In a recent case, the Kerala High Court quashed the order demanding a late fee for delay in filing GSTR-9C as there was a Centre Goods and Service Tax ( CGST ) notification waiving a late fee above Rs. 10,000.
Raju Sreedharan, the petitioner- assessee filed the annual return in Form GSTR-9 along with GSTR-9C for the financial years 2018–2019 and 2019–2020 belatedly. However, the respondent has demanded a late fee and created a huge demand by order.
The assessee argued that the Central Government has, via notifications, waived a late fee above Rs. 10,000 liable to be paid under Section 47 of the CGST/KSGST Act in respect of an assessee who did not file annual returns for the period from the financial year 2018–2019 until April 1, 2023, but filed the same on or before August 31, 2023.
The assessee stated that he has filed the annual returns for the said years before April 1, 2023, is entitled to the benefits of the said notifications, and the order is liable to be set aside.
The two-member bench of Justice Murali Purushothaman viewed that in Anishia Chandrakanth v. the Superintendent, Central Tax & Central Excise wherein it has been held that in view of notifications, there appears to be no justification in continuing with the notices for non-payment of late fee for belated GSTR – 9C filed by tax payees before 01.04.2023, the date on which one time amnesty commences.
It was viewed that “When the Government itself has waived late fee under the aforesaid two notifications Nos.7/2023 dated 31.03.2023 and 25/2023 dated 17.07.2023 in excess of Rs.10,000/-, in case of non-filers there appears to be no justification in continuing with the notices for non-payment of late fee for belated GSTR 9C, that too filed by the taxpayers before 01.04.2023, the date on which one time amnesty commences.”
GSTR-9C is a reconciliation statement for reconciling values between the annual GSTR-9 of a financial year and the audited financial statements of the taxpayer. Every registered taxpayer whose turnover exceeds Rs. 5 crore during a financial year is required to file this reconciliation statement.The court set aside the order to the extent it sought to collect a late fee for delay in filing GSTR-9C. However, the petitioner will not be entitled to claim a refund of the late fee that has already been paid by him over and above Rs. 10,000. Meera V. Menon appeared for the petitioner and Sreelal N. Warrier appeared for the respondent
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