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NON-FILERS OF RETURNS - Handbook of GST Law & Procedures (CBIC) [October 2024] - GSTExtract 3. NON-FILERS OF RETURNS (I) Return is a important aspect of GST and is the base for the authority to keep track over the tax paid and input tax credit availed. Tax is said to have been paid only when the return is filed after making debits in the Electronic Credit Ledger and/or Electronic Cash Ledger, as the case may be. (II) A Non-filer is a person who is registered and is liable to file the GST return or statement periodically but has failed to do so within the due dates prescribed. There are chances that the non-filer has some liability of tax to pay, which he has not paid. (III) Section 46 of the CGST Act, 2017 read with Rule 68 of the CGST Rules, 2017 stipulates issuance of a notice in FORM GSTR-3A to a registered taxpayer, who fails to furnish return under Section 39 or Section 44 or Section 45 of CGST Act, 2017 (GSTR-3B, GSTR-4, GSTR-5, GSTR-6, GSTR-7, GSTR-8, GSTR-9 and GSTR-10) asking him to furnish such return within fifteen days. (IV) If the registered person fails to furnish return even after notice in FORM GSTR-3A is issued then for such cases, Section 62 of CGST Act, 2017 provides for assessment of non-filers of return on best judgement basis. (V) CBIC has issued Circular No. 129/48/2019 dated 24.12.2019 laying down the guidelines to deal with the cases of non-filers and for the purpose of maintaining uniformity. The said Circular prescribes the following guidelines on the issue of non-filers- (i) A system generated message would be sent to all the registered taxpayers 3 days before the due date to remind them about filing of the return for the tax period by the due date. (ii) Once the due date for furnishing the return under Section 39 is over, a system generated mail / message would be sent to the authorized signatory as well as the proprietor/partner/director/karta, etc. of all the defaulters immediately after the due date to the effect that he has not furnished his return for the said tax period. (iii) Five days after the due date of furnishing the return, a notice in FORM GSTR-3A in terms of Section 46 of the CGST Act, 2017 read with Rule 68 of the CGST Rules, 2017, shall be issued electronically through common portal to such registered taxpayer who fails to furnish return under section 39, asking him to furnish such return within fifteen days. (iv) In case the return is still not filed by the defaulter within 15 days of the notice, the proper officer may proceed to assess the tax liability of the said person under Section 62 of the CGST Act, 2017, to the best of his judgement taking into account all the relevant material which is available or which he has gathered and will issue order under Rule 100 of the CGST Rules, 2017 in FORM GST ASMT-13. (v) The proper officer has to upload the summary thereof in FORM GST DRC-07 . (vi) For the purpose of assessment of tax liability, the proper officer may take into account the details of outward supplies available in the statement furnished under Section 37, i.e. 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 under Section 71. (vii) In case the defaulter furnishes a valid return within thirty days of the service of assessment order in FORM GST ASMT-13 , the said assessment order shall be deemed to have been withdrawn in terms of provision of sub-section (2) of Section 62 of the CGST Act, 2017. However, if the return remains unfurnished within the statutory period of 30 days from issuance of order in FORM GST ASMT-13 , then proper officer may initiate proceedings under Section 78 and recovery under Section 79 of the CGST Act, 2017. (viii) In appropriate cases, based on the facts of the case, the Commissioner may resort to provisional attachment to protect revenue under Section 83 of the CGST Act, 2017 before issuance of FORM GST ASMT-13 . (ix) Further, the proper officer would initiate action under Section 29(2) of the CGST Act, 2017 for cancellation of registration in cases where the return has not been furnished for the period specified in Section 29. (VI) FORM GSTR-3A contains notice for best judgment assessment. Hence, no separate notice is required to be issued for best judgment assessment under Section 62 of CGST Act, 2017. In case of failure to file return within 15 days of issuance of FORM GSTR-3A, the best judgment assessment in FORM ASMT-13 can be issued without any further communication. (VII) The proper officer is required to upload the summary in FORM GST DRC-07.
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