Mandatory reconciliation statement filing under GST attracts late fee when Form GSTR-9C is delayed beyond the prescribed time.

The Madras HC interpreted Section 44 and Rule 80(3) of the CGST framework to mean that the annual return includes the reconciliation statement in Form GSTR-9C and that filing it "along with" Form GSTR-9 is mandatory for eligible taxpayers. On that construction, filing Form GSTR-9 without Form GSTR-9C within time amounted to failure to furnish the annual return required under Section 44, attracting late fee under Section 47(2). The court also found that the clarificatory circular and amnesty notification did not relieve the liability because Form GSTR-9C was filed after the relevant cut-off date.

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Issues: Whether late fee under Section 47 of the Central Goods and Services Tax Act, 2017 can be levied for belated filing of Form GSTR-9C, and whether non-filing of the reconciliation statement amounts to failure to furnish the annual return under Section 44 read with Rule 80(3) of the Central Goods and Services Tax Rules, 2017.

Analysis: Section 44, as amended, contemplates the annual return as including a self-certified reconciliation statement, while Rule 80(3) requires eligible registered persons with turnover above the prescribed threshold to furnish Form GSTR-9C along with the annual return. The expression "includes" in the statutory scheme was treated as enlarging the content of the annual return, and the phrase "along with" in Rule 80(3) was treated as mandatory. On that construction, filing Form GSTR-9 without Form GSTR-9C was held to amount to failure to furnish the return required under Section 44 within time. Since Section 47(2) imposes late fee for failure to furnish the return required under Section 44 by the due date, the levy was held to be attracted. The clarificatory circular and the amnesty notification did not avail the petitioner on the facts, as Form GSTR-9C was filed beyond the relevant cut-off date.

Conclusion: Late fee under Section 47 was held payable for delayed filing of Form GSTR-9C, and the impugned levy was sustained.

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