Circular for monthly return non filers

Last Updated On: Dec. 24, 2019, 11:34 p.m.

The New return filing mechanism under GST Regime is expected to start from 01.04.2020, whether it is the recent notification related to the Mismatched ITC limit or the Circular issued today by the Department for handling the non-filers of monthly returns. This move was required as the GST revenue collection is on the decline along with the increase in the count of GSTR-3B non-filers 












Source : PIB

For a Regular registered taxpayer, there is a requirement to file GSTR-3B as a monthly return and even if there is no transaction, still the filing is mandatory under GST.  Currently, the late fee is levied for non-filing of GSTR-3B but the same will start getting levied for GSTR-1 within upcoming months. 

Interest/late fees to be paid

Interest is 18% per annum. It must be calculated by the taxpayer on the amount of outstanding tax to be paid. It shall be calculated on the Net tax liability identified in the ledger at the time of payment. The time period will be from the next day of filing due date until the actual date of payment.

As per the GST Act, the late fee is Rs. 50 per day per Act. So, it is 25 under CGST & 25 under SGST. The total late fee per day will be Rs. 20/day if there is no transaction (Nil return). The maximum is Rs. 5,000. There is no late fee on IGST.

The department has observed that many of the taxpayers were GSTR-3B with a lot of delays, so in order to tap the non – filers in the 38th meeting of the GST council meeting has issued standard operating procedures for tax officers to act against non-filing of GST returns.

Accordingly following is to be implemented by the department

A system-generated message would be sent to all the registered persons 3 days before the due date to remind them about the filing of the return for the tax period by the due date.

Once the due date for furnishing the return under section 39 is over, a system-generated mail/message would be sent to all the defaulters immediately after the due date to the effect that the said registered person has not furnished his return for the said tax period

Five days after the due date of furnishing the return, a notice in FORM GSTR-3A (under section 46 of the CGST Act read with rule 68 of the CGST Rules) shall be issued electronically to such registered person who fails to furnish return under section 39, requiring him to furnish such return within fifteen days;

In case the return is not filed even after 15 days of service of Notice, the proper officer may proceed to assess the tax liability of the defaulter to the best of his judgment (Section 62 of the CGST act) basing on all relevant material (GSTR 1, 2A, e-way bills and any other information available from any other source) gathered by him/her and issue order in Form 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 if the return is filed with 30 days of the service of Assessment order. However, if the said return remains unfurnished within the statutory period of 30 days from the issuance of an order in FORM ASMT-13, then the proper officer may initiate proceedings under section 78 and recovery under section 79 of the CGST Act;

The CBIC also directed to follow guidelines by the proper officer in case of non-furnishing of return. In deserving cases, based on the facts of the case, the Commissioner may resort to the provisional attachment to protect revenue under section 83 of the CGST Act before issuance of FORM GST ASMT-13.

It is crystal clear based on this circular that the department wants to bring a sense of discipline amongst the non-filers of GST returns.


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