gst return filing Archives - Business , Financial & Legal Consultant In India

January 4, 2022January 4, 2022

What are the Ramifications of Not Filing GSTR 3B?

The GST bill was first introduced by the Union Government on 1st July, 2017. The Goods and Services tax was introduced as an indirect tax reform in India by amalgamating various indirect taxes into one tax. Under the GST law, a registered taxpayer is required to file a number of GSTR forms. In this article we shall discuss one such form called GSTR 3B and will also understand the ramifications of not filing the same.

What is GSTR 3B?

GSTR 3B is a form which should be filed by a regular GST taxpayer. This return form comprises a summary of details of the outward supplies made and the details of the input tax credit. Generally this form should be filed by 20 of the next month, but the government can extend its filing date if they want to.

GSTR 3B- Consequences of not filing the GSTR 3B Form

Late Fees (Section 47 CGST Act 2017)

One of the consequences which can be faced by the taxpayer is levy of late fees penalty for not filing GSTR 3B. The late fees will grow each day until it reaches the capped limit. Further you are not allowed to file your return until you pay the late fees.

Levy Of interest (Section 50)

In case the taxpayer is required to pay the tax within the stipulated given date and he failed to do so then interest at the rate of 18% shall be levied for such delay in payment. The interest shall be payable if you use cash ledger balance to pay tax.

Restriction of E-way Bill Generation (Section 138E)

In case a person fails to furnish returns for a consecutive two tax period, then a restriction shall be placed on the generation of e-way bill for all types of outward supply of that person. When the return is filed then, such restrictions shall be removed.

e-way bill restriction will cause restriction of outward supply valued more than 50k outside the state and outward supply of specific value notified by the State government inside the state.

Penalty of Not paying of tax amount collected within 3 months

In case of specified offenses, penalties are placed under the GST law. Penalty will be levied if tax is not paid even after 3 months from the due date. The penalty in such a case will be equal to the tax amount collected subject to a minimum of 20,000.

Suspension and cancellation of GST Registration (section 29(2))

In case a regular taxpayer fails to file the return for a period of six months continuously, then the gST registration of suc person shall be liable to be cancelled. However, before the registration is terminated, the officer will issue a notice requiring a clarification and such person must respond within 7 days by providing a reason that why his registration should not get cancelled. In case the offer is not satisfied with the reply then he will initiate the cancellation process and GSTIN will be suspended.

Recovery Proceedings (Section 79)

Not filing form GSTR 3B can lead to initiation of recovery proceedings however, before such initiation, notices and reminders must be served. The following procedure is followed:

The first reminder will be sent 3 days before the due date;
The second reminder is sent immediately after the due date;
A notice shall be sent 5 days after the due date asking the person to file return in 15 days;
If, after the 15 days period, return is still not filed, then the officer can proceed for assessment. The officer will calculate the tax liability. An order would be issued in ASMT 13, and summary will be uploaded in Form DRC 07[1].
Once the order is served, 30 days after that, the officer shall initiate the recovery proceeding and actual recovery under section 79.

Restriction on Input Tax Credit Of Recipients

In order to claim input tax credit the payment of tax to the government by the supplier on supplies is required. If GSTR 3B is not filed then it may be assumed that the supplier is yet to pay taxes. However, there are exceptions to it.

Conclusion

GSTR 3B is a tax form which should be filed by a regular taxpayer. As a regular taxpayer one must file its return without fail. Hee are various forms which are needed to be filed by the taxpayer, that is it is always recommend to seek assistance of an expert who would help you in filing of GSTR form.

August 2, 2020August 2, 2020

GST Penalties and Appeals

The GST Law has defined its offenses and penalties that are levied in each scenario. This is an important topic for every business owner, CA, CS as any mistake can cause severe consequences.

Overview

GST law prevents many tax evasion and corruption over tax as it contains strict provisions for offenders regarding penalties, prosecution and arrest. The introduction of GST Law Government of India ensures to prevent tax evasion and corruption and also introduces stricter liabilities for the non-payment of the same.

