To,

The …………………………..,

…………………………………,

………….. …………………….

Subject – Request for waiver of late fee and penalty for delay in filing Annual Return & Reconciliation Statement u/s 44 of CGST Act

Dear Sir,

Ref: Your letter number ………………………………………. Dated …………………

1. We are in receipt of the above referred letter directing us to pay the late fee u/s 47 and penalty u/s 125 of CGST Act for delay in filing Annual return & Reconciliation Statement u/s 44 of CGST Act.
2. At the outset, we would like to submit that we have filed the Annual return & Reconciliation Statement for Financial Year 20….-20…………. on ……………. (Annexure –A) i.e. beyond the due date prescribed. At the time of filing of return, common portal has not levied any late fee and because of lack of knowledge we also did not mention the amount of late fee on self-assessment basis.

iii. Annual Return in GSTR-9 and GST-9C are only informative returns and mainly serve the purpose of annual compilation of monthly figures disclosed in monthly returns. The tax is collected by the government though monthly return in GSTR-3B. In other words, delay in filing of GSTR 9 or GSTR 9C does not impact the Government Exchequer, except negligible collection through DRC-03 which is any way subject to interest.

1. GST being new law, and technology driven, there was lot of confusion and misconceptions in the minds of taxpayers. The huge late fee indirectly encourages non-compliance because of poor understanding of law on the part of taxpayers. When taxes are paid in full, why we should pay such huge late fee for merely information return?
2. Rationalization of late fee for GSTR-9 and Amnesty to GSTR-9 non-filers has been introduced as a relief to the taxpayers from high late fees, vide Notification No. 07/23-CT dated 31.03.2023, late fee payable for delayed filing of FORM GSTR-9 or GSTR-9C for Financial Year 20….-….. to Financial Year 20….-….. was capped to maximum of Rs. 20,000/- (Rs. 10,000/- + Rs. 10,000/-) if filed between 01.04.23 to 30.06.23 and the due date was further extended till 31.08.2023 vide Notification No. 25/2023-CT dated 17.07.2023.
3. Therefore, in view the above and severe hardship faced by the taxpayers and considering the non-financial implication of GSTR 9 and GSTR 9C on Government Exchequer, it is earnestly requested to waive off the late fees u/s 47 and penalty u/s 125 of the CGST Act on delay in filing of Annual Return and reconciliation statement in GSTR-9 and GSTR-9C for the Financial Year 20…..-20……………..

We hope that you will consider our reply. You are requested to drop the issue on above basis.

Thanking you
Yours faithfully
For ………………………….
………………………………
Date : …………………..
Place : …………………..

Encl.:

• Copy of GSTR 9 and GSTR 9C

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