Late Fees on GSTR9 and 9C for F.Y.2020-21

This query is : Resolved

Jatin Bhatt (Querist)
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22 January 2024 Hello Experts,
For a Trading Firm having turnover 3.5 crore missed to file GSTR9 for F.Y.2020-21, now on portal late fees is auto calculated showing approx. 1,50,000/- and day by day it is increasing.
and for a Construction Firm with turnover of 10 crore missed to file GSTR9C for F.Y.202-21, so is there any relaxations now to mitigate this late fees burden, any circular/notification/judgement anything which can assist in this situations.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 As of my last update, here's the guidance regarding late fees for filing GSTR-9 and GSTR-9C for the financial year 2020-21, and any relaxations or notifications that may apply:

### GSTR-9 (Annual Return) for Trading Firm:

1. **Late Fees Calculation**:
- For a trading firm with a turnover of 3.5 crore, the late fees for not filing GSTR-9 on time is automatically calculated on the GST portal. The late fee is typically Rs. 100 per day under CGST and Rs. 100 per day under SGST, subject to a maximum of Rs. 5,000 per return (Rs. 10,000 total for CGST and SGST combined).

2. **Relaxations or Notifications**:
- As of now, there haven't been specific notifications or circulars providing relaxations for late fees related to GSTR-9 filings for FY 2020-21.
- It's important to note that late fees continue to accrue until the return is filed, but there have been instances in the past where the government has provided relief in terms of late fee waiver due to genuine hardships or during specific periods of economic stress (such as during the COVID-19 pandemic).

3. **Course of Action**:
- Given the automatic calculation of late fees on the GST portal, it's advisable to file the GSTR-9 at the earliest to stop further accrual of late fees.
- You can also consider reaching out to a GST consultant or tax advisor who can assist in filing the return and possibly guide you on any potential relief measures or strategies.

### GSTR-9C (Reconciliation Statement) for Construction Firm:

1. **Late Fees Calculation**:
- For a construction firm with a turnover of 10 crore, the late fees for not filing GSTR-9C (which is required for taxpayers with turnover exceeding 5 crore) are similarly calculated as per the automatic system on the GST portal.

2. **Relaxations or Notifications**:
- Similar to GSTR-9, there haven't been specific notifications or circulars providing relaxations for late fees related to GSTR-9C filings for FY 2020-21.
- The approach remains the same: file the GSTR-9C at the earliest to avoid further late fees and consider professional advice if needed.

### Recommendations:

- **Immediate Action**: File the GSTR-9 and GSTR-9C as soon as possible to mitigate further late fees.
- **Consultation**: Seek guidance from a GST practitioner or chartered accountant who can provide specific advice tailored to your firm's situation and possibly explore any recent updates or relaxations that may have been issued since my last update.

Always ensure compliance with GST regulations to avoid penalties and maintain financial discipline in your business operations.