Procedure to be followed in case of Non-filers of returns

Kusum Gandhi , Last updated: 25 December 2019  

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.

Procedure to be followed in case of Non-filers of returns

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
  • and
  • 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 -

  1. 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.
  2. 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.
  1. 5 days after due date of furnishing the return,
  • a notice in FORM GSTR-3A be issued,
  • electronically,
  • to such registered person,
  • who fails to furnish return u/s-39,
  • requiring him to furnish such return within 15 days;
  1. 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;
  1. 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;
  1. 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.

Disclaimer: The contents of this article are solely for informational purpose. It does not constitute professional advice or a formal recommendation. No part of this article should be distributed or copied without express written permission of the author.

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Kusum Gandhi
Category GST   Report

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