Procedures for initiation of action on non-filers of returns under TNGST Act

If you are a business owner in Tamil Nadu and have not filed your GST returns, it is important to know the procedures for initiation of action by the authorities. The Tamil Nadu Goods and Services Tax (TNGST) Act provides for legal action against non-filers of GST returns to ensure compliance with the tax laws. In this article, we will discuss the procedures for initiation of action on non-filers of returns under TNGST Act.

Who is considered a non-filer of returns under TNGST Act?

As per the TNGST Act, any registered person who fails to file the GST returns for a period of two consecutive tax periods will be considered a non-filer of returns. The tax periods are generally monthly or quarterly depending on the turnover of the business.

Procedure for issuing notice to non-filers

The authorities will first issue a notice to the non-filer of returns, asking them to file the GST returns within a specified period of time. The notice will be sent through the GST portal and will be accompanied by a demand for payment of tax, interest, and penalty.

If the non-filer fails to file the returns within the specified time period, the authorities will initiate legal action against them.

Procedure for initiating legal action against non-filers

The authorities can initiate legal action against non-filers of returns under the TNGST Act by following these steps:

Issue a show-cause notice: The authorities will issue a show-cause notice to the non-filer, asking them to explain why legal action should not be taken against them.
Personal hearing: The non-filer will be given an opportunity to be heard before the authorities. They can explain their reasons for not filing the returns and provide any supporting documents if required.
Order for payment of tax, interest, and penalty: Based on the personal hearing and the documents provided, the authorities will pass an order for payment of tax, interest, and penalty.
Action for recovery of tax, interest, and penalty: If the non-filer fails to pay the tax, interest, and penalty, the authorities can initiate recovery proceedings by attaching their bank accounts and assets.

Penalties for non-filers of returns under TNGST Act

Non-filers of GST returns under the TNGST Act will be liable to pay a penalty of Rs. 100 per day of default subject to a maximum of Rs. 5,000. In addition, they will be liable to pay interest on the amount of tax due.

Conclusion

It is important for business owners to file their GST returns on time to avoid legal action by the authorities. Non-filers of returns under the TNGST Act can face severe penalties and recovery proceedings. By understanding the procedures for initiation of action on non-filers, business owners can ensure compliance with the tax laws and avoid legal hassles.