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CBIC issues Standard Operating Procedure for Non-Filers of GST Returns

  • Jan 10, 2020 | Viren Shah

GST law provides for mandatory filing of returns either on a monthly or quarterly basis by registered taxpayers. As such, an Input Service Distributor will be required to file monthly returns showing details of credit distributed during a particular month. Taxpayers who are required to deduct/collect tax will also have to file monthly returns showing the amount deducted/collected and other specified details.

The Central Board of Indirect Taxes and Customs (‘CBIC’) has noticed that divergent practices are being followed in case of non-furnishing of the GST returns.

The GST Council, in its 38th council meeting, decided to issue a Standard Operating Procedure (‘SOP’) for the Revenue Authorities to take action against non-filing of respective returns.

In order to clarify the issue and to ensure uniformity in the implementation of the provisions under GST law across field formations, the CBIC issued Circular No. 129/48/2019-GST dated December 24th 2019, providing the procedure to be followed by the Revenue Authorities.

Given below is a summary of the Circular:

  •  A system generated message would be sent to all registered persons 3 days before the due date of filing returns.
  • Once the due date for filing GSTR-3B passes, a system generated email or message would be sent to all defaulters (i.e. to all the authorised persons as well as the director / partner / proprietor, etc.).
  • 5 days after the due date of furnishing the return, a notice in GSTR-3A shall be issued electronically to all the defaulters asking them to furnish such return within 15 days.
  • If the said return is not filed within 15 days, the Revenue Authorities may start to assess the tax liability on best judgement basis taking into account the information available / gathered and issue order in GST ASMT-13. The Revenue Authorities would then be required to upload the summary in GST DRC-07.
  • In order to assess the aforesaid tax liability, the Revenue Authorities may take into account the details of outward supplies as per GSTR-1, details of inward supplies auto-populated in GSTR-2A, information available from e-way bills, or any other information available from any other source including inspection at business premises.
  • If a valid return is furnished within 30 days of the service of aforesaid assessment order, the said assessment order shall be deemed to have been withdrawn. Else, recovery proceedings could be initiated.
  • In certain cases, the Commissioner may resort to provisional attachment of property to protect revenue, before issuance of order in GST ASMT -13. S/he may also proceed to cancel the GST registration of the taxpayer from such dates s/he considers fit.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Viren Shah
Avalara Author Viren Shah
Viren Shah, a member of the Institute of Chartered Accountants of India and a Bachelor of Commerce from Mumbai University, has experience of more than a decade in Corporate and International Taxation. He specializes in Domestic and International Taxation, with specific emphasis on cross border transactions and exchange control laws with respect to inbound and outbound investments. He has vast experience in advising companies across various industries.