The following are the consequences of the failure in submitting the annual return and not getting the accountsaudited:

  • Section 44(2) of the CGST Act and State/ Union Territory GST Act provides that every registered person shall file electronically an annual return in FORM GSTR-9 along with a reconciliation statement in FORM GSTR-9C, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financialstatement.
  • Section 47(2) of the CGST Act provides for levy of a late fee of Rs. 100/- per day (each under CGST Act and under SGST Act) for delay in furnishing annual return in FORM GSTR-9, subject to a maximum amount of quarter percent (0.25%) of the turnover in the State or Union Territory. Similar provisions for levy of late fee exist under the State/ Union Territory GSTAct.
  • On a combined reading of section 47(2) and section 44(2) of the CGST Act and State/ Union Territory GST Act, a late fee of Rs. 200/- per day (Rs. 100 under CGST law + Rs. 100/- under State/ Union Territory GST law) can be levied which would be capped to a maximum amount of 0.50% (0.25% under the CGST Law + 0.25% under the SGST/ UTGST Law) of turnover in the State or Union Territory.
  • In a situation where a registered person gets FORM GSTR-9C duly certified but fails to furnish both FORM GSTR-9 and FORM GSTR- 9C on the common portal, the provisions of late fee cited in clause “a to c” supra would equallyapply.
  • In a situation where a registered person files only FORM GSTR-9, but fails to file FORM GSTR-9C, the filing of FORM GSTR-9 may be considered to have been defaulted, whereby the late fee cited in clause "a to c" supra wouldapply.