Madras HC Upholds both GST Late Fee & Penalty for Non-Filing of GSTR-9  

Tvl. KPK Fuel Services Vs State Tax officer (Madras High Court)

The Madras High Court considered a challenge to an order dated 13.12.2023 imposing late fee and penalty for failure to file the annual return in Form GSTR-9. The petitioner argued that the time limit for filing the annual return for the financial year 2017-18 was three years from the due date of furnishing the return and contended that the impugned order incorrectly recorded that the return had been filed on 07.12.2022. It was further argued that a late fee could be levied only for belated filing and not for non-filing of returns. Referring to Section 47(2) of the CGST Act, 2017, the Court held that late fee is leviable on any registered person who fails to furnish the annual return by the due date and continues until the failure persists, subject to the prescribed maximum limit. The Court also examined the imposition of penalty under Section 125 and held that, since no separate penalty is prescribed under the GST statutes for failure to file the annual return, penalty under Section 125 could validly be imposed. Concluding that the petitioner’s contentions were untenable and finding no infirmity in the impugned order, the Court dismissed the writ petition without costs.