What if GST Annual Return is not submitted before due date

What if GST Annual Return is not submitted before due date

CA Pratibha Goyal | Nov 10, 2018 |

What if GST Annual Return is not submitted before due date

What if GST Annual Return is not submitted before due date | What if GST Audit is not done before due date | Consequences of failure to submit the annual return and not getting the accounts audited

Legal Text :

Section 46 of CGST Act 2017 is given below for your kind reference:

Where a registered person fails to furnish a return under section 39 or section 44 or section 45, a notice shall be issued requiring him to furnish such return within fifteen days in such form and manner as may be prescribed.

Section 47(2) of CGST Act 2017 is given below for your kind reference:

Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent. of his turnover in the State or Union territory.

Section 125 of CGST Act 2017 is given below for your kind reference:

Any person, who contravenes any of the provisions of this Act or any rules made there under for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.

Therefore Consequences of failure to submit the annual return and not getting the accounts audited are:

1. Notice to defaulters

A notice shall be issued to defaulter requiring him to furnish such return within fifteen days in such form and manner as may be prescribed.

2. Late Fee for delayed filing

Late fee of Rs. 100/- per day for delay in furnishing annual return in Form GSTR 9, subject to a maximum amount of quarter percent (0.25%) of the turnover in the State or Union Territory shall be imposed. Similar provisions for levy of late fee exist under the State / Union Territory GST Act, 2017.

Therefore it can be concluded that a late fee of Rs.200/- per day (Rs. 100 under CGST law +Rs. 100/- under State / Union Territory GST law) could be levied which would be capped to a maximum amount of half percent (0.25% under the CGST Law + 0.25% under the SGST / UTGST Law) of turnover in the State or Union Territory.

3. General Penalty for Contravention of Provisions

A General Penalty may extend to twenty-five thousand rupees has been provided under CGST Act. An equal amount of penalty under the SGST/UTGST Act would also be applicable. To sum up a penalty of up to Rs. 50,000/- (25000 under CGST Act + 25000 under SGST Act) could be levied.

Optional GSTR-9 Filing

Please note that it is optional for registered taxpayers having aggregate Turnover up to Rs. 2 Cr. to file GSTR-9. Also note that it is optional for registered taxpayers having aggregate Turnover up to Rs. 5 Cr. to file GSTR-9C or GST Audit.

As of now the Due date of submitting GST Annual Return and GST Audit for FY 2018-19 is 31st December 2020. Interestingly, Due date of submitting GST Annual Return and GST Audit for FY 2019-19 is also 31st December 2020. As of now there has been no news of an extension from the Ministry of Finance.

(The Author of this Article can be reached at [email protected])

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.In no event shall I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information. Please refer your consultant before relying on the provisions of this article.

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