This circular provides clarification on the levy of late fee under Section 47(2) of the CGST Act, 2017 in cases where the reconciliation statement in FORM GSTR-9C is filed after the due date of furnishing the annual return in FORM GSTR-9.

It clarifies that where FORM GSTR-9C is required, the annual return under Section 44 is considered complete only when both GSTR-9 and GSTR-9C are furnished. Hence, late fee applies for the delay in furnishing the complete annual return, calculated from the due date until the filing of both forms. No separate late fee is levied for the two forms individually.

Further, as per Notification No. 08/2025–Central Tax dated 23.01.2025, excess late fees for FYs up to 2022-23 are waived if GSTR-9C is furnished by 31st March 2025. However, no refund will be granted for late fees already paid.