Since only 2 days are remaining now for filing the Annual Return and the Audit Report under GST for financial year 2017-18 and still a large number of Tax Payers haven’t filed the same and there is no information about further extension in this regard. It is high time to understand the consequences for not filing the return within due date so as summarized herein below.
Non-filing of annual return could have following consequences:
1. Notice u/s 46
2. Late fee u/s 47(2)
3. General Penalty u/s 125
4. Compliance Rating u/s 149
> Notice u/s 46
Where registered tax payer is fails to file the Annual Return (GSTR 9, 9A, 9B as applicable) within the prescribed due date, a notice under section 146 of the CGST Act, 2017 will be issued seeking to furnsih the return within 15 days from the date of issue of notice.
> Late Fee u/s 47(2)
Whereas late fee for delay in filing Annual Return will be levied under section 47(2), where act has specifically provided that delay in filing Annual Return could attract late fee of
> Lower of the following:
- 200/-per day (Rs.100 CGST and Rs. 100 SGST) for such failure continues
- 25% calculated on the Turnover in the State or Union Territory
“Now, lets see the definition of the Turnover in a State or UT
Turnover Includes:
✔ supplies in Goods or Services or in both effected within state or outside the state;
✔ Stock Transfer, Barter, Gift in kind, Samples, Exchange of services, etc.;
✔ Exempted supplies, supplies made in the course of export; and
Excludes:
✘ taxes leviable under the GST enactments.
Section 125 General Penalty:
125. Any person, who contravenes any of the provisions of this Act or any rules made thereunder 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.
Section 149 Goods and services tax compliance rating:
149. (1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.
(2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.
(3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.
(Extracted from:
1. CGST Act, 2017
2. CGST Rules, 2017
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