Authorities can attach the property and bank accounts as well as cancel the registration of goods and services tax (GST) defaulters, according to a new government notification.
This move comes after authorities found that about 20 percent of GST assessees do not file returns, hurting revenue collection. The government has set a steep monthly target for GST collections for the next four months at Rs 1.1 lakh crore.
The Central Board of Indirect Taxes and Custom (CBIC) in a notification issued on December 24 laid down a standard operating procedure be followed against non-filers of returns.
“In deserving cases, based on the facts of the case, the Commissioner may resort to provisional attachment to protect revenue under section 83 of the CGST Act.”
“Further, the proper officer would initiate action under sub-section(2) of section 29 of the CGST Act for cancellation of registration in cases where there turn has not been furnished for the period specified in section 29.”
The notice statement stated that authorities has to serve a notice in FORM GSTR3A to a registered person who fails to furnish return under section 39 or section 44 or section 45 (herein after referred to as the“defaulter”) requiring him to furnish such return within fifteen days.
In case the return is still not filed by the defaulter within 15 day of the said notice, the officer may proceed to assess the tax liability of the said person under section 62of the CGST Act, the statement said.
Section 62 provides for assessment of return non-filers of registered individuals who fails to furnish return under section 39 or section 45 even after service of notice under section 46, it said.
In addition to tax assessed, return non-filers will also be liable to pay interest and penalty in accordance with the provisions of the Act.
First Published: Dec 27, 2019 12:02 PM IST
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