Waiver of Late Fees for Annual Return Filing (GSTR–9)—CA. L. Venkataraman

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The Tax Publishers GST--GSTR-9 Waiver of Late Fees for Annual Return Filing (GSTR-9) CA. L. Venkataraman Learned author seeks to discuss the provisions relating to levy of late fees under GST Act with reference to recently issued Notification No.07/2023-Central Tax dt. 31-3-2023 in pursuance of GST Council recommendations. (Analysis of Notification No.07/2023-Central Tax, dt. 31st March 2023) 1. Introduction The Central Board of Indirect Taxes and Customs has recently issued Notification No.07/2023-Central Tax, dated 31-3-2023 notifying reduction of late fees for delay in filing annual return (GSTR-9) for the financial years 2017-18, 2018-19,2019-20,2020-21,2021-22 and restructure existing late fees from the financial year 2022-2023 onwards on the basis of aggregate turnover of the registered person. Two Important terms referred in the notification are a "registered person" and "aggregate turnover" based on which the late fees is decided from the financial years 2022-2023 2. Registered Person-2(94) CGST Act As per section 2(94) 'registered person' means a person who is registered under section 25 but does not include a person having a Unique Identity Number. Section 25 of CGST Act prescribes the procedure for registration. So the above notification applies only a to, registered person who has filed his monthly/quarterly return under the GST Act. The definition "registered person" starts with means, so it is exhaustive definition. Every person/unit of person requiring registration under GST Act as prescribed -every taxable person will be treated as a registered person the moment registration is granted to it, excluding cases where a Unique Identity Number(UIN) is granted. A specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act 1947, Consulate or Embassy of foreign countries and any other persons who are notified by the Commissioner shall be granted a UIN for certain purposes- such as for refund of taxes on the notified supplies of goods or services or both received by them. Section 22 of the CGST Act deals with person liable for registration, Section 23 deals with persons not liable for registration, Section 24 of the CGST provides for Compulsory registration in certain cases. 3. Aggregate Turnover-2(6) CGST Act As per Section 2(6) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; The above value should be taken excluding any tax element but including exempt supply under section 2(47), Non-taxable supply under section 2(78), Zero rated supply under section 2(23). Similarly, for the purpose of aggregate turnover, activities or transactions specified in Schedule III of CGST Act are to be treated as neither goods or services should not be included. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--GSTR-9

Waiver of Late Fees for Annual Return Filing (GSTR-9)

CA. L. Venkataraman

Learned author seeks to discuss the provisions relating to levy of late fees under GST Act with reference to recently issued Notification No.07/2023-Central Tax dt. 31-3-2023 in pursuance of GST Council recommendations.

(Analysis of Notification No.07/2023-Central Tax, dt. 31st March 2023)

1. Introduction

The Central Board of Indirect Taxes and Customs has recently issued Notification No.07/2023-Central Tax, dated 31-3-2023 notifying reduction of late fees for delay in filing annual return (GSTR-9) for the financial years 2017-18, 2018-19,2019-20,2020-21,2021-22 and restructure existing late fees from the financial year 2022-2023 onwards on the basis of aggregate turnover of the registered person. Two Important terms referred in the notification are a "registered person" and "aggregate turnover" based on which the late fees is decided from the financial years 2022-2023

2. Registered Person-2(94) CGST Act

As per section 2(94) 'registered person' means a person who is registered under section 25 but does not include a person having a Unique Identity Number.

Section 25 of CGST Act prescribes the procedure for registration. So the above notification applies only a to, registered person who has filed his monthly/quarterly return under the GST Act. The definition "registered person" starts with means, so it is exhaustive definition. Every person/unit of person requiring registration under GST Act as prescribed -every taxable person will be treated as a registered person the moment registration is granted to it, excluding cases where a Unique Identity Number(UIN) is granted.

A specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act 1947, Consulate or Embassy of foreign countries and any other persons who are notified by the Commissioner shall be granted a UIN for certain purposes- such as for refund of taxes on the notified supplies of goods or services or both received by them.

Section 22 of the CGST Act deals with person liable for registration, Section 23 deals with persons not liable for registration, Section 24 of the CGST provides for Compulsory registration in certain cases.

3. Aggregate Turnover-2(6) CGST Act

As per Section 2(6) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

The above value should be taken excluding any tax element but including exempt supply under section 2(47), Non-taxable supply under section 2(78), Zero rated supply under section 2(23). Similarly, for the purpose of aggregate turnover, activities or transactions specified in Schedule III of CGST Act are to be treated as neither goods or services should not be included.