GST Returns not filled under composition scheme
This query is : Resolved
24 June 2025
what if gst return not filed for 5 years return of composition scheme
12 August 2025
1. Consequences of non-filing of GST returns under Composition Scheme
Late fees and penalties:
For each return not filed, a late fee of ₹200 per day (₹100 CGST + ₹100 SGST) is levied, capped at 0.25% of the taxpayer’s turnover in the state.
Interest on tax due:
If tax was payable (composition tax), interest at 18% per annum is charged on the amount of tax not paid.
Cancellation of registration:
The tax department may cancel your GST registration if returns are not filed for a continuous period of 6 months or more.
Loss of Composition Scheme benefits:
You may be disqualified from continuing in the composition scheme and may have to pay tax at regular rates with interest and penalties.
2. Steps to rectify
File pending returns immediately:
File all pending returns for the 5 years (if possible, through the GST portal’s offline utility or by consulting a GST expert).
Pay all outstanding tax, interest, and late fees:
Calculate and pay tax dues along with interest and penalty to avoid further actions.
Apply for revocation of cancellation (if registration is canceled):
If your GST registration is canceled due to non-filing, you can apply for revocation within 30 days from cancellation.
Consult tax professional:
For such prolonged non-compliance, expert assistance is advisable.
3. Important Notes
The GST portal does not allow filing returns beyond a certain time limit, so you may need to approach the GST department through a legal remedy or file refund/recovery applications.
The department may initiate prosecution or recovery actions for prolonged default.
Late fees and penalties:
For each return not filed, a late fee of ₹200 per day (₹100 CGST + ₹100 SGST) is levied, capped at 0.25% of the taxpayer’s turnover in the state.
Interest on tax due:
If tax was payable (composition tax), interest at 18% per annum is charged on the amount of tax not paid.
Cancellation of registration:
The tax department may cancel your GST registration if returns are not filed for a continuous period of 6 months or more.
Loss of Composition Scheme benefits:
You may be disqualified from continuing in the composition scheme and may have to pay tax at regular rates with interest and penalties.
2. Steps to rectify
File pending returns immediately:
File all pending returns for the 5 years (if possible, through the GST portal’s offline utility or by consulting a GST expert).
Pay all outstanding tax, interest, and late fees:
Calculate and pay tax dues along with interest and penalty to avoid further actions.
Apply for revocation of cancellation (if registration is canceled):
If your GST registration is canceled due to non-filing, you can apply for revocation within 30 days from cancellation.
Consult tax professional:
For such prolonged non-compliance, expert assistance is advisable.
3. Important Notes
The GST portal does not allow filing returns beyond a certain time limit, so you may need to approach the GST department through a legal remedy or file refund/recovery applications.
The department may initiate prosecution or recovery actions for prolonged default.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst on travel by air for business purposes
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- F&O reporting in ITR
- Taxation on Old jewellery sold
- Loss of interest in PF transfer from EPFO to Trust
- Short Term Gain Reporting ITR
- Query regarding reporting of exempt foreign remuneration in ITR
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- U/S 194 T
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
