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Studycafe | Dec 28, 2019 | Views 2328799

GST Return Defaulter – Last Opportunity for escaping penalty

GST Return Defaulter – Last Opportunity for escaping penalty

It Seems that CBIC is going to give some shakes to GST Return Defaulters.

First, GST Department has issued Circular No – 129/48/2019 –GST to penalize these defaulters. The provisions of this circular are so strict that the taxman can freeze your bank account if you have not filed your GST Return.

Now there is another news from the department. Late fee on GSTR 1 will be applicable from 11.01.2010 of at least Rs 50 per day will be charged for non-filing of GSTR-1.

As a one time measure, late fees on GSTR 1 is waived by CBIC till 10 January 2020, beyond which a late fee of at least Rs 50 per day will be charged for non-filing of GSTR-1.


After 10.01.2020 GSTR 1 Late Fees to be applicable from December 2019 amounting to Rs. 50 per day for non-filing of GSTR-1 up to a maximum of Rs. 10,000 per statement will be levied as per existing provisions. Therefore, the taxpayers are requested to clear any backlog with respect to GSTR-1 by 10.01.2020.

Another news is that, the government has amended rule 36, sub-rule -4 and replaced 20% figure with 10% figure w.e.f 1 January 2020.

According to this notification, now GST Registered dealers are restricted to take 10% Deemed Credit against missing invoices, which are not showing in their GSTR-2A. To avoid any hardship to genuine dealers, now the government is pushing all dealers to file their GSTR-1 on a timely basis so that corresponding credit is shown in GSTR-2A of purchasing dealers so that the cash flow of any dealer is not affected at any time.

From the above discussion, it is concluded that the GST Department is now taking all strict action against the GST Defaulters. It is suggested that, if you are GSTR-1 Return defaulter at any stage, then you must correct this error as soon as possible and save the late filing fee as it is the Last Opportunity for escaping penalty.

Further, now start maintaining all prescribed records under GST Law and file your GST Returns on a timely basis, otherwise case penal action will be very harsh.

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Tags : GST, GSTR-1 Late Fees

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