GST& Income Tax Updates | 1

Late Fees Applicability under GST

Late fees is payable in case of filing of return after due date. Late fees is applicable
on every return which is not filed up to due date. So, if four returns are pending of a
person, then late fees will be applicable for all four returns separately.

Late fees for late filing of GSTR-3B is Rs. 50 per day up to a maximum of Rs. 10,000. In
case, there is no sales in a month then late fees will be Rs. 20 per day up to a
maximum of Rs. 10,000.

For Example:

Days of
GSTR-3B for Due Date Date of Filing Late Fees*
Default

August 2019 20/09/2019 30/11/2019 71 3,550

September 2019 20/10/2019 30/11/2019 41 2,050

October 2019 20/11/2019 30/11/2019 10 500

Total 6,100

* Assuming there is a sales

Late fees for GSTR-3B for July 2017 to September 2017 is waived off for unlimited
period. Late fees for GSTR-3B for October 2017 to September 2018 is waived up to 31st
March 2019.

Late fees for GSTR-1 is Rs. 50 per day. Late fees is waived off for month/quarter of July
2017 to November 2019 if the returns are filed up to 1st January 2020. Please note that
due date is NOT extended to 10th January 2020. If return is filed after 10th Jan 2020,
then late fees from the original due date will be applicable.

Visit this link to calculate your late fee of overdue GST returns.
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Cancellation of GST Registration

Rules regarding cancellation of GST

The GST registration can be cancelled by the officer from any date (including any
past date) where: -

• A registered person has not filed returns for a continuous period of six months.
• A person registered under composition scheme and not filed return for three
consecutive period.
• A person has taken voluntarily registration and not commenced business within
six months of registration.

If the registration is cancelled by the officer, it doesn’t affect your liability to pay GST
or late fees or any penalty. All such amounts are still liable to be paid and can be
recovered by the officer.

How to find your GSTIN status

Step 1 – Visit GSTIN search page on https://services.gst.gov.in/services/searchtp

Step 2 –Enter your GSTIN, verification code and click on Search button

Step 3 –All the details of the entered GSTIN will get displayed on the screen.
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GSTIN/UIN Status – This shows the current status of GSTIN. You will see the current status
of your GSTIN (Active or Cancelled).

Date of Cancellation–If the GSTIN status is Cancelled, you will see the effective date
of such cancellation. In case GSTIN is Active, the column should be blank.

From which date cancellation can be done by your AO

Assessing officer can cancel your GSTIN on the current date or any previous date
depending on the overdue returns which are pending for filing: -

a) Cancellation date is same to GST Registration date

If you have not filed any return since your GST registration and return has been
overdue for more than six moth then the assessing officer most probably cancel
your GST registration from the same date of your GST registration. In such cases,
you are required to file the GSTR1 and GSTR3B for the single month in which your
registration take place along with GSTR-10 (Final return). So for example, if you
have taken GST registration on 13th Dec 2018 and have not filed any return till
June 2019, then the Assessing officer may pass the order to cancel your GST
registration effective from 13th Dec 2018 any time after 20th June 2019.

b) Any other date

• Current date
It may also be possible that the Assessing Officer pass the order to cancel
your GST registration from current date. In such case, you have to file all the
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pending returns (GSTR-1, GSTR-3B & GSTR-10)till the effective date of

cancellation and have to pay the late fees.

• Date other than GST registration date

It may also be possible that the Assessing Officer pass the order to cancel
your GST registration beginning any date from the last date of the month for
which GST return has been filed and the current date. In such case, you
have to file all the pending returns (GSTR-1, GSTR-3B & GSTR-10)till the
effective date of cancellation and have to pay the late fees.
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How to Reduce Late Fees

GSTIN is Active
The only option to reduce the late fees is to get your GSTIN cancelled from the date
as earlier as possible. As per rules, officer has power to cancel the registration from
any date including any past date. You can contact your Assessing officer and
request him to cancel your GSTIN from your date of registration.

GSTIN is already cancelled by officer

It is the best situation if the effective date of cancellation is same to your GST
registration date as you will save lot of fine for overdue returns.

If your effective date of cancellation is any other date or current date then you can
visit the office of Assessing Officer and ask him to cancel your GST from registration
date for saving late fees.

However, if you have made any GST sales or purchase then you should first file the
returns till the month in which you have last GST sales or purchase and then ask the
Assessing Officer to cancel your GSTIN from that month so save GST late fee penalty.

Note: - If you want to start your business now, you can do so by first cancel your
existing registration and after completion of whole process, get a new registration.The
application for new GST number is generally rejected by your assessing officer, if you
have another GST number which is in default (pending returns, penalty, dues etc.).
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Process after GSTIN Cancellation

Revocation of Cancellation of GST

You can apply online for revocation within 30 days from the date of order of
cancellation of GST. Application of revocation can be filed, once you file all the
pending return till the effective date of cancellation mentioned in your Order of
Cancellation.

However, if the period of 30 days has been elapsed then you are required to visit your
Assessing Office and ask him to consider your application for revocation of
cancellation order.

If you had not carried out any sales and purchases and GSTIN is cancelled by officer
from the date of registration or any date near to date of registration, then consider
the fact that if GSTIN is revoked then you becomes liable to pay late fees for all
months/quarters from the date of registration.

GSTR-10 Final Return

Every person have to file GSTR10 i.e. Final Return once the GST is cancelled by the
department on his own due to default in filing return or on the basis of application
made by you.
• GSTR-10 has to be filed within 90 days from the date of notice of
cancellation (not from the effective date of cancellation).
• Flat late fee of Rs 200 per day is require to be paid for every date of default
before filing return.
• The maximum late fee for filing GSTR-10 is Rs 10,000.
• In GSTR-10, you are require to reverse the GST credit :-
 on the stock lying with you at the time of closing of business
 on the capital goods for which you have claimed GST credits.
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Assessment and Recovery of GST

Best Judgement Assessment

A person who fails to file monthly and quarterly returns or final return even after
service of notice in Form GSTR-3A, the proper officer may proceed to assess the tax
liability to the best of his judgment.

The order can be passed within 5 years from the due date of filing the annual return
for the year to which the tax not paid relates.

He has to take into account all the relevant material which is available or which he
has gathered and issue an assessment order. For the purpose of assessment, the
proper officer may take into account, Form GSTR-1 and Form GSTR-2A, information
available in e-way bills or any other information available. For example, if you has
shown sales in GSTR-1 but not paid such tax in GSTR-3B then such sales can be used
for assessment. Another example is that if your GSTR-2A shows that you has made
purchases, then on basis of such purchases your sales can be assessed.

In case defaulter furnishes return within 30 days of service of assessment order in Form
GST ASMT-13, the said assessment order shall be deemed to be withdrawn. If the said
returnsremains unfurnished within the statutory period of 30, then the proper officer
may initiate proceedings and recovery as per the defined rules.

Deputy/Assistant Commissioner of Central Tax has been designated as 'proper officer'

for the purpose of assessing tax liability with best judgment- CBE&C circular No.
3/3/2017-GST dated 5-7-2017.

Recovery of tax

If an order is passed ordering a person to pay the specified amount, the person is
required to pay such amount within three months of passing such order. If the proper
officer considers it in the interest of revenue, for reasons recorded in writing, it may
require such person to pay such amount in less than three months. If the amount is not
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paid within three months or such time as given by the proper officer, then the
recovery proceedings may be initiated.

Proper officer shall proceed to recover the amount by one or more of the following
modes:

1) If any amount is payable to such person which is under control of proper officer
or any other specified officer, then amount is deducted from such amount
payable. For example, a refund of GST is due to be paid in another state for
such person, then such amount can be deducted from refund amount.

2) Amount can be recovered by detaining and selling any goods belonging to

such person, which are under the control of such proper officer.

3) Proper officer may issue a written notice to any person from whom money is due
or may become due to such person. Such person has to pay the amount due to
him or the amount payable by such person as per order (whichever is less) to
the government. The person is required to pay only when the amount becomes
due to such defaulting person. Such notice can also be issued to post office,
banking company or an insurer. In other words, the proper officer may require a
bank to pay the amount lies in saving account, current account, fixed deposit to
pay against the order issued.

4) Proper officer may detain any movable or immovable property belonging to or

under control of such person until the amount is being paid. If after 30 days of
detaining the property, amount still remains unpaid then such property can be
sold off. Any amount remaining after satisfying the amount payable and cost of
sales will be paid to such a person.

