Composite dealer non gst returns filed period

Hey Kollipara! Here’s the clarity on your query about Composite Dealer not filing CMP-08 for certain quarters and GST department notice:

Situation Recap:

• Composite scheme dealer with turnover ~₹12 lakhs each quarter.

• CMP-08 filed only for April-June 2021.

• No CMP-08 filed for subsequent quarters.

• GST department issued notices for July 2021 to June 2022 quarters with tax and penalty demands.

Your Questions:

Does the dealer have to pay the tax and penalty mentioned in the notices compulsorily?

Explanation and Guidance:

1. Tax Liability on Non-Filing of CMP-08

   • CMP-08 is the quarterly return for Composite Scheme dealers to pay GST at the fixed rate on turnover.

   • If CMP-08 is not filed for any quarter, the dealer is still liable to pay the applicable GST tax on turnover for that quarter.

   • Since dealer turnover is ₹12 lakhs each quarter, tax of ₹12,000/- per quarter (assuming 1%) is due and payable.

2. Penalty for Non-Filing

   • As per GST law, failure to file returns attracts late filing fees/penalties.

   • The GST department can also levy penalties for non-compliance.

   • Penalties can include late fees of ₹50/day (CGST) + ₹50/day (SGST) subject to a maximum limit, plus possible additional penalties if deliberate evasion is suspected.

3. Compliance & Payment

   • The dealer should comply with the notices by:

     • Filing the pending CMP-08 returns immediately for all missing quarters.

     • Paying the tax dues plus interest and penalty as per the notice or as calculated in the return.

     • Ignoring notices or defaults can lead to further penalties and even prosecution.

4. Is there any Relief?

   • If delay is genuine, dealer can request waiver/reduction of penalties by filing a representation with the GST authorities, but tax and interest are still payable.

   • Timely voluntary compliance reduces the chance of harsher penalties.

Summary:

Yes, the dealer is compelled to pay the tax and penalty as per the GST notice for those quarters.
The best course of action is to:

• File all pending CMP-08 returns immediately.

• Pay the demanded tax, interest, and penalties.

• Communicate with the GST authorities if you want to request penalty waiver on genuine grounds.