GSTR 3A Notice: Understanding Notices, Actions, and Implications
What is GSTR 3A Notice?
GSTR 3A is not a return but a notice issued by tax authorities to taxpayers who have failed to file their GST returns by the due date. It is a system-generated notice under Section 46 of the CGST Act, informing taxpayers that they have defaulted on filing their return for a particular tax period.
The GSTR 3A notice requires the taxpayer to furnish the overdue return within 15 days of receiving the notice. It warns that failure to do so may result in the tax liability being assessed by the tax officer based on available information, along with applicable interest and penalties.
Also Read-Form 61A: Reporting Specified Financial Transactions (SFT)
When is GSTR 3A Issued?
A registered taxpayer is required to file GST returns (like GSTR-1, GSTR-3B, GSTR-4, GSTR-9 etc.) for the supplies made or received and discharge the resulting tax liability by the prescribed due dates.
GSTR 3A notice is issued when returns are not filed by the due date for:
- GSTR-3B (to be filed by regular taxpayers).
- GSTR-4 (to be filed by composition dealers).
- GSTR-5 (to be filed by non-resident taxpayers).
- GSTR-6 (to be filed by input service distributors).
- GSTR-7 (to be filed by persons required to deduct tax at source).
- GSTR-8 (to be filed by e-commerce operators required to collect tax at source).
- GSTR-9 (annual return).
- GSTR-10 (final return).
As per recent CBIC guidelines, a system generated message is first sent to all registered persons 3 days before the due date to remind them to file the return on time. Once the due date is over, a system generated mail/message is immediately sent to all the defaulters informing them that they have not filed the return.
Note: If the return is still not filed within 5 days after the due date, the GSTR 3A notice is issued electronically requiring the taxpayer to file the return within 15 days.
What are the Consequences of receiving GSTR 3A Notice?
On receiving the GSTR 3A notice, the taxpayer has to file the overdue GST return within 15 days from the date of notice, along with late fees and interest.The late fees for not filing GST returns by due date are:
- For GSTR-3B and GSTR-4: Rs. 50 per day of delay (Rs. 20 per day each for CGST & SGST). Maximum late fees is Rs. 10,000.
- For GSTR-5 and GSTR-6: Rs. 200 per day of delay (Rs. 100 per day each for CGST & SGST). Maximum late fees is Rs. 5,000.
- For GSTR-7 and GSTR-8: Rs. 100 per day of delay. Maximum late fees is Rs. 5,000.
- For GSTR-9 and GSTR-10: Late fees of Rs. 200 per day of delay, subject to a maximum of 0.25% of the taxpayer’s turnover in the state/UT.
In addition to late fees, interest at 18% per annum is also applicable on the tax liability from the next day of the due date till the date of payment.
If the taxpayer still does not file the return within 15 days of the GSTR 3A notice, the tax officer can proceed to assess the tax liability to the best of his judgment under Section 62 of the CGST Act. The assessment order would be issued in Form GST ASMT-13 without any further communication.
In addition to the tax assessed, interest and penalty would also be payable as per the provisions of the GST Act. The penalty could be Rs. 10,000 or 10% of the tax assessed, whichever is higher.
Can Returns Be Filed After 15 Days of GSTR 3A Notice?
Yes, the overdue GST returns can be filed even after 15 days of receiving the GSTR 3A notice. However, this should be done before the tax officer passes the assessment order.
If the return is filed after 15 days but before the issuance of the assessment order, the GSTR 3A notice will be deemed to have been withdrawn. But late fees and interest would still be payable for the delay in filing.
If a taxpayer files a valid return within 30 days of the service of the assessment order in Form GST ASMT-13, the assessment order shall be deemed to have been withdrawn. However, beyond 30 days, the tax officer may initiate recovery proceedings under Section 79 of the CGST Act.
Can Tax Liability Be Paid in Installments?
In cases where the taxpayer is unable to pay the full tax liability as a lump sum, they have the option to pay the tax in installments. For this, the taxpayer has to make an application to the Commissioner requesting to allow payment of tax in installments.
The Commissioner may extend the time for payment or allow payment of tax in monthly installments, not exceeding 24 installments. The installments would be payable along with interest at 18% p.a.
It’s important to note that the installment facility is not available for self-assessed tax liability which has to be paid as a lump sum. It is available only for tax, interest or penalty determined by the tax officer in scrutiny, assessment, audit etc.
