fee is capped at a maximum of 0.25% of the taxpayer's annual turnover in the respective state or union territory. Interest at 18% per annum is also payable on any additional tax liabilities identified.
GSTR9 Late Fee and Penalty
As per section 47, late fees for not filing the GSTR 9 within the due date is Rs.100 per day, per Act. That means late fees of Rs.100 under CGST and Rs.100 under SGST are applicable in case of delay. Accordingly, the total liability is Rs.200 per day of default.
The penalty for late filing of GSTR-9C includes a late fee of Rs. 200 per day (Rs. 100 each for CGST and SGST) up to a maximum of 0.5% of the taxpayer's turnover in the relevant state or union territory. Additionally, failure to file may attract further penalties and interest as per GST regulations.
Failure to file penalties
If you file your return late, a penalty applies. The penalty is 5% of the unpaid tax that is due on the filing deadline, plus 1% of this unpaid tax for each complete month that the return is late, up to a maximum of 12 months.
GSTR-9 annual return filling is mandatory for every taxpayer registered under GST. Certain categories are exempted from this filing, including casual taxpayers, non-resident taxpayers, Input Service Distributors, and those who deduct or collect tax under Section 51 or Section 52.
Is it mandatory to file Form GSTR-9? Yes, it's mandatory to file Form GSTR-9 for normal taxpayers. It may, however, be made optional for taxpayers having AATO up to a certain threshold, from time to time.
“GST amnesty scheme for GSTR-9 delayed filing- Late fee in excess of Rs. 20,000 (Rs. 10,000 each CGST and SGST) is waived of for delayed filing of GSTR9 for years 2017-18 up to 2021-22 if filed between 1st April 2023 to 30th June 2023.
You can request a waiver even if you haven't paid all the tax you owe yet, but any failure-to-pay penalty will continue to increase until the tax is completely paid.
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.
If your return is over 60 days late, there's also a minimum penalty for late filing; it's the lesser of $525 (for tax returns required to be filed in 2026) or 100 percent of the tax owed. See Topic no. 304 for information about extensions of time to file if you can't file on time.
Due Dates & Penalties for GSTR-9 Annual Return
In the case of the Financial Year 2024-25, the last day to submit Form GSTR-9 is December 31st, 2025, unless the Central Board of Indirect Taxes and Customs (CBIC) announces an extension of the deadline by issuing an official notification.
Common Reasons for Wrong Data in GSTR-9
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.
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.
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.
The GST law requires that every claim for refund is to be filed within 2 years from the relevant date.
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.
For NRIs who have not yet filed their Income Tax Returns for FY 2024–25 (AY 2025–26), the last opportunity to file a belated return is 31 December 2025. Filing after the due date attracts a late fee under section 234F and may result in the loss of certain tax benefits.
Ways you can avoid late fees
Fires, natural disasters or civil disturbances. Inability to get records. Death, serious illness or unavoidable absence of the taxpayer or immediate family. System issues that delayed a timely electronic filing or payment.
The IRS 7-year rule primarily applies to keeping records for claiming a deduction for bad debts or losses from worthless securities, allowing a longer period to file for a credit or refund, but it's not a universal audit limit; it's often a recommended safe buffer for general record-keeping, with the standard IRS audit period usually being 3 years, extending to 6 years for substantial income omission (over 25%) or foreign income issues, and indefinitely for fraud.
If you filed your tax return late due to reasons outside of your control, you might consider appealing the late filing penalty on the grounds of having a 'reasonable excuse'. You will normally need to submit your appeal within 30 days of receiving the penalty notice.
Businesses or individuals who have pending GST returns or appeals, such as those who missed filing returns for certain tax periods, generally qualify for the GST Amnesty Scheme. Yes, the GST Amnesty Scheme may apply to GSTR-9, the annual return filing.
To avail of the GST Amnesty Scheme under Section 128A, taxpayers must: Pay the full principal tax demand by March 31, 2025. Apply for the scheme by June 30, 2025.
Rule 42: Manner of determination of input tax credit in respect of inputs or input services and reversal thereof. CGST Rule 42 deals with the reversal of input tax credit on non-payment of the supplier within 180 days from the date of the invoice.