CBIC Waives GSTR-9C Late Fees for FY 2017-18 to FY 2022-23: Compliance Guide for Taxpayers

Introduction

In a significant move to ease compliance for taxpayers, the Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 08/2025 – Central Tax, dated January 23, 2025. The notification announces a waiver of late fees under Section 47 of the Central Goods and Services Tax Act, 2017 for taxpayers who failed to file their GSTR-9C reconciliation statements for the financial years 2017-18 to 2022-23 within the prescribed timelines.

This is a welcome relief for taxpayers who have struggled with compliance deadlines and the hefty penalties associated with late filing. This article provides a comprehensive guide to understanding the notification, its implications, and steps taxpayers can take to benefit from this waiver.

What Is GSTR-9C?

GSTR-9C is a reconciliation statement that taxpayers with an annual turnover exceeding the prescribed limit (₹5 crore in most cases) are required to file under the GST framework. It serves as an audit document reconciling the figures declared in GSTR-9 (annual return) with the audited financial statements of the taxpayer.

This statement is vital for verifying the accuracy of GST returns filed during the financial year and ensuring compliance with GST regulations.

For more details on GST annual return kindly refer our detailed article GST Annual Return Due Date: A Complete Guide  

Key Highlights of Notification No. 08/2025

The latest notification from CBIC introduces the following key measures:

1. Waiver of Late Fees
   • The late fees exceeding the prescribed amount under Section 47 of the CGST Act have been waived for taxpayers who file their pending GSTR-9C forms for the financial years 2017-18 to 2022-23 by March 31, 2025.
   • This waiver provides much-needed relief to taxpayers burdened with penalties due to delayed filings.
2. Applicability
   • The waiver applies to all registered taxpayers required to file GSTR-9C for the financial years:
     • 2017-18
     • 2018-19
     • 2019-20
     • 2020-21
     • 2021-22
     • 2022-23
3. No Refund Clause
   • Taxpayers who have already paid late fees for GSTR-9C filing will not be eligible for any refund under this notification.
4. Deadline for Compliance
   • The waiver is valid only for GSTR-9C filings completed by March 31, 2025.

Implications for Taxpayers

This notification has several positive implications for businesses and taxpayers:

• Reduced Financial Burden
  Late fees for non-compliance can be significant, especially for small and medium enterprises. This waiver eliminates the excess financial burden on taxpayers.
• Encourages Timely Compliance
  With a clear deadline in place, taxpayers are motivated to file their pending GSTR-9C forms promptly, ensuring better compliance with GST regulations.
• Relief for Past Non-Compliance
  Taxpayers who missed deadlines for previous financial years now have an opportunity to rectify their compliance history without incurring additional costs.

Why Is GSTR-9C Filing Important?

Filing GSTR-9C is not just a compliance requirement; it also serves as an important step in ensuring:

• Transparency
  The reconciliation of GSTR-9 with audited financial statements ensures accurate tax reporting.
• Avoidance of Future Penalties
  Timely filing helps avoid interest, penalties, and legal complications.
• Audit Readiness
  Proper filing ensures that businesses are prepared for GST audits conducted by tax authorities.

Steps to File GSTR-9C

If you’re planning to take advantage of the late fee waiver, here’s a step-by-step guide to filing GSTR-9C:

1. Log in to the GST Portal
   • Access the GST portal using your credentials.
2. Download GSTR-9C Format
   • Download the GSTR-9C template or use the offline utility provided on the GST portal.
3. Prepare Data for Reconciliation
   • Collect data from your GSTR-9, audited financial statements, and other relevant documents.
4. Fill the Reconciliation Statement
   • Populate the GSTR-9C form with accurate data, ensuring that all figures are correctly reconciled.
5. Upload Digital Signature Certificate (DSC)
   • The GSTR-9C form must be digitally signed by the taxpayer or an authorized representative.
6. File on GST Portal
   • Once completed, submit the form on the GST portal and keep the acknowledgment for your records.

Common Challenges in GSTR-9C Filing

Taxpayers often face the following challenges when filing GSTR-9C:

• Data Reconciliation
  Differences between GST returns and financial statements can lead to errors during reconciliation.
• Complexity of Reporting
  GSTR-9C requires detailed reporting, which can be time-consuming and error-prone.
• Technical Issues
  The GST portal may experience technical glitches, especially during peak filing periods.

To address these challenges, consider seeking professional assistance from chartered accountants or GST consultants.

Tips for Taxpayers

• Start Early
  Don’t wait until the last moment to file your GSTR-9C. Early preparation ensures accurate filing and avoids last-minute hassles.
• Review Past Filings
  Revisit your GSTR-9 and other GST returns to ensure consistency in reporting.
• Seek Professional Help
  Engage a qualified professional to assist with the preparation and filing of GSTR-9C.
• Use Technology
  Leverage GST filing software to streamline data entry and reconciliation processes.

Conclusion

The waiver of late fees for GSTR-9C filings for FY 2017-18 to FY 2022-23 is a significant relief for taxpayers. It not only reduces the compliance burden but also encourages timely filing of pending returns. However, the March 31, 2025, deadline must be strictly adhered to in order to avail of this benefit.

Taxpayers are urged to act promptly, ensure accurate filings, and maintain compliance with GST regulations to avoid future penalties.

For professional assistance with GSTR-9C filing or any other GST compliance needs, feel free to contact us at QuickComply.

Refer the detailed notification here