What Happens if Returns Are Not Filed Even After GSTR 3A Notice?
If the taxpayer does not file the overdue GST returns even after receiving the GSTR 3A notice and the subsequent assessment order, it could lead to cancellation of GST registration.
As per Section 29(2) of the CGST Act, the proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where:
- Any Registered Person Has Not Furnished Returns for A Continuous Period of Six Months, Or
- Any Person Who Has Taken Voluntary Registration Has Not Commenced Business Within Six Months from The Date of Registration.
Before cancelling the registration, the proper officer shall issue a show cause notice in Form GST REG-17 to the registered person asking why their registration should not be cancelled. The taxpayer has to reply within 7 working days from service of the notice.
After considering the reply, if any, the proper officer may pass an order in Form GST REG-19 within 30 days from the date of application or reply, either cancelling the registration or rejecting the application for cancellation.
Conclusion
GSTR 3A is an important notice which should not be ignored by any GST registered taxpayer. Failure to file returns on time not only leads to levy of late fees and interest but could also result in best judgment assessment by tax authorities and even cancellation of GST registration.
On receiving the GSTR 3A notice, the taxpayer should immediately file the overdue returns, along with payment of taxes, interest and late fees. If there are genuine reasons for the delay, the same should be communicated to the proper officer in writing.
Having a robust system for tracking due dates, maintaining proper books of accounts and diligently filing GST returns well before due dates is key to avoid getting a GSTR 3A notice in the first place. Taxpayers should also stay updated on the latest legal provisions and procedures related to GST compliances.
Frequently Asked Questions (FAQ) for GSTR 3A.
What is GSTR 3A?
GSTR 3A is a form used for the notice to return defaulter under the Goods and Services Tax (GST) regime. It is a communication from the tax authorities to a registered taxpayer who has failed to file their GST returns as required.
Who Is Required to File GSTR 3A?
GSTR 3A is not filed by taxpayers but rather sent to taxpayers who have failed to file their regular GST returns, such as GSTR-3B or GSTR-1. It is a notice issued by the tax authorities to prompt non-compliant taxpayers to file their pending returns.
How Is GSTR 3A Generated?
GSTR 3A is generated by the GSTN (Goods and Services Tax Network) based on the information available from the GST returns that have been filed by other taxpayers. It is typically generated when a registered taxpayer misses filing their returns for a specified period.
What Should I Do if I Receive a GSTR 3A Notice?
If you receive a GSTR 3A notice, it’s essential to take prompt action. You should file the pending GST returns for the period mentioned in the notice and pay any outstanding tax liability, if applicable. Failure to do so may result in penalties and legal consequences.
What Are the Consequences of Ignoring a GSTR 3A Notice?
Ignoring a GSTR 3A notice can lead to penalties, fines, and legal actions by the tax authorities. It may also affect your GST compliance rating, which can have adverse implications for your business.
How Do I Respond to A GSTR 3A Notice?
To respond to a GSTR 3A notice, you should:
- File the pending GST returns for the specified period.
- Pay any outstanding tax liability, including interest and late fees.
- Ensure that all necessary corrections and amendments are made in the returns.
Can I Dispute a GSTR 3A Notice if I Believe It Is Incorrect?
If you believe that the GSTR 3A notice has been issued in error, you should contact the tax authorities and provide the necessary documentation to support your case. It’s crucial to rectify any discrepancies and communicate with the authorities to resolve the issue.
What Are the Consequences of Not Responding to A GSTR 3A Notice?
Failing to respond to a GSTR 3A notice can lead to legal actions, including the cancellation of your GST registration and penalties. It can also impact your ability to conduct business smoothly within the GST framework.
Is There a Specific Time Frame to Respond to A GSTR 3A Notice?
The notice typically specifies a deadline by which you must respond and rectify the non-compliance. It’s essential to adhere to this timeline to avoid further penalties and legal consequences.
Can I Avoid Receiving GSTR 3A Notices?
Yes, you can avoid GSTR 3A notices by ensuring timely and accurate filing of your GST returns. Regularly monitor your GST compliance and make sure that all returns are filed within the due dates.
Remember that compliance with GST regulations is crucial to avoid legal and financial consequences. If you have any doubts or concerns regarding GSTR 3A notices or your GST filings, it’s advisable to consult with a tax professional or legal expert.
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C.K. Gupta
Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.
