STANDARD OPERATING
PROCEDURE IN RESPECT OF DEFAULT RETURN FILERS UNDER GOODS AND SERVICES TAX ACT,
2017
The Goods and Services Tax Act,
2017 came into force in India
To watch the prompt return filing
by taxpayers under the Goods and Services Tax Act, 2017 the Central Government
has introduced Standard Operating Procedure to be followed in case of
non-filers of returns and the same procedure comes into force with effect from
1.1.2020.
As per the Standard Operating
Procedure issued the taxpayer will have to file GST Returns within the due
dates. The delay in filing of GST returns
will lead to best judgement orders and lead to cancellation of registration in
addition to recovery proceedings and attachment of property and freeze of bank
accounts etc.,
Under the Standard Operating
Procedure the following actions will be taken by the proper officers in respect
of FORM GSTR-3B.
The monthly return in FORM
GSTR-3B has to be filed on or before the 20th day of succeeding month with
payment of tax, penalty, fine and late fee etc.
To watch and avoid delay in return filing the following procedure will
be followed which is called Standard Operating Procedure.
FORM GSTR-3B
TO BE FILED BEFORE 20TH DAY OF SUCCEEDING MONTH WITH PAYMENT OF IGST, CGST
AND SGST/UTGST
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TAXPAYER
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DATE OF
ACTION
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PROPER
OFFICER
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Taxpayer has to file FORM
GSTR-3B return between 1st day to 20th day of the succeeding month.
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17th
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A system generated message will
be sent to all taxpayers to file FORM GSTR-3B before the due date to nudge
taxpayers about filing of the return for the tax period by the due date.
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Taxpayer has to file FORM
GSTR-3B before the due date.
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20th
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If the return is not filed on
or before the due date system generated mail or message regarding the
non-filing of FORM GSTR-3B will be sent by proper officer to the authorized
signatory as well as proprietor, partner, director, kartha, etc.
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Taxpayer has to file FORM
GSTR-3B with payment of tax and late fee.
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25th
FORM GSTR-3A
(5 days delay)
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If the return in FORM GSTR-3B
not filed within 5 days after due dates a notice in FORM GSTR-3A will be
issued to the default taxpayer directing to file return within 15 days.
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Taxpayer has to file FORM
GSTR-3B within the prescribed time mentioned in the notice with late fee etc.
If the taxpayer files the return the notice issued in FORM GSTR-3A will be
treated as withdrawn
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Next 15 days from
25th to 10th
(20 days delay)
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If the return is not filed
within the stipulated period i.e. within 15 days, the best judgement
assessment in FORM ASMT-13 will be issued by the proper officer to the
default taxpayer. The proper officer
will upload the summary thereof in FORM GST DRC-07.
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If the taxpayer files a valid
return within 30 days of service of assessment order in FORM GST ASMT-13, the
said assessment order shall be deemed to have been withdrawn
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After 20 days from
the due date
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If the return is not filed by
the defaulter within 15 days of issuance of FORM ASMT-13, the proper officer
may initiate assessment proceedings taking into account the details of
outward supplies available in the statement furnished under section 37 (FORM
GSTR-1_, details of supplies auto-populated in FORM GSTR-2A and information
available from e-way bills, or any other information available from any other
source, including from inspection under Section 71.
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Next action
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Proper officer will initiate
recovery proceedings and pass assessment orders under GST Act, 2017.
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Further action
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If the taxpayer fails to file
FORM GSTR-3B and failed to pay tax and penalty as per best judgement order
the proper officer will take action under section 29(2) of the CGST Act for
cancellation of registration in cases where the return has not been furnished
for the period specified in Section 29.
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The same procedure will be applicable for FORM GSTR-5, FORM GSTR-5A, FORM GSTR-6, FORM GSTR-7, FORM GSTR-8 CMP-08 and FORM GSTR-1 also.