Offences and Penalties

Offenses

There are 21 offences which are being introduced under GST law. Some of the offences which has been introduced by the introduction of GST law are as follows-

When the company/organization or an individual has not enrolled themselves under GST Law, even when it is required by law.
Supply of any goods/ services without any invoice or issuing a false invoice.
The issue of invoices by a taxable person using the GSTIN of another bonafide taxpayer.
Submission of false information without getting registered under GST Laws.
Submission of fake financial records/ documents or files,or fake returns to evade tax.
Obtaining refunds by fraud.
Deliberate suppression of sale to evade tax.
Opting for a composition scheme even though a taxpayer is ineligible.

Penalty

If any of the offense is committed by a taxpayer, then he is liable for the penalty which he has to pay under GST. the principals on which these penalties are based are mentioned by law.

For Late Filing

If returns of GST are filed late i.e. after the last date of filing, then it would involve a penalty of Rs. 100 per day as per the Act. So it is 100 under cgst and 100 under sgst so, total late fee would be levied of Rs. 200/- per day along with the interest of 18% per annum. The time period will be from the next day of filing of the date of payment.

For not filing

If you are not filing your GST return, then it will have a cascading effect as you will not be able to file your subsequent returns and therefore it involves heavy penalty and fines.

For the 21 offenses with no intention of fraud or tax evasion

If the offender is not paying the tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000/-.

For the 21 offense for the intention of fraud or tax evasion

In this case the offender has to pay 100% penalty for tax evasion subject to a minimum of Rs, 10,000/-. The tax evader could be imprisoned for a term of 1 year for tax amount 100-200 lakhs, upto 3 years for 200-500 lakhs and upto 5 years for the tax amount of 500 lakhs and above.

Inspection under GST

The Joint commissioner of CGST and SGST may have reasons to believe hat in order to evade tax, a person has suppressed any transaction or claimed excess input tax credit etc. then the joint commissioner can authorize any other officer of CGST/SGST in writing to insect places of business of the suspected evader.

Search and Seizure under GST

The joint commissioner can order for search and seizure if he finds any person liable for tax evasion on the basis of the inspection.

Goods in Transit

If a person in charge is carrying goods exceeding 50,000/- is required to carry the following documents-

Invoice or bill or delivery challan
Copy of e-way bill

Compounding of offences under GST

Compounding offenses is a shortcut method to avoid litigation. In case of prosecution each time of hearing in criminal proceedings a person has to appear before a magistrate along with his advocate which is little time consuming process.

In compounding offence, the accused is not required to appear personally and can be discharged on payment of compounding fee which cannot be more than the maximum fine as applicable under GST.

Prosecution under GST

If someone has committed crime under GST law deliberately, then he is subject to criminal prosecution under the law. A few example of these offenses are follows-

Issue of an invoice without supplying any goods and services
Obtaining refund of any CGST/SGST by fraud
Submitting fake financial records/ documents or files and fake returns to evade tax.
Helping another person to commit fraud under GST.

Arrest under GST Law

Any person accused of committing a cognizable offense is entitled to get arrested within 24 hours of the offense. Then he is to be produced before the Magistrate within 24 hours of the arrest.

Appeal

Any person aggrieved by the decision of tribunal or court may appeal in the appellate court. If the person is aggrieved by the decision of fit appellate authority then he could appeal in the National Appellate Tribunal and then to the High court and Supreme court thereafter.

July 25, 2018

How to file GST return in India?

After the introduction of GST in India from 1 st July, 2017, every registered taxpayer is required to file GST return in order to avoid levy on hefty penalty and fines. In this blog we will explain every aspect of GST returns including the meaning of GST returns, their type and procedure to file GST returns.

‘One Nation One Tax’ is the basic motive behind the introduction of GST regime in India. With the introduction of GST in India, the Government of India has made an attempt to streamline the taxation system of the country. Under the GST regime, the detailed information regarding the transactions is required to be submitted by the registered taxpayers. Moreover, under the new regime more stringent compliances are prescribed to avoid tax evasion. To ensure that the taxpayers are compliant with the regulations made the provision of hefty penalty and fines are also made by the Government.

