Goods and Services Tax (GST) authorities can freeze your bank account, attach your property, if you do not file your (GST) returns on time. A new set of regulations have authorised the (GST) authorities to ensure businesses furnish their returns on time.
The government has directed the senior officials of the Central Board of Indirect Taxes and Customs (CBIC) to go strong against the defaulters, the Times of India reports. The CBIC issued the three-page standard operating procedure (SOP) on Tuesday.
The SOP provides, "For the purpose of assessment of tax liability... the proper officer may take into account the details of outward supplies available in the statement furnished under section 31 (Form GSTR-1), details of supplies auto-populated in FORM GSTR-2A, information available for e-way bills, or any other information available for any other source, including from inspection."
With around one crore GST-registered businesses failing file their returns in due time, the new set of norms will allow (GST) authorities to either attach their property or freeze their bank accounts, if the entities do not file their tax returns despite repeated reminders.
According to the report, the GST officials will begin the process to intimate the businesses three days before the due date for filing GSTR-3A of the final returns. The deadline for the same is by 20th of every month.
Post the due date, a system-generated message reminding the defaulters to pay will be sent to them. The communication will also be sent to the authorised signatories of the entities, partners, proprietors, directors of companies or Kartas in case of HUFs, the report adds.
In case an entity fails to comply, an electronic notice will be served to it five-days post the deadline, giving the firm 15 days to file the returns.
In the event of no response from the entity (after 15-day deadline gets over), the tax officials have been directed to evaluate the tax liability after taking into account the available data.
The officials can then initiate recovery action, as per the SOP, if the entities fail to answer the review order for 30 days, the report states.