Consequences should be known if GSTR 3B is not delivered on time


GSTR 3B is the return that must be filed by ordinary GST taxpayers. It consists of brief information on foreign supplies generated and ITC information. The deadline to furnish the GSTR 3B next month is the 20th but the government can extend the last date. What to do if you did not supply a GSTR 3B on the last date? What are the late fees, penalty and additional cases? Let’s see:

GSTR 3B Late Fee Charged U/S 47 of the CGST Act, 2017

The late fee is the initial attitude you will see towards not depositing GSTR 3B. The late fine is raised every day until it reaches the maximum. The fee is automatically credited to GSTR 3B for the following month. Furthermore, you cannot modify it or you cannot proceed to file the return until you file the late fee.

Note: Currently GSTR 3B from July 2017 to April 2021, the maximum late fee is Rs 500 if you have no tax obligation and Rs 1,000 if you have a tax obligation. However, this waiver is only available if you file returns due on or before August 31, 2021.

Effective June 21, late fees are charged as follows:

tax liability Per day Maximum

AATO * Up to Rs 1.5 crore AATO between 1.5 crores to 5 crores AATO above 5 crores
There is no responsibility rupee. 20 rupee. 500
Aharon rupee. 50 rupee. 2000 rupee. 5000 rupee. 10000

AATO stands for Annual Total Turnover. The total turnover consists of taxable supplies, exempt supplies, exports, and interstate supplies to people with the same PAN. The account must be based on India. In layman’s language, AATO (aggregate annual turnover) can be referred to as annual sales.

Example: Suppose Mr. Bhulakkad will not offer GSTR 3B from December 2021. The company’s AATO is Rs 1.4 crore. Upon inquiring through management at the end of the year, he got the error and urged you to calculate the sum of the late fee. What is the total late fee if you think it will file the returns due on 1st April 2022.

Answer: Here Mr. Bhulakkad has not submitted the GSTR 3B file as of December 2020. Now the GST will not allow him to file the subsequent GSTR 3B, the late fee for all months will be calculated separately. The total late fees payable if Mr. Bhulakkad submits the returns on 1st April 2022 will be as follows:

Month due date* Fill in the date delay Late fees in case of no liability Late fees if other
Dec 01-2022 2022-04-01 71 Capped at Rs. 500 Capped at Rs. 2000
January 2022-02-20 2022-04-01 40 Capped at Rs. 500 2000
February 20-03-2022 2022-04-01 12 240 600
March 20-04-2022 2022-04-01 unavailable
Total 1240 rupees 4600 rupees

Presumably, the government did not extend the deadline.

So you can tell that there is a domino effect for not furnishing GSTR 3B. The late fee must continue to rise until it reaches its maximum.

Month due date* Fill in the date delay Late fees in case of no liability Late fees if other
Dec 01-2022 2022-04-01 71 Capped at Rs. 500 Capped at Rs. 2000
January 2022-02-20 2022-04-01 40 Capped at Rs. 500 2000
February 20-03-2022 2022-04-01 12 240 600
March 20-04-2022 2022-04-01 unavailable
Total 1240 rupees 4600 rupees

Presumably, the government did not extend the deadline.

So you can tell that there is a domino effect for not furnishing GSTR 3B. The late fee must continue to rise until it reaches its maximum.

GSTR 3B Late Fee Charged U/S 50 of the CGST Act, 2017

If the assessor needs to submit tax in the mentioned period, but is unable to pay, then upon delay in payment, interest at 18% falls under tax. You should pay interest only if you use the cash ledger balance to file taxes. Additionally, if you have enough ITC and don’t file taxes through net banking/challan/balance being added in the cash ledger, there is no interest being taxed for you. There is no case for a maximum maximum benefit.

From our previous example, suppose Mr. Bhulakkad is looking for you to calculate interest. Therefore, you are required to have the monthly input tax credit for each month Rs 18,000 and output tax Rs 28,000. Thus, Rs 10,000 must be brought forward per month through the cash ledger balance. Hence the benefit is stated as follows:

Month due date* Payment or due day delay Pay by debiting the cash ledger benefit
Dec 01-2022 2022-04-01 71 10,000.00 rupee. three hundred fifty
January 2022-02-20 2022-04-01 40 10,000.00 rupee. 197
February 20-03-2022 2022-04-01 12 10,000.00 rupee. 59
March 20-04-2022 2022-04-01 unavailable 10,000.00 rupee. 0

Hence, in case of not applying for GSTR 3B, interest is already liable to be paid and the amount should be added to the late fee of Rs 4,600 computed as above.

Rule for creating an electronic waybill under 138E – restriction if there are no two consecutive GSTR 3Bs

Towards the continuous period of two tax periods, if the individual does not file the returns, it will stop the creation of an E-Way Bill towards each type of external supply of that individual. After the successful filing of the GST return, the restrictions arrived. Electronic route bill restrictions shall result in restrictions:

The value of the overseas offer is estimated at more than 50,000 outside the country

External supply of specified values ​​as notified by the state government within the country.

Hence in our illustrations the company’s electronic route billing will be restricted to not submitting December and January returns.

Penalty for GSTR 3B under Section 122(1)(3) taxation after the due date

For specific offenses, there are laws that are subject to GST penalties. It is a crime not to submit the collected tax amount within 3 months from the last date. The penalty must be related to the amount of tax obtained in case of minimum Rs 20,000. Hence as a continuation of the said case, the deadline for filing the tax collected in December is January 20. If Mr. Bhulakkad does not file taxes on April 20, including late fees and interest, a fine of Rs 28,000 will be taxable.

Suspension and cancellation of GST registration under Article 29(2)

If an ordinary resident does not file the return for a continuous period of 6 months, the GST officer may refuse to register the individual for GST. Prior to cancellation, the employee must provide you with a notice stating that clarification is required from the individual and that person is required to respond within 7 working days with a reason given to the employee for not canceling the GST registration. But it is not necessary for the officers to implement the cancellation immediately after the continuous sixth month return is not submitted, but if the officer urges to start the GST registration deregistration process, your GSTIN will be suspended. Unless the suspension is refused, the registered individual may not submit any taxable goods. And then the business will bear.

Continuing with our previous example, if Mr. Bhulakkad does not file returns from December 2021 to May 2022, this will result in the filing of the notice and the execution of the GST deregistration procedure.

Steps of the redemption process under Section 79

This is the hardest step you can get to not furnish a GSTR 3B. Several reminders and notifications are needed to be saved before the recovery can be performed. The flow of reminders and the process is stated as follows:

First reminder 3 days: Before the last date to inform the assessor of filing the return on or before the last date.

Immediately second reminder: Send to last date to notify that the return has not yet been submitted on the last date.

Notice: After 5 days of the due date, the notice on the GSTR Form 3A required the individual to file returns within 15 days.

ranking: at any time after 15 days have passed since you have given your notice in your GSTR Form 3A, Due to return, it is not furnished. The officer may continue to evaluate. In this, the adjuster must calculate the tax liability for the greatest amount of his judgment. The employee may consider outsourcing information provided through the person, internal supply disclosure through his suppliers, electronic waybill details, etc. The application will be announced on ASMT-13 and the summary will be uploaded on Form DRC-07 by an officer.

Getting started: 30 days after the ASMT-13 application, An employee may perform recovery actions under Section 78 and true refunds under Section 79. Under the GST system, officers have the powers to improve tax owed from your debtors, recover receivables, seized goods, property, etc.

It is important to announce that officers may proceed to carry out the assessment. The word may imply that officers do not need to service a GSTR 3A Notice. Officers continue to work any day after completing 15 days. There is no instrument that can measure exact recovery time.

In the example, as of April 1, 2022, the notice should be issued in Form GSTR 3A for December, January, and February. And therefore

  • For February 2022, Mr. Bhulakkad can file the return so that the employee does not proceed with the tax calculation.
  • For January 2022, if the order is circulated in ASMT Form 13 beforehand, then Mr. Bhulakkad can file a GSTR 3B which results in a denial of subsequent proceedings.
  • For December 2021, if ASMT-13 is pre-circulated and 30 days of service are completed, Mr.

ITC limits for recipients

The main condition for benefiting from ITC is the payment of tax to the government through the supplier of supplies that the recipient benefits from ITC. When GSTR 3B is not furnished, it appears that the supplier has not submitted taxes to the government, but there are exceptions such as taxes that can be filed on GSTR 9 or via DRC Form 03. Essentially, the majority of businesses have provided taxes through GSTR 3B. This is the most ignored and controversial consequence of not providing GSTR 3B as there is no tool given to the recipient to validate the specific IRS filed to the government or not by the supplier.





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