In Circular No.129/48/2019 GST dt. 24.12.2019, Board issues the clarifications and guidelines regarding appropriate procedure to be followed in case of Non-furnishing of return u/s-39 (Return) or Sec-44(Annual Return) or Sec-45(Final Return) of CGST Act,2017.
As per Sec-46 of CGST Act read with Rule-68 of CGST Rules 2017,
- requires issuance of a notice
- in FORM GSTR-3A
- to a registered person,
- who fails to furnish return u/s-39(Return)/Sec-44(Annual Return)/Sec-45(Final Return) (as defaulter )
- requiring him to furnish such return
- within 15 days.
Further section 62 provides for assessment of non-filers of return of registered persons, who fails to furnish return u/s-39 or 45 even after service of notice u/s-46.
- As such, no separate notice is required to be issued for best judgment assessment u/s-62
- in case of failure
- to file return
- with in 15 days of issuance of FORM GSTR-3A,
- the best judgment assessment in FORM ASMT-13
- can be issued without any further communication.
Board issues following guidelines to ensure uniformity in implementation of the provisions of law across the field formations -
- a system generated message be sent to all registered persons 3 days before the due date to nudge them about filing of return for tax period by due date.
- Once due date for furnishing return u/s-39 is over,
- a system generated mail/message be sent to all defaulters,
- immediately after the due date
- to the effect that said registered person
- has not furnished his return for said tax period;
- said mail/message is to be sent to authorized signatory as well as proprietor/partner/director/karta etc.
- 5 days after due date of furnishing the return,
- a notice in FORM GSTR-3A be issued,
- to such registered person,
- who fails to furnish return u/s-39,
- requiring him to furnish such return within 15 days;
- If said return is still not filed by defaulter
- within 15 days of said notice,
- proper officer may proceed to assess the tax liability of said person u/s-62 of CGST Act,
- to best of his judgement and
- would issue order in FORM GST ASMT-13.
- Proper officer be required to upload the summary in FORM GST DRC-07;
- For the purpose of assessment of tax liability u/s-62 of CGST Act, Proper officer may take into account
- details of outward supplies available in statement furnished u/s-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 u/s-71;
- If defaulter furnishes a valid return
- within 30 days of service of assessment order in FORM GST-ASMT-13,
- said assessment order shall be deemed to have been withdrawn in terms of provision of section 62(2) of CGST Act.
However, if said return remains unfurnished
- within statutory period of 30 days from issuance of order in FORM ASMT-13,
- then proper officer may initiate proceedings u/s-78 and
- recovery u/s-79 of CGST Act;
Above general guidelines may be followed by proper officer in case of non-furnishing of return. In deserving cases, based on the facts of the case, Commissioner may resort to provisional attachment to protect revenue u/s-83 of CGST Act before issuance of FORM GST ASMT-13.
Further, proper officer be initiated action u/s-29(2) of CGST Act for cancellation of registration in cases where return has not been furnished for the period specified in section 29.
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