Notification 8/2025-Central Tax: Late Fee Waiver Analysis

Summary: Notification No. 8/2025-Central Tax, issued on January 23, 2025, by the CBIC under Section 128 of the CGST Act, 2017, provides a conditional waiver of late fees for delayed filing of Form GSTR-9C. This applies to taxpayers with an annual aggregate turnover exceeding ₹5 crores, who have filed Form GSTR-9 (annual return) but failed to file the reconciliation statement (Form GSTR-9C) by the due date. The waiver restricts the late fee to delays associated with filing Form GSTR-9, provided Form GSTR-9C is submitted by March 31, 2025. The notification clarifies that Form GSTR-9C is not a standalone form but must accompany Form GSTR-9, per Section 44 and Rule 80(3). Taxpayers who delay filing both forms will incur a late fee calculated only on the delay in filing Form GSTR-9. However, late fees already paid before this notification will not be refunded. For example, if a taxpayer delayed filing Form GSTR-9 for 30 days, incurring a ₹3,000 late fee, they can now file Form GSTR-9C by March 31, 2025, without incurring additional late fees. This notification offers relief for taxpayers to regularize their compliance without excessive penalties.

Introduction: I have received requests to prepare a detailed analysis of Notification No.8/2025-Central Tax dt. 23.01.2025, regarding the conditional waiver of late fees for the delayed filing of Form GSTR-9/9C for the financial years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23. Below is my analysis of Notification No.8/2025-Central Tax dt. 23.01.2025.

The CBIC has issued this notification under the provisions of Section 128 of the CGST Act,2017. In my opinion, this notification is intended for taxpayers who have filed Form GSTR-9 but failed to file Form GSTR-9C along with it, within the due date (i.e., 31st December of the following financial year) through the GST Common Portal, as mandated under Section 44 read with Rule 80(1) of the CGST Rules, 2017.

Upon careful reading of Section 44 and Section 47(2) of the CGST Act, 2017, it becomes evident that Form GSTR-9C is not a separate form but a reconciliation statement required to be filed along with Form GSTR-9. Section 47(2) specifically provides for late fees applicable only to the annual return. For taxpayers with an aggregate turnover exceeding Rs. 5 crore, the annual return comprises Form GSTR-9 along with Form GSTR-9C.

According to Notification No.8/2025-Central Tax dt. 23.01.2025, even if there is a delay in the filing of Form GSTR-9C, provided it is filed on or before 31.03.2025, the late fee will be restricted to the number of days of delay in filing Form GSTR-9 for the corresponding financial year.

This notification offers relief by way of a conditional waiver of late fees. In my view, the CBIC issued this notification for taxpayers who had already furnished Form GSTR-9 but failed to submit Form GSTR-9C. For taxpayers with an aggregate turnover exceeding Rs. 5 crore, the annual return includes both Form GSTR-9 and Form GSTR-9C. Filing only Form GSTR-9 without Form GSTR-9C is considered an incomplete return.

Now, the CBIC has provided an opportunity to complete the filing of Form GSTR-9 by submitting Form GSTR-9C without incurring an additional late fee, provided this is done on or before 31.03.2025.

Conditions are as below:

• Who are required to file a reconciliation statement (Certified by a C.A. or C.S. or CWA or Self certification) in case of a registered person whose aggregate turnover in a financial year exceeds Rs.5 Cr ass per Sec. 44 read with Rule 80(3) of the CGST Act,2017, but failed to file “RECONCILITION STATEMENT “ Form GSTR-9C by the due date along with Form GSTR-9. Such tax payers shall be furnished on or before 31^st March,2025.
• The waiver is applicable to the amount of late fees “In excess of the late fee payable under Sec. 47(1), read with Rule 80(3) of the CGST Act,2017, up to the date of Furnishing Form GSTR-9C.
• If any taxpayer already paid late fees before this notification, such taxpayer will not be get refund granted.
• The taxpayer must be filed Form GSTR-9C after the annual return i. e. Form GSTR-9 but on or before 31^st March, 2025.
• The taxpayer will get waiver of late fee EXCEEDING THE AMOUNT PAYABLE UNDER SEC.47 (1) read with Rule 80 of the CGST Act and Rules,2017”.

Example:

If a taxpayer has an annual aggregate turnover of Rs. 8 crore and filed Form GSTR-9 for the F.Y. 2020-21 with a late fee of Rs. 3,000/- for a delay of 30 days but did not file Form GSTR-9C for that financial year, they now intend to file Form GSTR-9C for the said financial year on or before 31st March 2025.

It is sufficient if they pay a late fee of Rs. 3,000/-. This is my understanding after referring to the above notification.

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Disclaimer: This analysis is for knowledge purposes only and is not binding on the author. The author advises referring to the Act, relevant rules, and notifications issued by the CBIC from time to time under the CGST Act, 2017, for more clarity.