TN Govt. issued Instructions on Assessment and Cancellation of Registration for Non-Filing of GST Returns

The Goods and Services Tax (GST) Department, Tamilnadu has issued guidelines addressing assessment and cancellation of registration in the event that GST returns are not filed for a continuous period of six months. The guidelines also fix up the duty on Territorial Deputy Commissioners and Territorial Joint Commissioners in the matter of supervising the return filings in assessment offices.

The GSTN System automatically initiates action under Section 46 when a registered taxpayer fails to submit their return by the deadline required by Section 39 of the TNGST Act, 2017, and a notice in accordance with Rule 68 of the TNGST Rules, 2017, is generated and electronically issued on the day before the last day of the month.

Hence, the responsibilities and procedures to be followed in respect of non-filers are reiterated as below:-

(I) Assessment of non-filers of Form GSTR 3B:-

(i) When a registered tax payer fails to file return under Section 39 of the TNGST Act, 2017, on the due date, action under Section 46, is initiated automatically by the GSTN System and a notice as per Rule 68 of the TNGST Rules, 2017, in FORM GST-3A is generated and issued electronically on the day preceding the last day of the month.

Hence, the following action has to be taken after the due date for filing return, till the date of generation of FORM GSTR-3A electronically.

(a) Proper Officer

Every Proper Officer has to contact the defaulter over phone for reminding to file the pending returns. E-mails shall be sent to the defaulter’s authorised signatory for the same purpose.

(b) Territorial Deputy Commissioners

The Deputy Commissioners shall personally watch the filing of returns by the top 100 tax payers of their respective zones contributing 90% of the Revenue and for any default in filing of such returns, the Deputy Commissioner concerned would be held responsible.

(c) Territorial Joint Commissioners

The Territorial Joint Commissioners shall closely monitor the progress of return filing by the top registered tax payer contributing 90% of the Revenue and see that the returns are filed in time.

(ii) The Registered tax payer on receipt of FORM GSTR- 3A, shall file the return within 15 days from the date of receipt of the said FORM GSTR- 3A notice. For those who file the returns within 15 days, the notice issued in FORM GSTR-3A shall be deemed to have been withdrawn. The details of defaulters who fail to file FORM GSTR-3B returns even after expiry of FORM GSTR-3A time limit, is reflected in the Proper Officer’s back office login.

(iii) The Proper Officer should initiate the task to take action under Section 62 of the TNGST Act, 2017, to assess the turnover under best of judgement taking in to account all the relevant materials available or gathered in respect of defaulting registered tax persons.

(iv) The assessment order in FORM GST ASMT-13 along with summary in FORM GST DRC-07 thereof shall be uploaded electronically. In respect of the assessment order passed under Section 62, it has been specifically stated that the said assessment order shall be deemed to have been withdrawn if the registered person furnishes a valid return within thirty days of service of the assessment order.

(II) Assessment of Non-filers of QRMP Return

In respect of QRMP return filers, a list of defaulters shall be prepared for non-payment of tax and they have to be persuaded by the Proper Officer for payment of tax for that month. When the QRMP Return filer, fails to file return in FORM GSTR 3B for two consecutive tax period, action under Section 62 of the TNGST Act 2017, has to be initiated. The procedures followed in respect of regular filers has to be undertaken in respect of QRMP return filers also.

(III) Hence, the Proper Officer shall issue ASMT-13 along with DRC-07 in respect of non-filers who are contributing 90% of revenue and top 50 tax payers based on the revenue in previous financial year within 30 days of expiry of FORM 3A time limit. For ex. if FORM 3A is generated on 30th

October, then the issue of ASMT-13 in the above targeted cases shall be completed before 15th December.

(IV) The Proper Officer shall initiate recovery proceedings under Section 78 and recovery of tax under Section 79 of the TNGST Act 2017 for the above demand.

To Read Full Instructions Download PDF Given Below: