Late fee or penalty if GSTR 9 not filed

[SUSHIL BANSAL]

Dear experts

plz guide,

for FY 2018-19: taxable supply was 90 lacs & zero rated supply was 130 lacs & client has not filed GSTR-9 till date. Now the case is under GST audit for 5 years (18-19,19-20,20-21,21-22,22-23). They (GST people) so far verbally told that there will be liability of late fees for not filing of GSTR-9. Plz guide how to deal with.

As per my understanding Late fees can be levied only when some compliance is made late. When compliance not at all made then there should not be any late fees. However general penalty u/s 125 may be imposed. Further plz guide whether SCN u/s 73 can be issued for late fee and if it yes then the time limit for issuing SCN u/s 73 has already expired.

Plz guide I am bit confused.

AI Summary

Late fee for non-filing of annual GST return is automatically enforced by the portal; recovery follows tax procedures.
Late fee liability attaches where GSTR 9 is not filed or is incomplete due to non submission of GSTR 9C; the common portal enforces automatic payment of late fee before filing. GSTR 9C is treated as the reconciliation component of GSTR 9, and non filing leads to automatic late fees under the statutory late fee regime without need for a separate show cause notice, while recovery procedures for unpaid tax operate under distinct provisions; a court decision addressing related issues is cited and a limitation period question is raised but unsettled in the discussion.