Standard Operating Procedure to be followed in case of non-filers of returns-reg.

Circular No.: 129/48/2019-GST
Date of Circular: 24th December 2019
Relevant Sections and Rules:

• CGST Act, 2017:
  • Section 39: Furnishing of returns
  • Section 44: Annual return
  • Section 45: Final return
  • Section 46: Notice to return defaulter
  • Section 62: Assessment of non-filers of returns
  • Section 71: Access to business premises
  • Section 78 & 79: Recovery of tax
  • Section 83: Provisional attachment
  • Section 29(2): Cancellation of registration
  • Section 168(1): Power to issue instructions
• CGST Rules, 2017:
  • Rule 68: Notice in FORM GSTR-3A
  • Rule 100: Assessment in FORM ASMT-13
  • Rule 142: Summary in FORM GST DRC-07

Summary of Circular:

This circular issues a Standard Operating Procedure (SOP) for officers to follow in cases of non-filing of returns under Sections 39, 44, or 45 of the CGST Act, to ensure uniformity across field formations.

1. Issuance of Notice (GSTR-3A):

• If a registered person fails to file returns under Section 39, 44, or 45:
  • A notice in FORM GSTR-3A is issued electronically under Section 46 and Rule 68.
  • It gives the defaulter 15 days to file the return.
  • No separate notice is needed for best judgment assessment under Section 62 if return is still not filed.

2. Communication Protocol and Timeline:

• 3 Days Before Due Date: System-generated alert nudging taxpayers to file returns.
• On Due Date Lapse: System-generated email/message to the authorized signatory and key persons.
• After 5 Days: FORM GSTR-3A is issued electronically.
• After 15 Days (if no return): Best judgment assessment is issued via FORM ASMT-13, followed by summary in FORM DRC-07.

3. Basis for Best Judgment Assessment:

• Officer may consider:
  • GSTR-1 (outward supplies)
  • GSTR-2A (auto-populated data)
  • E-way bill details
  • Data from inspections (Section 71)
  • Other available sources

4. Withdrawal and Recovery:

• If the taxpayer files a valid return within 30 days of ASMT-13 order:
  • The assessment order is deemed withdrawn (Section 62(2)).
• If not:
  • Officer may begin recovery under Section 79.
  • Action under Section 78 may also be initiated.

5. Provisional Attachment and Cancellation:

• In special cases, Commissioner may invoke provisional attachment under Section 83 before ASMT-13 issuance.
• Action under Section 29(2) may be taken for cancellation of registration due to prolonged default.

Source: Circular No.: 129/48/2019-GST