Current context: Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance has issued Standard Operation Procedure (SOP) to deal with non-filers of GST returns.
- As per the SOP, the non-billing of GST (Goods & Services Tax) returns may lead to attachment of bank accounts and even cancellation of registrations.
- After the due date of return, a system-generated message or mail will be immediately shared with GST defaulters.
- 5 days later a notice will be issued in Form GSTR 3A asking the GST payer to file the return or make payment within 15 days.
- After 15 days, if the return is not filed, the proper officer may proceed to assess the tax liability of the person to the best of his judgment and would issue an order under Rule 100 of the CGST Rules in Form GST ASMT-13.
- Form GST ASMT 13 will be deemed as withdrawn if the defaulter has filed the GST return
- The process of cancellation of registration may be initiated if the return is not filed within the time prescribed under Section 29 of the CGST Act that includes:
- A composition scheme assessed not filing returns for three consecutive tax periods.
- A non-composition assessed not furnishing returns for a continuous period of six months.
- Not commencing business within six months of the voluntary registration, obtaining registration by fraud, and willful misstatement or suppression of facts.
