Standard operating procedure laid down to police non-filers of GSTR-3B

CBIC on 24 December 2019 laid down a standard operating procedure for the filing of GSTR-3B. CBIC circular 129/2019 specifies timelines for actions of the taxpayers and tax officers. The process applies to the filing of GSTR-9 and GSTR-10 returns too.

The circular states that the department will nudge taxpayers to file GSTR-3B at various stages. The first communication will be sent three days before the due date as a reminder through email to all registered persons. After the due date has passed, the second email will be immediately initiated by the system to those who have not filed the GSTR-3B by the due date. The email will be sent to the authorised signatory, including the proprietor/partner/director/Karta. 

The notice is GSTR-3A will be sent five days after the due date by electronic means. A time limit of fifteen days is provided to such defaulting taxpayer to furnish the GSTR-3B returns. The tax officer will proceed to best judgement assessment for the tax period in case the taxpayer fails to comply within the notice period.

Under the best judgement assessment, tax officer having jurisdiction over the registered person assesses such person’s GST liability based on the relevant material on hand or gathered by him.

Also Read: More Conditions laid down to claim ITC in GSTR-3B by CBIC

These include e-way bills generated by or in the GSTIN of the registered person, supplies declared in GSTR-1 returns filed for the tax period. It further includes input tax credit as per the auto-populated GSTR-2A and any information obtained from any third person or by inspection. Accordingly, he will issue an order in form ASMT-13 to the registered person. The summary thereof is uploaded in form DRC-07.

The defaulting taxpayer may either furnish the GSTR-3B return or not for such tax period. In case the taxpayer submits the GSTR-3B within thirty days of issuing the order in ASMT-13, the order is withdrawn. No proceedings shall be initiated. However, the requisite interest for the delay in paying tax should be deposited along with the tax liability.

On the other hand, if the registered person fails to file returns within thirty days, the tax officer can initiate recovery proceedings. He may also resort to the provisional attachment of the estate of the taxpayer if circumstances warrant to do so.

The tax officer may also proceed to cancel the GST registration of the taxpayer from such date he considers fit.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in