Consequences of Non-filing of GST returns 

Recent circular, Circular No – 129/48/2019- GST Dated – 24th December 2019, Standard Operating Procedure is to be followed by department all over India, guidelines are laid down by the board for taking action on non-filers of GST return. Any delay in furnishing GST return will have serious consequences now, starting from issue of automated notice end up with concluding the best judgment assessment by jurisdictional officer. In order to ensure the uniformity in the implementation of these provisions, Standard Operating Procedures (SOP) been issued across India to be followed by the proper officer and take further action on non-filers. Below are the SOPs laid down for non-filers:

1. Preferably, a system-generated message would be sent to all the registered persons 3 days before the due date to nudge them about filing of the return for the tax period by the due date
2. Once the due date for furnishing the return is over, a system generated mail / message would be sent to all the defaulters immediately after the due date to the effect that the said registered person has not furnished his return for the said tax period; the said mail/message is to be sent to the authorized signatory as well as the proprietor/partner/director/karta, etc
3. Five days after the due date of furnishing the return, a notice in FORM GSTR-3A shall be issued electronically to such registered person who fails to furnish return, requiring him to furnish such return within fifteen days
4. In case the said return is still not filed by the defaulter within 15 days of the said notice, the officer may proceed to assess the tax liability of the said person to the best of his judgement and would issue order in FORM GST ASMT-13
5. For the purpose of assessment of tax liability, the officer may take into account the details of outward supplies available in the statement furnished, details of supplies auto populated in FORM GSTR-2A, information available from e-way bills, or any other information available from any other source, including from inspection
6. In case the defaulter furnishes a valid return within thirty days of the service of assessment order in FORM GST ASMT-13, the said assessment order shall be deemed to have been withdrawn. However, if the said return remains unfurnished within period of 30 days from issuance of order in FORM ASMT-13, then officer may initiate proceedings under section 78 and recovery under section 79 of the CGST Act

Above general guidelines may be followed by the proper officer in case of non furnishing of return. In deserving cases, based on the facts of the case, the Commissioner may resort to provisional attachment to protect revenue under section 83 of the CGST Act before issuance of FORM GST ASMT-13.

Further, the proper officer would initiate action under sub-section (2) of section 29 of the CGST Act for cancellation of registration in cases where the return has not been furnished for the period specified in section 29 Govt is not taking lightly to the GST non-filers. Recently, GST Department has stopped generation of E-Way bill due to the non-filing of GSTR-3B.

To conclude the above discussion, it is always advisable to complete your compliance in due course to avoid legal action, further penalty and save additional cost. Get in touch undersigned to get the health checkup card of your startup and know more about GST and other compliance.