GSTN Operationalises Online Mechanism for Unbarring GST Returns After Prolonged Default

The Goods and Services Network (GSTN) has operationalised a new facility called “Application for Unbarring Returns” on the GST portal. This facility has been made available for the taxpayers who are not able to file their GST returns because the system has blocked them due to continuous non-compliance. This online mechanism will help them unblock barred GST returns and furnish online requests for the same.

As per Rule 59(6) of the CGST Rules, read with Sections 39 and 47 of the CGST Act, if a taxpayer does not file GST returns for a continuous time period of three years, the GST portal automatically bars the taxpayer from filing further returns. This is a system-driven restriction and happens without any separate notice.

Once this barring is triggered, the affected return period becomes non-editable on the GST portal. In simpler words, the taxpayer, after that, is restricted from opening and filing the pending returns. Even if the taxpayer voluntarily wants to comply later, the GST system does not permit the taxpayer to file until the bar is removed.

Therefore, to resolve this issue, GSTN has enabled an online application process for such taxpayers, using which they can unblock their returns. Taxpayers can visit the official GST portal and go to Services → Returns → Application for Unbarring Returns. Thereafter, file an application requesting to unbar returns and clearly specify the reason why returns were not furnished for such a long period.

While filing the application, make sure the application is routed to the Jurisdictional Assessing Office, as the request is not approved automatically. After submission, the application is sent electronically to the Jurisdictional Assessing Officer (AO). Then, AO examines your application and the reason reported; upon satisfaction, the AO may approve unbarring. Once approved, the barred return becomes available for filing on the GST portal.