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Direct and Indirect Taxation · Returns and Payment of Taxes

GSTR-9, GSTR-9C, GSTR-10 and Late Fee under GST

Updated 10 October 2026 · Fact-checked

GSTR-9 is the yearly return a regular taxpayer files by 31 December after the financial year. GSTR-9C is the reconciliation statement for higher turnover. GSTR-10 is the final return after registration is cancelled, due within three months. Section 47 charges a daily late fee, capped at a share of turnover.

Understand Annual Return, Final Return and Late Fee

A GST taxpayer files monthly or quarterly returns during the year. These cover only the tax period they relate to. Errors and adjustments often slip through. The annual return under section 44 of the CGST Act pulls the whole year together in one form, GSTR-9. It reports outward supplies, ITC claimed, tax paid and any differences.

GSTR-9 is due by 31 December following the end of the financial year. Some persons do not file it: input service distributors, persons paying TDS or TCS, casual taxable persons and non-resident taxable persons. For small taxpayers, the filing is made optional by notification when aggregate turnover in the year is up to ₹2 crore. Composition taxpayers file their annual return in their own form (GSTR-4), not GSTR-9.

GSTR-9C is a reconciliation statement. It compares the figures in your annual return with your audited financial statements. Since the law changed, the old requirement of a CA/CMA certified statement is gone. The taxpayer now self-certifies the reconciliation. It applies where aggregate turnover exceeds ₹5 crore in the financial year, and it is filed along with GSTR-9.

GSTR-10 is the final return under section 45. When your registration is cancelled, whether you surrendered it or the officer cancelled it, you must file this return. It is due within three months of the date of cancellation or the date of the cancellation order, whichever is later. It reports the closing position, including stock on which credit must be reversed. ISD, non-resident taxable persons and TDS/TCS deductors are outside this requirement.

Section 47 imposes a late fee. For GSTR-9 the statutory rate is ₹100 per day under CGST and ₹100 per day under SGST/UTGST, so ₹200 per day in total. It is capped at 0.25% of turnover in the State or Union territory under each Act, so 0.5% in total. Government has notified reduced fees and caps for smaller taxpayers, so always read the question for the rate it gives. Interest is separate from late fee.

Key rules to remember

Annual return due date
GSTR-9 due date = 31 December after the end of the financial year
Section 44 CGST Act. The due date can be extended by notification, so use the date given in the question.
GSTR-9C applicability
Aggregate turnover in the financial year > ₹5 crore
Filed with GSTR-9 as a self-certified reconciliation statement. Turnover of exactly ₹5 crore is not covered.
Optional GSTR-9
Aggregate turnover ≤ ₹2 crore: filing optional by notification
Applies year by year through notifications. Treat it as optional only when the question says so or the turnover is within the limit.
GSTR-10 due date
Later of (date of cancellation, date of cancellation order) + 3 months
Section 45 with Rule 81. Take the later date first, then add three months.
Late fee on GSTR-9 (statutory)
₹100 per day (CGST) + ₹100 per day (SGST) = ₹200 per day; cap = 0.25% + 0.25% of turnover in the State/UT
Section 47. Late fee = lower of (days of delay × daily rate) and the cap. Use notified reduced rates if the question states them.

How to solve Annual Return, Final Return and Late Fee questions

Most questions ask you to identify the correct return, decide whether it is mandatory, find the due date or compute the late fee. Use the same order each time.

  1. 1Identify the type of taxpayer: regular, composition, ISD, casual, non-resident, TDS/TCS deductor or a person whose registration is cancelled.
  2. 2Choose the return: GSTR-9 for a regular person's yearly return, GSTR-9C if turnover exceeds ₹5 crore, GSTR-10 on cancellation.
  3. 3Check the turnover limits. Up to ₹2 crore makes GSTR-9 optional. Above ₹5 crore needs GSTR-9C as well.
  4. 4Fix the due date: 31 December after the financial year for GSTR-9 and GSTR-9C. For GSTR-10, take the later of the cancellation date and order date, then add three months.
  5. 5Count the days of delay from the day after the due date up to the filing date, counting both the start and end as the question directs.
  6. 6Compute the late fee: days × ₹200 (₹100 CGST + ₹100 SGST) and compare with 0.5% of turnover in the State/UT. Take the lower figure.
  7. 7Show the CGST and SGST split separately in your answer, and state clearly that interest is additional where tax was paid late.

Quickest way: Four-line checklist for return questions

When to use it: Use when an MCQ or a short note asks who must file, by when, or how much late fee.

  1. Name the return from the situation: yearly means GSTR-9, over ₹5 crore means add GSTR-9C, cancelled registration means GSTR-10.
  2. Remember the numbers: 31 December, ₹2 crore, ₹5 crore, three months.
  3. For late fee, compute days × ₹200 and 0.5% of turnover, then pick the smaller.
  4. Split the final fee equally between CGST and SGST.