5) Proper officer may issue a certificate and send to the collector of the district in
which such person resides or carry on business or any officer authorized by the
government. Such collector or officer shall proceed to recover from such person
the amount specified as if it were an arrear of land revenue.
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6) Proper officer may file an application with the Magistrate and such Magistrate
shall proceed to recover from such person the amount specified in such
application as if it were a fine imposed by him.

Option to Pay Demand in Instalments

A taxable person can apply to the commissioner under Section 80 of CGST Act for
extension of time for payment of GST, Interest, Penalty or any amount under GST. The
taxable person can also apply for payment in instalments.

The main condition is that such GST or other amount should not be the amount due as
per the liability self-assessed in any return. Therefore, the onlyamount which is payable
due to a demand notice can be deferred or paid in instalments.

The number of instalments cannot be more than twentyfour and the person is also
liable to pay interest at the rate of 18% under Section 50 of CGST Act.

If the person makes adefault in the payment of such instalment on its due date, the
whole outstanding amount becomes payable on the date of default.

This facility is not allowed in following conditions:

• Taxable person has already defaulted on the payment of any amount for which
the recovery process is on.
• Taxable person has not been allowed to make payment in instalments in the
preceding financial year.
• The amount for which instalment facility is sought is less than twenty–five
thousand rupees.

Process of filing application

Form GST DRC-20 is required to be filed for applying under section 80. On receiving an
application,the Commissioner shall call for a report from the jurisdictional officer about
the financial ability of the taxable person to pay the said amount. Considering the
report of the jurisdictional officer, the Commissioner may issue an order in FORM GST
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DRC- 21 allowing the taxable person further time to make payment or to pay the
amount in such monthly instalments, not exceeding twenty-four, as he may deem fit.

The process to file form GST DRC-20 is as below

Step 1: Login to GST portal

Step 2: Go to form GST DRC-20. There is two way to open the form.

Method 1 - Go to Services >> Payments >>Application for Deferred Payment/

Payment in Instalments

Method 2 - Go to Services >> User Services >> My Applications and then select
Application for Deferred Payment/Payment in instalment and click on New
Application button.

Step 3: Fill the Demand Id in the box if you do not have any demand outstanding,
then a message will come in the top as in below image.
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Step 4: Fill in your Demand ID. Tax period will be automatically filled. Select whether
you want to defer the payment or pay in instalments. If instalment option is selected
then enter number of instalment in which you want to pay. If the Deferred Payment
option is selected, the taxpayer has to select the appropriate ‘Due date of payment
from the calendar. Upload supporting documents if any and file the form.

ARN will be generated and will be sent to your email and SMS. You can check the
status of the application by going to Services >> User Services >> My applications.
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Others

How to find your Jurisdictional Office

Step 1 – Visit GSTIN search page on https://services.gst.gov.in/services/searchtp

Step 2 – Enter your GSTIN, verification code and click on Search button

Step 3 – All the details of the entered GSTIN will get displayed on the screen.
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Step 4–You will see the details of your local office under StateJurisdictionand Central
Jurisdiction. The contact point for you is that Jurisdiction which is shown in red colour.

Step 5 – If your contact point is Centre Jurisdiction then you are require to called
CBEC to get the exact location of your officer. The toll free contact number for CBEC
is 1800 1200 232. You are required to share the GSTIN and Pin code of the registered
address to CBEC Support Executive to get the location of your officer.

If your contact point is State Jurisdiction then you are require to visit your state GST
website to find the toll free numbers of your state department and find the exact
location of your officer. To find the state GST website, click on the state name in this
page which will redirect you to your state GST website
https://services.gst.gov.in/services/gstlaw/gstlawlist

How to view Notices and Orders

Step 1 – Visit GST portal to login into your account

https://services.gst.gov.in/services/login

Step 2 – Click on Services -> User Service -> View Notices and Orders
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Step 3 – All the notices and orders issued against your GSTIN shall be listed on the
below page

Note: - You can download the notices and orders using the download icon available
against each notices and orders.

Update your personal details in GST Records

If your mobile number and email are not updated in the GST records and you do not
have access to that mobile number and email then you can visit your Assessing officer
and request to update your current mobile number along with email.Assessing officer
will process your request and then you can use the option for forget
password/username to retrieve or reset your GST login credentials.
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Sample format for Notice to Return Defaulters

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Sample format for Show Cause Notice for Cancellation of Registration

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Sample format for Order of Cancellation