Central Board of Indirect Taxes and Customs(CBIC) issued a circular on 24th December 2019 to prescribe a standard operating procedure to be followed in case of non-filers of returns. Since there is a lack of clarity on how to proceed with non-filers and lack of uniformity in procedures, the Central Board of Indirect Taxes and Custom (CBIC), has come out with an SOP.
Highlights of the Circular:
GST Makes it mandatory on a registered person to file returns either monthly (normal supplier) or on a quarterly basis (Supplier opting for composition scheme). An ISD (Input Service Distributor) will have to file monthly returns showing details of credit distributed during the particular month. Due to lack of clarity in filing return, CBIC has issued the standard operating procedure as follows:
- A system generated message would be sent to all the registered persons 3 days before the due date to remind them about filing of the return for the tax period by the due date
- Once the due date for furnishing GSTR-3B return is over, a system generated mail / message would be sent to all the defaulters (authorized signatory as well as the director in case of company) immediately after the due date to the effect that the said registered person has not furnished his return for the said tax period.
- 5 days later a notice will be issued asking the GST payer to file the return or make payment within 15 days this notice is to be issued in Form GSTR 3A.
- If the defaulter does not file the return within 15 days of the issue of the notice, the proper officer may proceed to assess the tax liability of the person to the best of his judgment taking into account all the material available or which he has gathered and would issue order under Rule 100 of the CGST Rules in Form GST ASMT-13.
- 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days of the service of assessment order in FORM GST ASMT-13, the said assessment order shall be deemed to have been withdrawn.
- The proper officer would initiate action for cancellation of registration in cases where the return has not been furnished for the period.
- The Act clearly states that registration will not be cancelled without giving the person an opportunity of being heard.
Suitable trade notices are directed to be issued to publicize the contents of this Circular.
Click here to read the Notification.
