Decided 21 December 2024. The Himachal Pradesh High Court has set aside a late fee demand of Rs 12,71,754 for delayed GSTR-9 and GSTR-9C, holding that the benefit of the amnesty in Notification No. 07/2023-Central Tax cannot be denied merely because the taxpayer filed its returns on 13.03.2023, shortly before the amnesty window of 01.04.2023 to 30.06.2023 opened.
Case at a glance
| Case | M/s R.T. Pharma v. Union of India & Ors. |
| Forum | Himachal Pradesh High Court (Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya) |
| Case No. | CWP No. 4899 of 2024 |
| Date of decision | 21 December 2024 |
| Late fee | Rs 12,71,754 |
| Key notification | Notification No. 07/2023-Central Tax dated 31.03.2023 |
| Result | Order and SCN set aside; remanded to extend amnesty benefit |
Facts of the case
The petitioner, a medicine manufacturer, had a due date of 07.02.2020 for GSTR-9 and GSTR-9C but, due to financial distress, filed them on 13.03.2023.
Notification 07/2023 waived late fee above Rs 10,000 for annual returns of FY 2017-18 to 2021-22 filed between 01.04.2023 and 30.06.2023. A show cause notice under section 74 and an order dated 30.11.2023 confirmed late fee of Rs 12,71,754, holding the petitioner outside the window.
Issue before the High Court
Can a taxpayer who filed the annual return before the amnesty window opened be denied the benefit given to those who filed during the window?
What the High Court held
- The petitioner relied on the Kerala High Court in Anishia Chandrakanth, which held that notices for late fee on GSTR-9C filed before 01.04.2023 were unjust after the government itself waived late fee.
- The government's intention was not to harass taxpayers but to encourage filing of returns.
- It would be unjust to deny the benefit merely because the petitioner filed before the amnesty notification, which confined relief to returns filed between 01.04.2023 and 30.06.2023.
- The order dated 30.11.2023 and the show cause notice were set aside and the matter remanded for a fresh order extending the benefit, preferably within three months.
Practical takeaways for taxpayers
- If you paid or were assessed heavy late fee for annual returns filed just before 01.04.2023, consider relying on this ruling and Anishia Chandrakanth.
- The Kerala ruling noted that late fee already paid above Rs 10,000 may not be refundable; check the facts of your case.
- Late fee demands can be challenged on parity with similarly placed taxpayers under amnesty schemes.
Frequently asked questions
What did Notification 7/2023 provide?
For annual returns of FY 2017-18 to 2021-22 filed between 01.04.2023 and 30.06.2023, late fee above Rs 10,000 was waived.
Does the benefit apply to returns filed before 01.04.2023?
The HP High Court held it would be unjust to deny it to such filers and remanded the matter to extend the benefit.
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This summary is based on the order of the Himachal Pradesh High Court in CWP No. 4899 of 2024. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.