The Central Board of Indirect Taxes and Customs had issued guidelines on the Operating Procedure that is required to be followed by the tax officers against the Non-Filers of GST Returns.
After noticing that diverse actions have been carried out against non-filing of respective returns, CBIC had decided to resolve the difference and make certain the consistency in the application of the legal provisions all over the field formations through issuing Standard Operating Procedure.
This Standard Operating Procedure referred towards the clarification and guidelines that is required to be followed by the tax officials with respect to the non-filing of returns and were issued by CBIC, while it is exercising the powers stated under section 168 (1) of the CGST Act.
As per these guidelines, a tax official is required to issue a notice towards a registered person who had failed to file the return under section 39 or under section 44 or under section 45. This notice shall be issued under section 46 of the CGST Act along with Rule 68 of the Central Goods and Services Tax Rules, 2017 as well as in form GSTR-3A in the direction of intimating the non-filers to file the return within 15 days of notice. Also, section 62 demands the assessment of non-filers of return of a registered person who had failed to file the return under section 39 or under section 45 even when the notice is issued under section 46. A format of FORM GSTR-3A was also released by the CBIC.
The CBIC had also notified that there is no requirement to issue a separate notice for the best judgement assessment under section 62 and the same could be issued in form ASMT-13, when the non-filer again failed to file the return within 15 days of issuance of notice in form GSTR 3A, without any added communication.
The guidelines which have been issued by CBIC comprise the issuance of a system-generated message towards all the registered persons 3 days before the last date to whistle them in the direction of filing the return before the deadlines. Accompanied by the before due dates notification, an auto-generated message shall be sent after the due dates as well towards the registered persons who had failed to file the return under section 39 to intimate them relating to their failure to file the held return for the specified time-frame. This mail or message shall be sent to the authorized signatory as well as also to the proprietor/partner/director/Karta, etc.
And after 5 days of the due date of filing GST return, a notice in form GSTR-3A (under section 46 of the CGST Act along with Rule 68 of the CGST Rules) would be re-issued towards the non-filer who had failed to provide the return under section 39, demanding the filing of such return within 15 days from the date of notice.
In case the defaulter again failed to fill the stated return within 15 days of the notice, then the officer might commence with the assessment of the tax liability of the non-filer under section 62 of CGST Act. The assessment officer would then gather all the relevant facts and figures and issue an order in form GST ASMT-13 under Rule 100 of the CGST Rules as well as upload its summary in form GST DRC07.
The pertinent information would be collected from the outward supplies provided in form GSTR 1 under section 37, e-way bills, auto-populated details of supply in form GSTR-2A as well as other sources which include the investigation under section 71.
The guidelines also specified that if a valid return is provided by the defaulter within 30 days of the assessment order in FORM GST ASMT-13, the assessment order would be deemed to have been cancelled under the proviso of sub-section (2) of section 62 of the CGST Act. However in case, the non-filer had failed to file the stated return within the statutory time-frame of 30 days from the date when the order has been issued in form ASMT-13, then the officer might act according to section 78 and start recovery under section 79 of the CGST Act.
The guidelines which were issued by the CBIC shall be followed by the officer if the non-furnishing of returns. In few stated cases, the Commissioner might utilize the provisional attachment towards securing revenue under section 83 of the CGST Act, if essential, before the issuance of form GST ASMT-13.
Moreover, the actions under sub-section (2) of section 29 of the CGST Act could be taken through the proper officer to revoke the registration when the return has still not been filed for the period as stated in section 29.
The contents of the guidelines which have been issued in the form of the circular by means of CBIC would be published and CBIC expects to be notified of any difficulties that might arrive in the application of the above guidelines.
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