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Published on:
March 21, 2023
By
Prudhvi Raj

GSTR 3B Return Advisory: Notices From State Governments & Way Forward

In recent years, several state governments in India have issued notices to businesses regarding their GSTR 3B returns. The notices are typically sent to businesses that have either not filed their GSTR 3B returns or have filed them with discrepancies or errors. The state governments are taking strict measures to ensure that businesses comply with the GST law and file their returns on time to avoid penalties.

It is important for businesses to take the notices seriously and take the necessary actions to address any discrepancies or errors in their GSTR 3B returns. The first step is to carefully review the notice and understand the specific issues raised by the state government. Businesses can then take the necessary corrective actions, such as filing revised returns, paying any additional taxes or interest, and responding to the notice within the specified time limit.

In addition, businesses should take steps to ensure that they file their GSTR 3B returns accurately and on time in the future. This can be done by implementing effective compliance processes and systems, such as regular reconciliations of input tax credit and output tax liability, timely payment of taxes, and regular review of GST compliance by qualified professionals.

In summary, businesses should take notices from state governments regarding their GSTR 3B returns seriously and take immediate corrective actions to avoid penalties. By implementing effective compliance processes and systems, businesses can ensure timely and accurate filing of their GST returns in the future.

GSTR 3B Return

GSTR-3B is a monthly self-declaration return that is required to be filed by every registered taxpayer under the Goods and Services Tax (GST) regime. It contains the summary of all inward and outward transactions made during a tax period and the amount of tax liability that is payable or refundable. The due date for filing GSTR-3B is the 20th of the following month.

GSTR-3B is an important return as it helps the tax authorities in identifying the tax liabilities of the taxpayers and facilitates the payment of taxes. It is also used as a basis for claiming input tax credit and for refund of taxes paid on inputs. Failure to file GSTR-3B within the due date can result in a penalty and interest.

Penalty for late filing of GSTR 3B returns

If a taxpayer fails to file GSTR 3B returns within the due date, a late fee will be applicable. The late fee for late filing of GSTR 3B returns is Rs. 50 per day for CGST and Rs. 50 per day for SGST, making it a total of Rs. 100 per day. However, the total late fee cannot exceed Rs. 5,000.

It is important to note that the late fee is applicable even if there is no tax liability for the period. Therefore, even if a taxpayer has no tax liability for a given period, they must still file their GSTR 3B returns on time to avoid the late fee.

Consequences of not responding to notices related to GSTR 3B returns

If a taxpayer fails to respond to notices related to GSTR 3B returns within the stipulated time period, the tax authorities may take legal action against the taxpayer. This may include imposing a penalty or initiating recovery proceedings. In addition, non-compliance with the GST laws may affect the taxpayer's GST compliance rating, which may have a negative impact on the taxpayer's business. Therefore, it is important for taxpayers to respond to any notices related to GSTR 3B returns in a timely and appropriate manner.

Due date for filing GSTR 3B returns

The due date for filing GSTR 3B returns is the 20th of the following month. For example, the GSTR 3B return for the month of January is due on February 20th. However, there may be some exceptions or changes to this due date, so it is always a good idea to double-check with the GST portal or consult with a tax professional. It is important to file GSTR 3B returns on time to avoid penalties and other consequences.

FAQs

Sure, here are some frequently asked questions related to GSTR 3B Return and notices from state governments:

1. What is GSTR 3B Return?

GSTR 3B is a monthly return that needs to be filed by every registered taxpayer, providing a summary of all outward and inward supplies, along with the input tax credit claimed and tax paid for a given tax period.

2. Why are state governments issuing notices to taxpayers regarding GSTR 3B Returns?

State governments have been issuing notices to taxpayers who have not filed their GSTR 3B returns or have filed returns with discrepancies. This is because the non-filing or incorrect filing of GSTR 3B returns can lead to revenue loss for the government.

3. What is the way forward for taxpayers who have received notices regarding GSTR 3B returns from state governments?

Taxpayers who have received notices regarding GSTR 3B returns should immediately take necessary actions, such as filing the returns with correct information or rectifying the discrepancies, to avoid any legal action. They should also respond to the notice within the given time limit and provide the required documents or information to the authorities.

4. What are the consequences of not responding to notices related to GSTR 3B returns?

If a taxpayer fails to respond to notices related to GSTR 3B returns, they may face legal action, including penalties and fines. The authorities may also initiate recovery proceedings to recover any tax liabilities that may be due.

5. Can a taxpayer revise their GSTR 3B returns after filing?

No, a taxpayer cannot revise their GSTR 3B returns after filing. However, they can rectify any errors or discrepancies in the subsequent returns that they file.

6. Is there any penalty for late filing of GSTR 3B returns?

Yes, there is a late filing penalty for GSTR 3B returns. The penalty is Rs. 50 per day (CGST and SGST) and Rs. 100 per day (IGST) until the return is filed, subject to a maximum of 0.25% of the taxpayer's turnover in the state or union territory.

7. What is the due date for filing GSTR 3B returns?

The due date for filing GSTR 3B returns is the 20th of the following month, except for the month of March, for which the due date is 22nd of April.

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