Non filing / Late filing of GST returns - Late fees, Interest, Standard Operating Procedure (SOP) & Other Legal Procedures

Non filing or late filing of GST returns results several consequences such as late fees, interest, penalties etc. Non filing of GST returns for a long period may lead to cancellation of registration number. let's discuss some FAQs.

Is GST Return (GSTR) filing mandatory, if no transaction is made during any month or quarter ?
Yes. A registered taxpayer under GST law need to file GST returns as per their specified time (monthly/quarterly). Even if there is no transaction made, NIL return should be filed.

Can anyone file GST returns after due dates ?
Yes. Taxpayer can file GST returns after due date, but late fees & interest will be imposed.

What are the late fees for late filing of GST returns ?

For Normal / Regular Taxpayers

Return Types		Intra-state supply			Inter-state supply	Official notification
		CGST	SGST	Total Late Fees	IGST
GSTR- 1, 3B	Taxable Return	25/day	25/day	50/day	50/day	click here click here
GSTR - 1, 3B	Nil Return	10/day	10/day	20/day	N.A.
GSTR - 9	Annual Return	100/day	100/day	200/day	N.A.

 
 Composition Taxpayers

Return Types		Intra-state supply			Official notification
		CGST	SGST	Total Late Fees
CMP-08	Qtr. Statement	Interest applicable			click here
GSTR - 4	Taxable Return	25/day	25/day	50/day	click here
	Nil Return	10/day	10/day	20/day
GSTR – 9A	Annual Return	100/day	100/day	200/day

*The maximum late fees chargeable by the govt. is Rs. 5,000/- for each return.
*In case of Annual Return (GSTR 9, 9A) maximum late fees chargeable by the govt. is 0.25% of the turnover for the financial year.

What will happen for non filing of GST returns ?
GST department may take several steps for non filing of GST returns for a long period.

Notice issue:

GST department may issue notice in FORM GSTR 3A u/s 46 of CGST act to the GST Return defaulter. 

On receiving Notice in GSTR 3A, the defaulter has to file return with in 15 days from the date of notice along with penalty and late fees. The notice shall be deemed to have been withdrawn if the due return is filed by the taxpayer before issuance of assessment order.

If the taxpayer failed to file return with in 15 days, provisions of sec 62 will apply. The proper officer will access the tax according to his best judgement in FORM ASMT-13 using the information available with the department. He will not issue any further notice before starting of assessment. The proper officer would then be required to upload summary thereof in GST DRC 07 .The penalty will be applicable of Rs. 10,000/- or 10% of tax due, whichever is higher.

Cancellation of Registration:

According to sec 29 of CGST act the commercial tax officer may cancel the registration of a composition taxpayer's registration no. for non filing of returns for three consecutive tax periods and in case of regular tax taxpayer's if return is not filed for 6 consecutive months.

Blocking of E-way bill - E way bill for taxpayers who have not filed their GSTR-1 for two tax periods, shall be blocked.

Freeze Bank A/c - Department may also freeze bank accounts to recover the due taxes.

What is Standard Operating Procedure (SOP) ?

In the 38th GST Council meeting, a Standard Operating Procedure for tax officers have been issued in respect of action to be taken in cases of non filing of GSTR-3B returns.

Click here to read the official circular regarding Standard Operating Procedure

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