What is the penalty for late GSTR-3B filing?
Late fee under Section 47 CGST Act: ₹50/day (₹25 CGST + ₹25 SGST) for normal returns; ₹20/day for nil returns. Uncapped — long delays create significant liability. Additionally, ITC in GSTR-2B is available only if the supplier files their GSTR-1; late filing by your suppliers blocks your ITC.
Who must file GSTR-9C (reconciliation statement)?
Every registered person whose aggregate annual turnover exceeds ₹5 crore must file GSTR-9C — a reconciliation between the audited annual accounts and the annual return (GSTR-9). Since Finance Act 2021, self-certification by the taxpayer is allowed; CA or CMA audit certification is no longer mandatory. Section 44 CGST Act, Rule 80(3) CGST Rules as amended 2021.
Can I claim GST refund on inputs if I sell at a lower GST rate than I buy?
Yes — this is the inverted duty structure refund under Section 54(3)(ii) CGST Act. The formula under Rule 89(5) is: (Turnover of inverted rated supply × Net ITC) ÷ Adjusted Total Turnover − Tax payable on inverted rated supply. Important: ITC on input services cannot be included in the refund claim (Supreme Court, VKC Footsteps India Pvt Ltd v Union of India, 2021).
What happens if GST notice goes unanswered?
An unanswered show-cause notice under Section 73 or 74 CGST Act leads to an ex-parte demand order. If passed under Section 73 (non-fraud), penalty is 10% of tax or ₹10,000, whichever is higher. Under Section 74 (fraud/suppression), penalty is 100% of tax. The demand becomes recoverable by attachment of bank accounts or property under Section 79.
