The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification on 31st March 2023, stating that the assessment proceedings initiated by the tax authorities under the Goods and Services Tax (GST) Act will be deemed to have been withdrawn if the taxpayer files the pending GST returns GSTR-10 and GSTR-3B.
GSTR-10 is the final return that needs to be filed by a taxpayer whose GST registration has been canceled or surrendered. It contains details of stocks, assets, and liabilities of the taxpayer at the time of cancellation or surrender of registration.
Form GSTR-3B is a monthly self-declaration return filed by a taxpayer registered under Goods and Services Tax, containing details of outward and inward supplies, input tax credit claimed, and tax paid.
If a taxpayer has pending assessment proceedings under the Goods and Services Tax Act, and has not filed the GSTR-10 and GSTR-3B returns, they can now file the returns to get the assessment proceedings deemed withdrawn. This means that the proceedings will be considered as null and void, and the taxpayer will not be liable to pay any tax or penalty under the proceedings.
However, it is important to note that the notification only applies to pending assessment proceedings where the returns are not filed. If the taxpayer has already paid the tax or penalty, they will not be entitled to any refund or adjustment due to the deemed withdrawal of assessment proceedings.
Further, the registered persons shall furnish the said return on or before the 30 June 2023.
Also, this notification applied only to served assessment orders issued on or before February 28, 2023.
It was also clarified that the withdrawal of assessment order will be done regardless of whether the assessee has filed an appeal or against the assessment not, even if the appeal order has attained finality.
Taxpayers are advised to file their pending GST returns GSTR-10 and GSTR-3B to take advantage of the deemed withdrawal of assessment proceedings.
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