Tamil Nadu Issues Instructions on Assessment & Cancellation of Registration for Non-Filing of GST Returns

The Goods and Services Tax (GST) department has issued instructions covering the assessment and cancellation of registration in the event of non-filing of GST returns for a continuous period of six months, as well as putting the responsibility of supervising return filings in assessment offices on Territorial Deputy Commissioners and Territorial Joint Commissioners.

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

As a result, the following steps must be taken after the due date for filing the return until the date of the electronic generation of FORM GSTR – 3A.

a) Every Proper Officer must call the defaulter and remind him or her to file the pending returns. E-mails will be sent to the defaulter’s authorized signatory for the same purpose.

b) The Deputy Commissioners must personally monitor the filing of returns by the top 100 taxpayers in their respective zones, who contribute 90% of the revenue, and any failure to do so will hold the Deputy Commissioner responsible.

c)Territorial Joint Commissioners must constantly monitor the progress of return filing by the top registered taxpayer, who contributes 9Q% of revenue, and ensure that the returns are submitted on time.

d)Upon receipt of FORM GSTR-3A, the registered taxpayer must file the return within 15 days of receiving the above mentioned notification. If the returns are filed within 15 days, the notice issued in FORM GSTR-3A is presumed to have been withdrawn. Defaulters who fail to file FORM GSTR-3B returns even after the FORM GSTR-3A time limit has expired are listed in the Proper Officer’s back office login.

e)The Proper Officer should begin an action under Section 62 of the TNGST Act, 2017, to evaluate the turnover using best judgment, taking into consideration all relevant documents accessible or obtained in respect of defaulting registered tax people.

f)The assessment order in FORM GST ASMT-13, as well as the summary in FORM GST DRC-07, must be electronically uploaded. In the case of an assessment order issued under Section 62, it is specified that the assessment order will be presumed dismissed if the registered person submits a valid return within thirty days following the assessment order’s delivery.

g)For QRMP return filers, a list of defaulters for non-payment of tax should be established, and they must be encouraged by the Proper Officer to pay tax for that month. When the QRMP Return filer fails to file a return in FORM GSTR 3B for two consecutive tax periods, action must be taken under Section 62 of the TNGST Act 2017. The processes established for ordinary filers must also be followed for QRMP return filers.

h)As a result, the Proper Officer shall issue ASMT-13 along with DRC-07 in respect of non-filers who contribute 90% of revenue and the top 50 taxpayers based on revenue in the previous fiscal year within 30 days of the expiry of FORM 3A.
In the case of non-filers of different GST returns, the Principal Secretary/Commissioner of ST, Chennai 600 005, gave specific directions on many steps to be followed by the GST authorities in Circular No. 14/2022-TNGST (PPS/GST-15003/23/2022) dated 12-11-2012.

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