GST Annual Return Late Fee

GST Annual Return Late Fee

An overview of the GST annual return late fee

In this post, we will discuss the GST annual return late fee and penalty. Let’s look at each of these sections in detail:

What is a late fee?

According to GST laws, a late fee is imposed if a GST-registered business fails to file returns on time. The business must pay the specified cost in cash for each day of delay, and they cannot use Input Tax Credit (ITC) from the electronic credit ledger for this payment.

What is the GSTR-9 annual return?

GSTR 9 is an annual return that GST-registered taxpayers must file each year. Keep the following in mind:

  • It contains information on outgoing and inward supplies made/received throughout the relevant fiscal year under various tax headings, such as CGST, SGST, IGST, and HSN codes.
  • It summarises all monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that calendar year. Although complex, this return helps to reconcile data for 100% transparent disclosures.

GSTR-9 applicability

All GST-registered taxpayers are required to file GSTR 9. However, the following are NOT necessary to submit GSTR 9:

  1. Taxpayers choose the composition scheme (They must submit GSTR-9A).
  2. Casual Taxable Persons.
  3. Input Service Distributors.
  4. Non-resident taxable persons.
  5. Individuals making TDS payments under section 51 of the CGST Act.
  6. Persons collecting TCS under section 52 of the CGST Act.

Late fee and penalty for not filing GSTR-9

The department classifies taxpayers according to their turnover to apply a late fee for delayed submission of GSTR-9. Starting from the financial year 2022-23, the following late fees are applicable: 

S.NoTurnover LimitLate Fee per DayMaximum Late Fee
1Up to Rs 5 croreRs 50 (Rs 25 each under CGST and SGST Act)0.04% of turnover in state/UT (0.02% each under CGST and SGST Act)
2More than Rs 5 crore and less than Rs 20 croreRs 100 (Rs 50 each under CGST and SGST Act)0.04% of turnover in state/UT (0.02% each under CGST and SGST Act)
3More than Rs 20 croreRs 200 (Rs 100 each under CGST and SGST Act)0.50% of turnover in state/UT (0.25% each under CGST and SGST Act)

That brings us to the end of our post on the GST annual return late charge. Please leave your comments and questions in the space below.


1. Is the GSTR-9 necessary?

Ans: Yes, every GST-registered taxpayer is obligated to file GSTR-9 yearly.

2. Is GSTR 9 mandatory for amounts less than Rs 2 crore?

Ans: No, the department made GSTR-9 optional for enterprises with less than Rs 2 crore in revenue in order to reduce the compliance burden.

3. Should I match my input GST with 2A before submitting GSTR 9?

Ans: Yes, you must reconcile GSTR-2A data with the input tax credit accounted for in your books of accounts before filing GSTR-9.

4. Can I make changes to a previously submitted GSTR-9?

Ans: No, after you have submitted GSTR-9, you can’t make any changes.