Case Note & Summary
The petitioner, Tvl.KPK Fuel Services, a proprietorship firm, challenged an order dated 13.12.2023 issued under Section 73 of the TNGST Act, 2017, which imposed a late fee and penalty for failure to file the annual return in Form GSTR-9 for the financial year 2017-18. The petitioner contended that the time limit for filing the annual return was three years from the due date, and that the due date was extended to 05.02.2026 by notification, so the three-year period lapsed in February 2023. The petitioner also argued that the impugned order erroneously recorded that the return was filed on 07.12.2022, and that late fee could only be levied for belated filing, not for non-filing. Additionally, the petitioner submitted that penalty under Section 125 of the GST enactments could not be imposed after levying a late fee. The respondent, the State Tax Officer, was represented by Government Counsel. The court examined Section 47(2) of the CGST Act, which imposes a late fee of Rs.100 per day for failure to furnish the return by the due date, subject to a maximum of 0.25% of turnover. The court found that the provision clearly applies to failure to file the return, and thus the late fee was valid. Regarding the penalty, the court noted that Section 125 allows penalty up to Rs.25,000 for contravention of any provision if no separate penalty is prescribed, and since no separate penalty is prescribed for failure to file the annual return, the penalty was also valid. The court dismissed the writ petition, holding that there was no infirmity in the impugned order warranting interference under Article 226 of the Constitution of India. The connected miscellaneous petitions were closed.
Headnote
A) Goods and Services Tax - Levy of Late Fee - Section 47(2) of Central Goods and Services Tax Act, 2017 - Late fee is leviable on a registered person who fails to furnish the return required under Section 44 by the due date, at Rs.100 per day subject to maximum of 0.25% of turnover - The court held that the provision clearly applies to failure to file return, and the impugned order imposing late fee was valid (Paras 4-7). B) Goods and Services Tax - Penalty - Section 125 of Central Goods and Services Tax Act, 2017 - Penalty of up to Rs.25,000 can be imposed for contravention of any provision if no separate penalty is prescribed - Since no separate penalty is prescribed for failure to file annual return, imposition of penalty under Section 125 is in order - The court held that the petitioner's contention that penalty cannot be imposed after levying late fee was untenable (Paras 6-7).
Issue of Consideration
Whether the imposition of late fee and penalty under GST for failure to file annual return is valid
Final Decision
Writ Petition dismissed. No costs. Connected miscellaneous petitions closed.
Law Points
- Late fee leviable for failure to file return
- Penalty under Section 125 valid if no separate penalty prescribed
- Section 47(2) CGST Act applies to non-filing of annual return
