Answer

1. F

   Facts

   Late fee for GSTR-9 depends on aggregate turnover. Up to Rs 5 crore it is Rs 50 a day, Rs 5 to 20 crore it is Rs 100 a day, and above Rs 20 crore it is Rs 200 a day, split equally between CGST and SGST. There is a cap linked to turnover in the State.

2. P

   Provisions and law

   • Sec 47(2), CGST Act 2017Late fee for a delayed annual return, as reduced by notification by turnover band
   • Notification 07/2023-CTReduced GSTR-9 late fee: Rs 50, Rs 100 or Rs 200 a day by turnover band, capped at 0.04 or 0.5 percent of State turnover
3. A

   Analysis

   Example: a business with Rs 3 crore turnover files 40 days late. Late fee is 40 x Rs 50 = Rs 2,000, that is Rs 1,000 CGST and Rs 1,000 SGST. The cap for this band is 0.04 percent of State turnover, which is Rs 12,000 here, so the cap does not bite. For turnover above Rs 20 crore the cap is 0.5 percent. The portal computes the fee and it must be paid in cash.

4. C

   Conclusion

   1. 1Note the number of days from 1 January to your filing date
   2. 2Apply the daily rate for your turnover band
   3. 3Compare with the cap at 0.04 or 0.5 percent of State turnover
   4. 4Deposit the fee in the cash ledger through PMT-06 and file at once

Late fee cannot be paid from the credit ledger.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.