Assessment & Cancellation of Registration for Non-Filing of GST Returns: Tamil Nadu Issues Instructions [Read Circular]

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 continuous period of six months and also fixing up the responsibility on Territorial Deputy Commissioners and Territorial Joint Commissioners in the matter of supervising the return filings in assessment offices.

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

Hence, the following action has to be taken after the due date for filing return, till the date of generation of FORM GSTR – 3A electronically.

1. Every Proper Officer has to contact the defaulter over phone for reminding to file the pending returns. E-mails shall be sent to the defaulter’s authorised signatory for the same purpose.
2. The Deputy Commissioners shall personally watch the filing of returns by the top 100 tax payers of their respective zones contributing 90% of the Revenue and for any default in filing of such returns, the Deputy Commissioner concerned would be held responsible.
3. The Territorial Joint Commissioners shall closely monitor the progress of return filing by the top registered tax payer contributing 9Q% of the Revenue and see that the returns are filed in time.
4. The Registered tax payer on receipt of FORM GSTR- 3A, shall file the return within 15 days from the date of receipt of the said FORM GSTR-3A notice. For those who file the returns within 15 days, the notice issued in FORM GSTR-3A shall be deemed to have been withdrawn. The details of defaulters who fail to file FORM GSTR-3B returns even after expiry of FORM GSTR-3A time limit, is reflected in the Proper Officer’s back office login.
5. The Proper Officer should initiate the task to take action under Section 62 of the TNGST Act, 2017, to assess the turnover under best of judgement taking in to account all the relevant materials available or gathered in respect of defaulting registered tax persons.
6. The assessment order in FORM GST ASMT-13 along with summary in FORM GST DRC-07 thereof shall be uploaded electronically. In respect of the assessment order passed under Section 62, it has been specifically stated that the said assessment order shall be deemed to have been withdrawn if the registered person furnishes a valid return within thirty days of service of the assessment order. 
7. In respect of QRMP return filers, a list of defaulters shall be prepared for non-payment of tax and they have to be persuaded by the Proper Officer for payment of tax for that month. When the QRMP Return filer, fails to file return in FORM GSTR 3B for two consecutive tax period, action under Section 62 of the TNGST Act 2017, has to be initiated. The procedures followed in respect of regular filers has to be undertaken in respect of QRMP return filers also.
8. Hence, the Proper Officer shall issue ASMT-13 along with DRC-07 in respect of non-filers who are contributing 90% of revenue and top 50 tax payers based on the revenue in previous financial year within 30 days of expiry of FORM 3A time limit.

In the matter of proceeding against non-filers of various returns under GST, the Principal Secretary/ Commissioner of ST, Chennai 600 005 has issued detailed instructions on several procedures to be adopted by the GST authorities in Circular No. 14/2022-TNGST (PPS/GST-15003/23/2022) dated 12-11-2012.

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