Return is very important aspect of GST. Return filed by the taxable person is the base for Government to keep track over tax paid and Input Tax Credit availed.

Filing of return is the biggest nightmare for tax payers. It is equally challenging for Government to ensure compliance of return fling provisions by the registered person.

There is a provision in GST Act / Rules 2017 for issuance of notice and further necessary action against defaulters, who fails to return furnishing under section 39( GSTR 3B ), section 44( Annual Return ) or section 45 ( Final Return on cancellation of registration ). At present divergent practices are being followed by the authorities in case of non furnishing of returns. In order to ensue uniformity in the implementation of the provisions of law across field formation, CBIC has issued clarifications and guidelines vide circular No. 129/48/2019 dated 24 Dec 2019.

Rubber stamp with the text past due over an invoice document. 3D illustration. Concept of unpaid debt recovery.

An attempt has been made to explain the procedure in a simple way :-

A system generated message would be sent to all the registered person 3 days before the due date to remind them about filing of return for the tax period by the due date. For example – for GSTR 3B of Jan 2020,where due date is 20th Feb 2020, reminder message will be sent on 17th Feb 2020 to all the registered person.

Once due date for furnishing the return is over,( 21 Feb 2020 ) a system generated mail/ message will be sent to the registered person who has not furnished his return on due date (20th Feb 2020 ). The message/ mail will be sent to authorised signatory as well as proprietor/partner/director/karta etc

Five days after the due date of furnishing the return ( 26th Feb 2020 ) a notice in Form GSTR 3A shall be issued electronically to such registered person who fails to furnish return ( GSTR 3B ) under sec 39. Format of GSTR – 3A is as indicated below:-

Form GSTR-3A

Withdrawn of Notice Notice shall be deemed to have been withdrawn,in case, the registered person furnished return within 15 days of issuance of notice.

In case the said return is not filed by the defaulter even after 15 days of issuance of Form GSTR 3A, Best Judgment Assessment under section 62 will be done by the proper officer without any further communication to the registered person.

Best Judgment Assessment – As per sec 62 of CGST Act, if a registered person fails to furnish the returns under sec 39( GSTR 3B ) or sec 45( Final return on cancellation of registration ) even after 15 days of service of notice under sec 46, the proper officer may proceeds to assess the tax liability of the said person to the best of his judgment. Such tax liability will be assessed based on reliable documents available with the proper officer.

Reliable Documents for Best Judgment Assessment Following are the relevant documents, details of which will be used by the proper officer for assessment of tax liability :-

(a) Details of outward supplies available in the statement furnished under section 37 ( FORM GSTR 1)

(b) Details of supply auto populated in FORM GSTR 2A

(c ) Information available from E Way Bills

(d) Information available from inspection, if done

(e) Information available from any other sources

Best Judgment Assessment order will be issued in FORM ASMT-13 and proper officer is required to upload the summary there of in FORM GST DRC 07.

Withdrawn of Best Judgment Assessment Order Where the taxable person furnishes a valid return within 30 days of the service of the assessment order, the said order shall be deemed to have been withdrawn. However, he has to discharge liability for late fees under sec 47 & payment of interest under sec 50.

Consequence of non filing of return even after statutory period of 30 days – Proper officer shall initiate proceedings under section 78 and recovery under section 79 of the Act if said return remain unfurnished within statutory period of 30 days from issuance of order in FORM ASMT -13.

Provisional Attachment of movable/ immovable property – The commissioner may resort to provisional attachment of defaulter’s property to protect revenue under sec 83 of the Act before issuance of Form GST ASMT 13.He may do so, in the deserving cases based on the facts of the case.

Cancellation of registration for non filing of Return – Proper office would initiate action under sub section (2) of section 29 of the CGST Act for cancellation of registration in case where the return has not been furnished for the period specified in section 29.

Registered person are advised to comply with all the due dates for filing the GST returns as coming days are going to be very tough for the defaulters.

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  1. G Venkatesh says:

    I don’t know, what the govt is really thinking, Why it is again and again punishing the recipient alone for the fault of the supplier. By giving unnecessary powers to govt officials will create under the table dealing and ultimately it will make the officials corrupt by means of bribe ( as was in the case of earlier tax regime)
    Here I have sorted out some practical difficulties faced by SMEs as a Recipients & as Suppliers. – kindly go through, comment & share.

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January 2021