The relevant Circular is given below for ready reference:
New
Delhi
The relevant Circular is given below for ready reference:
CBEC-20/06/04/2019-GST Government of India Ministry
of Finance Department of Revenue
Central Board of Indirect
Taxes and Customs
GST Policy
Wing
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Circular No. 129/48/2019 - GST
The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners
/
Commissioners of Central Tax (All)
The Principal Director Generals /
Director
Generals (All) Madam/Sir,
Subject: Standard Operating Procedure
to
be followed in
case of non-filers of returns
– reg.
Doubts have been raised across the field formations in respect of the appropriate procedure to be followed in case of non-furnishing of return under section 39 or section 44 or section 45
of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as the
“CGST Act”). It has further been brought to the notice that divergent practices are being
followed in case of non-furnishing of the
said returns.
2. The matter has been examined. In order to clarify the issue and to ensure uniformity in the implementation
of the provisions of the law across field formations, the Board,
in exercise of its powers conferred by
section 168 (1) of the CGST Act, hereby issues the
following clarifications and guidelines.
3. Section 46 of the CGST Act read with rule 68 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) requires issuance of
a notice in FORM GSTR-3A
to a registered person who
fails to furnish return under section 39 or section 44 or section 45
(hereinafter referred to as the “defaulter”) requiring
him to furnish such return within fifteen days. Further section 62 provides for
assessment of non-filers of return
of registered persons who
fails
to furnish return under section
39 or section 45 even after service of notice under
section 46. FORM GSTR-3A
provides as under:
“Notice to return defaulter u/s 46 for not filing return
Tax Period - Type of Return -
Being a registered taxpayer, you are
required to furnish return for the supplies made or received and to discharge
resultant tax liability
for the aforesaid tax period by due date. It has been
noticed
that you have not
filed the said return till date.
1. You are, therefore, requested to furnish the said return within 15 days failing which the
tax liability may be assessed u/s 62 of the Act, based on the relevant material available with this office. Please note that in addition to tax so assessed, you will also be liable to pay interest and penalty as
per provisions of the Act.
2. Please note that no further communication will be issued for
assessing the liability.
3. The notice shall be deemed to have been withdrawn in case the return referred above, is
filed by
you before issue of the assessment
order.”
As such, no separate notice is required to be issued for best judgment assessment under section 62 and in case of failure to file return within 15 days of issuance of FORM GSTR-
3A, the best judgment assessment in FORM ASMT-13 can be issued without any further
communication.
4. Following guidelines are hereby prescribed to ensure uniformity in the implementation
of the provisions of law across the
field formations:
(i) 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.
(ii) Once the due date for furnishing
the return
under section 39 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.
(iii) Five days after the due date of furnishing the return, a notice in FORM GSTR-3A
(under section 46 of the CGST Act read with rule 68 of the CGST Rules) shall be issued electronically to such registered
person who fails to furnish
return
under section 39, requiring him to furnish such return within fifteen days;
(iv) In case the said return is still not filed by the defaulter within 15 days of the said
notice, the proper officer may proceed to assess the tax liability of the said person
under section 62 of the CGST Act, to the best of his judgement taking into account all
the relevant material which is available or which he has gathered and would issue order under rule 100 of the CGST Rules in FORM GST ASMT-13. The
proper officer would then be required to upload the summary thereof in FORM GST DRC-
07;
(v) For the purpose of assessment of tax liability under section 62 of the CGST Act, the
proper officer may take into account the details of outward supplies available in the
statement furnished under
section 37 (FORM GSTR-1), 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 under section
71;
(vi)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 in terms of provision of
sub-section (2) of section 62 of the CGST Act. However, if the said return remains unfurnished
within the statutory period of 30 days from issuance of order in FORM ASMT-13, then
proper officer may
initiate proceedings under section 78 and recovery
under section 79 of the CGST Act;
5. 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.
6. 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.
7.
It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.
8. Difficulty, if any, in implementation
of the above instructions may please be brought to the notice of the Board. Hindi version
would follow.
(Yogendra Garg) Principal Commissioner (GST)