Recently, on 24th December 2019, the Central Board of Indirect Taxes and Customs (CBIC) has issued the circular no. 129/48/2019 regarding the Standard Procedure for non-filers of GST returns. The salient features are as follows:
- A system-generated message would be sent to all the registered persons 3 days before the due of filling of the return.
- After the due date, the system will send an auto-generated mail/ message to all the non- filers whose returns have not to be filed within the due date specifying that the return has not been filled for the due date. The mail/ message shall be sent to the authorized signatory as well as proprietor/director/karta etc.
- After 5 days of due date for filing of the return, a notice in Form GSTR-3A shall be issued to the registered person who has failed to file the return specifying him the timeline of 15 days within which the return is to be made.
- In case the said return is not filed by the defaulter within the 15 days of the notice, then the proper officer shall issue the order under the rule 100 of the CGST rules in Form GST ASMT 13 to the best of his judgment taking into account all the information available like details of the outward supplies furnished in GSTR-1, details of supplies auto-populated in GSTR 2A, information available from e-way bills and other relevant information available with the proper officer.
- In case the defaulter files the return within the 30 days of the issue of the order, then as per the provision of section 62(2) of the CGST Act, the said assessment order in the Form GST ASMT 13 shall stand withdrawn.
- However, if the defaulter fails to file the valid return, then the proper officer may initiate proceedings under section 78 and recovery under section 79 of the CGST act. In deserving cases, the Commissioner may resort to provisionally attach to protect the interest of revenue as per the provisions of section 83 of the CGST Act before issuance of the Form GST ASMT 13.
- Also, the proper officer would resort to cancellation of GST registration in cases where the return has not been furnished for the period furnished in section 29.
- In resort of the measures mentioned in the circular, the Government is expecting the registered taxable persons to adhere to the compliance regarding the timely recovery of the revenue.