To promote the ease of doing business in India the Ministry of Finance has developed a widespread IT system facilitating the recording of invoices and data of taxpayers at one place.

Further, under the GST regime, the taxpayers can easily obtain GST Registration, file returns and upload invoices on the online portal of Goods And Service tax.

What is GST return?

GST return is a document containing the details of sales and purchase undertaken by taxable person. Every specified person is required to file GST return with the department before the specified due date. the concept of GST returns has been crafted to make sure that all the transactions match with each other and there is no transaction left unnoticed.

There are multiple types of GST returns depending upon the category of taxpayer that is required to be filed by the registered taxpayer. Let us take a brief look at them.

For the normal taxpayers:

GSTR-1:- this return shall be submitted to provide the details of outward supplies of taxable goods or services affected during the previous month. The return should be filed by 10 th of succeeding month.

GSTR-2A:- it will be auto generated, and made available on 11 th of the succeeding month for the recipients to see and validate the information therein. The recipients are empowered o make any modification or amendment based on their books of accounts from 11 th to 15 th of succeeding month.

GSTR-2:- this return is the culmination of all inward supply of goods and services as approved by the recipients of the services. This form is required to be filed by 15 th of the next month. The details of GSTR-2A will be auto-populated into it.

GSTR-1A:- after filing GSTR-2 on the 15 th of the subsequent month, the details in the GSTR-1A will be auto generated. It will contain the details of all the modifications made. The supplier shall have the choice to accept or reject the changes made by the recipient. If the supplier accept the changes then GSTR-1 will stand revised.

GSTR-3:- Through this return the details of all outward as well as inward supply of goods and services as filed in GSTR-1 and GSTR-2 are furnished. The tax liability and input tax credit availability will be determined by GSTN after considering the details of both the months.

GSTR-3A:- through this return, a notice will be given to the person who fails to furnish the return within due dates. It will be generated after the 15 days from the default.

GSTR-9:- every registered taxpayer is required to file GSTR-9 by 31 st December of the succeeding month. It is a sum up of all 12 monthly GSTR-3 filed by the taxpayer and will contain the details of tax paid during the year along with the details of import and export.

GST ITC-1:– after the details filed under GSTR-3 are fully accepted, then final input tax credit shall be communicated through form GST ITC-1. The details of ITC-1 should be confirmed in due time to avail the credit for that month. If the same is not done in due time, then it will disallow the credit of the month and will be computed as a tax liability for the month instead.

GST returns to be filed by composite taxpayers:

GSTR-4A:- every taxpayer who is registered under he composition scheme is liable to file a quarterly return in GSTR-4A. it will contain the details of inward supplies as reported by suppliers in GSTR-1.

GSTR-4:- through auto generated details of GSTR-4A, the taxpayer can furnish all his outward supplies here. It will also contain the details of tax payable. It is required to be filed on quarterly basis and 18 th of the subsequent month.

GSTR-9A:- every composite taxpayer is required to file annual return by 31 st December of the subsequent fiscal year. It will contain the consolidated details of the quarterly returns filed along with the details of tax paid.

GST return to be filed by non- resident taxpayer:

GSTR-5:- every non resident taxpayer is required to file GSTR-5 containing the particulars of outward supplies, imports, tax paid, input tax availed and remaining stock. The due date for filing GSTR-5 is 20 th of the subsequent month or if the registration is given up, then within the 7 days within the expiry of registration.

Procedure to file GST return:

For filing the GST returns you can simply visit the official site of GST, login to your account, and simply upload the details of your invoices. If you are facing any kind of problems in filing your GST return you can easily get it filed by our BIAT Consultant. One important thing to be noted here that it is very important to take utmost care while filing the return and file correct returns.

BIATConsultant is leading consultant in India providing GST Registration online and online GST return filing .