Late fees for GSTR-9

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DIVYESH JAIN (Querist)
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19 February 2022 Dear Sir,

If a person is registered under GST and his Sales is under exempt category under RCM, is he liable to file GSTR-9.

What is the maximum late fee applicable, if his turnover is Rs. 3 crores in F.Y. 2018-19 and F.Y. 2019-20.

Please help me in this matter.

Regards,
Divyesh Jain

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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09 July 2024 ### Filing GSTR-9 for Exempt Sales under RCM

**GSTR-9** is the annual return to be filed by every registered taxpayer under GST. Even if a person's sales are under the exempt category and subject to Reverse Charge Mechanism (RCM), they are still required to file GSTR-9 if their aggregate turnover exceeds the threshold limit.

### Filing Requirement for GSTR-9

As per the current GST rules:

- Every registered person whose aggregate turnover exceeds ₹2 crores during a financial year must file GSTR-9.
- Since your turnover is ₹3 crores for both FY 2018-19 and FY 2019-20, you are required to file GSTR-9 for both years.

### Late Fee for GSTR-9

The late fee for not filing GSTR-9 within the due date is as follows:

1. **CGST Late Fee**: ₹100 per day of delay
2. **SGST Late Fee**: ₹100 per day of delay
3. **Total Late Fee**: ₹200 per day of delay (₹100 CGST + ₹100 SGST)
4. **Maximum Late Fee**: 0.25% of the taxpayer's turnover in the relevant state or union territory.

### Calculation of Maximum Late Fee

To calculate the maximum late fee, let's consider the turnover of ₹3 crores:

1. **Turnover**: ₹3 crores
2. **0.25% of Turnover

### Summary

- **Filing GSTR-9**: Required if the aggregate turnover exceeds ₹2 crores.
- **Maximum Late Fee**: The late fee is capped at 0.25% of turnover in the relevant state or union territory, which in this case would be ₹75,000.

#### Steps to Avoid or Minimize Late Fees

1. **File GSTR-9 promptly**: To avoid late fees, ensure to file the return before the due date.
2. **Check for Extensions or Relief**: Occasionally, the government may extend deadlines or provide relief from late fees. Stay updated with notifications from the GST Council or the CBIC.

If you have already missed the due date, it’s best to file the return as soon as possible to minimize the accruing late fee.

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