Madras High Court Validates Section 47 Late Fee for Belated GSTR-9C Reconciliation Statement Filing

In a significant judicial pronouncement, the Madras High Court has adjudicated on the legality of levying late fees under Section 47 of the Central/Tamil Nadu Goods and Services Tax Act, 2017 for the delayed submission of the reconciliation statement in Form GSTR-9C. The ruling in the case of Tvl. Madhu Agencies Vs State Tax Officer serves as a critical precedent for businesses, clarifying that the reconciliation statement is an indispensable component of the annual return for eligible entities. Consequently, the failure to file Form GSTR-9C alongside Form GSTR-9 triggers penal consequences under the statutory framework.

Factual Matrix of the Dispute

The legal controversy arose when the assessee challenged an assessment order dated 04.12.2025, which was promulgated under Section 73 of the TNGST Act, 2017. Through this order, the tax authorities imposed a substantial late fee amounting to Rs.1,69,400/-. This financial penalty comprised Rs.84,700/- towards CGST and an equivalent Rs.84,700/- towards SGST, specifically targeting the delayed furnishing of the Form GSTR-9C reconciliation statement.

The timeline of compliance for the assessment year 2021-2022 formed the crux of the factual background:

  • The statutory deadline for submitting the annual return (Form GSTR-9) was fixed at 31.12.2022.
  • The assessee completed this filing on 13.01.2023, resulting in a minor delay of 13 days. The assessee did not dispute this initial delay and duly remitted the corresponding late fee.
  • However, a secondary compliance requirement existed. Because the aggregate turnover of the assessee crossed the threshold of Rs.5 crores, the law mandated the submission of a reconciliation statement in Form GSTR-9C.
  • According to the primary facts recorded, this reconciliation statement was submitted after a significant delay, specifically on 09.05.2025.

Due to this bifurcated filing, the revenue department adopted the stance that the annual return remained legally incomplete until the reconciliation statement was successfully uploaded. Consequently, the authorities calculated the delay up to the date of the GSTR-9C filing and levied the contested late fee.

Submissions on Behalf of the Assessee

The legal counsel representing the assessee advanced several arguments to contest the validity of the impugned assessment order: