What is form GSTR 3A?
Under GST, a registered taxpayer, with a turnover exceeding the threshold limit, is required to file his/her GST returns on a monthly/quarterly basis along with one annual return. However, if he/she fails to comply with the same, the taxpayer receives a notice from the government in form GSTR 3A. Thus, form GSTR 3A is not a return form but a notice form for taxpayers who have failed to file their GST returns.
When will a taxpayer receive GSTR-3A Notice?
Form GSTR 3A notice is issued in case a taxpayer fails to file the following returns:
- GSTR-3B (Regular dealer)
- GSTR-4 (Composition dealer)
- GSTR-5 (Non-resident Taxpayers)
- GSTR-6 (Input Service Distributor)
- GSTR-7 (TDS Deductor)
- GSTR-8 (TCS collector)
- GSTR-9 (Annual return)
- GSTR-10 (Final return)
What should a taxpayer do after receiving GSTR-3A?
Upon being notified by the government via form GSTR 3A, the defaulter/ taxpayer is given 15 days of time to file his/her return along with the Penalty and late fees applicable from the date of issuance of GSTR 3A notice.
What are the penalties/late fees a defaulter is required to pay?
For annual return
- Rs 200 per day (Rs. 100 per day for CGST, SGST and IGST (if applicable) each).
- The maximum late fee applicable cannot exceed 0.25% of the taxpayer’s turnover in the state.
- Rs 200 per day (Rs. 100 under CGST & Rs. 100 under SGST).
- The maximum penalty applicable cannot exceed Rs. 5,000.
- There is no late fee on IGST.
- The defaulter is required to pay his due with an interest of 18%.
- Interest has to be calculated by the taxpayer on the amount of outstanding tax to be paid.
- The time period for interest calculation will be from the next day of filing to the date of payment.
What happens if a taxpayer does not file his return within 15 days?
If the registered taxpayers fails to file his GST returns, the provisions of Section 62 shall apply.
An authorised officer shall be allocated to assess the tax accordingly, as per the information available with the department. He will not issue any further notice before starting the assessment.
The penalty of Rs. 10,000 or 10% of the tax due, whichever is higher shall be applicable on the defaulter.
Can the taxpayer file return after the 15 days?
If the return is filed after 15 days but before the proper officer passes an assessment order then the notice will be assumed to be withdrawn.
Payment of GST in Installments
In case, wherein a taxpayer is unable to pay the lump sum of the GST applicable on their trade, before the given due date, provisions of monthly installments have been made under GST. To avail installment option, such taxpayers are required to file an application to the Commissioner, requesting to make his/her GST payments in monthly installments.
Upon such requests, the Commissioner can either extend the due date for GST payment or sanction the request to pay GST in instalments. Also, the commissioner is required to provide the reasons for the acceptance or rejection of such application in writing.
A taxpayer permitted to pay GST in monthly installments should keep a note of the following points:
- The Installments are payable every month.
- The taxpayer can pay his GST in maximum 24 installments, which means the time of payment can be extended for a maximum of 2 years
- Interest @18% must be paid along with the installment
- The taxpayer is required to pay the installments on time. In case of a missed payment, the installment cycle shall be ceased without any notice. In addition, the taxpayer would be required to pay the outstanding amount on the same day.
P.S: This provision of paying GST in installments is not available for dues under self-assessment. Any tax under self-assessment is required to be paid in a lump sum. However for liabilities calculated by tax authorities during provisional/final assessments, scrutiny, audit etc. can be opted to be paid in installments.
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