Common mistakes in Annual Return, Final Return and Late Fee

  • Saying GSTR-9C needs a certificate from a CA or CMA.

    Older study notes spoke of an audited and certified reconciliation.

    Fix: Write that GSTR-9C is now a self-certified reconciliation statement by the taxpayer, required where aggregate turnover exceeds ₹5 crore.

  • Treating GSTR-9 as compulsory for every registered person.

    Students forget the excluded categories and the optional limit.

    Fix: Exclude ISD, TDS/TCS deductors, casual and non-resident taxable persons. Mark GSTR-9 as optional where turnover is up to ₹2 crore and the notification applies.

  • Adding three months from the date of cancellation instead of the later date.

    Students ignore the date of the cancellation order.

    Fix: Write both dates. Choose the later one. Then add three months for GSTR-10.

  • Charging late fee of only ₹100 per day.

    The CGST amount is taken and the SGST/UTGST amount is forgotten.

    Fix: Charge ₹100 under CGST and ₹100 under SGST, which is ₹200 per day, unless the question gives reduced notified rates.

  • Applying the cap on the wrong turnover or forgetting the cap altogether.

    The fee is computed by days only.

    Fix: Always compute the cap, which is 0.25% each under CGST and SGST of turnover in the State/UT, and pay the lower of the two amounts.

  • Treating late fee and interest as the same thing.

    Both arise from delay.

    Fix: Late fee is a penalty for delay in filing the return. Interest is charged on tax paid late. Compute each separately.

Worked examples

Example 1

Rao Traders has aggregate turnover of ₹1.8 crore. Mehta Industries has aggregate turnover of ₹7.5 crore. Both are regular taxpayers. State the annual filing obligations for the financial year.

Show the solution
  1. Rao Traders: turnover ₹1.8 crore is within ₹2 crore, so GSTR-9 is optional under the notification.
  2. Rao Traders: turnover is below ₹5 crore, so GSTR-9C is not required.
  3. Mehta Industries: turnover ₹7.5 crore is above ₹2 crore, so GSTR-9 must be filed.
  4. Mehta Industries: turnover is above ₹5 crore, so GSTR-9C must also be filed, self-certified, along with GSTR-9.
  5. Due date for both returns is 31 December after the end of the financial year.

Answer: Rao Traders: GSTR-9 optional, no GSTR-9C. Mehta Industries: GSTR-9 and GSTR-9C both due by 31 December following the financial year.

Example 2

Anand Fabrics, a regular taxpayer with turnover of ₹40 lakh in the State, files its GSTR-9 120 days late. Compute the late fee at the statutory rates. Also state when GSTR-10 is due if its registration was cancelled w.e.f. 20 July 2026 by an order dated 12 August 2026.

Show the solution
  1. Daily fee = ₹100 (CGST) + ₹100 (SGST) = ₹200.
  2. Fee by days = 120 × ₹200 = ₹24,000, that is ₹12,000 CGST and ₹12,000 SGST.
  3. Cap = 0.25% × ₹40,00,000 = ₹10,000 under CGST, and ₹10,000 under SGST, total ₹20,000.
  4. Late fee is the lower amount, so ₹20,000.
  5. For GSTR-10, the later date is the order date, 12 August 2026, as 12 August is later than 20 July.
  6. Add three months: 12 November 2026.

Answer: Late fee on GSTR-9 is ₹20,000 (₹10,000 CGST + ₹10,000 SGST). GSTR-10 is due by 12 November 2026.

Exam tips

  • MCQs often test numbers: ₹2 crore, ₹5 crore, 31 December and three months. Learn them as a group.
  • In written answers, name the section: 44 for the annual return, 45 for the final return and 47 for late fee.
  • For late fee sums, show days × rate, the cap and the lower figure as three separate lines.
  • If the question gives notified reduced rates or an extended due date, use those and say so.
  • Keep GSTR-9 and GSTR-9C apart. One is the return, the other is the reconciliation with financial statements.

Practice questions from Returns and Payment of Taxes

Annual Return, Final Return and Late Fee in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Annual Return, Final Return and Late Fee: frequently asked questions

Who needs to file GSTR-9?

Regular registered persons must file it. ISD, TDS/TCS deductors, casual taxable persons and non-resident taxable persons are excluded. Where aggregate turnover is up to ₹2 crore, filing is optional under the notification.

Who must file GSTR-9C?

A registered person whose aggregate turnover in the financial year exceeds ₹5 crore. It is a self-certified reconciliation of the annual return with the audited financial statements, filed with GSTR-9.

When is GSTR-10 filed?

After your registration is cancelled. It is due within three months of the date of cancellation or the date of the cancellation order, whichever is later.

What is the late fee for GSTR-9 under section 47?

At the statutory rate it is ₹100 per day under CGST plus ₹100 per day under SGST, capped at 0.25% of turnover in the State or Union territory under each Act. Reduced fees apply to smaller taxpayers by notification, so check the figures in the question.