Procedure lapse under GST

[VIGNESH]

Sir. What are the activities considered as Procedure lapse under GST, and consequences for the same! kindly highlight

[Alkesh Jani]

Shri

As per your query, my view is that in GST Act, 2017 (CGST, IGST and S/UT GST), wherever, term "Prescribed" is used and is not adhered to by the taxpayer can be considered as 'Procedure lapse'. applicable late fees, penalty may be imposed considering the facts and circumstances of the case.

For example, non-filing of GSTR-3B on or before due date, is procedure lapse, late fees, interest etc is payable. Issuance of Invoice with incomplete details, general penalty may be impose.

Thanks

[Ganeshan Kalyani]

Alkesh Sir if September month 3B is filed after due date can a taxpayer claim ITC of last year invoice citing delayed filing as a procedure lapse.

[Alkesh Jani]

Shri Ganeshan Kalyaniji,

The query raised was general in nature and reply was given accordingly.

However, the query raised by you needs to be discussed in the larger taxpayer interest, therefore, it is my humble request to raise this query a fresh and views will be submitted at the earliest.

Thanks

[Ganeshan Kalyani]

Sir, thank you for your suggestion.

I understand that if I mention 4 digits HSN instead of 6 digits on invoice then that would be a procedural lapse. But how can a delay in filing of return would be procedural lapse especially in current regime where ITC is connected to timely filing of return. Hence I asked the query. Nothing else Sir.

Thanks.

[Shilpi Jain]

Procedural lapses could be say disclosing the amount in the wrong table or column or documentation not being proper, etc. In case there are procedural lapses, the same are not seen very seiously and the benefit eligible to the assessee is still given to them.

[Shilpi Jain]

The main principle of condoning the procedural lapse is that the person is actually eligile or entitled for the benefit and there is no doubt regarding that. Merely because the set procedure in the law was not followed, the benefit cannot be denied.

Another example could be availng the transitional credit in GSTR-3B instead of TRAN-1. Be careful, in this case the time limit is not a procedural condition but merely the eligible credit is availed in 3B instead of TRAN-1 within the time.

[Alkesh Jani]

Shri Ganeshan Kalyani ji,

The example given by me in the reply is indicative in nature. Moreover, it given just indicate that consequences can be in form of late fees and penalty.

Thanks

[KASTURI SETHI]

Procedural lapse is a technical lapse where there is no revenue implication i.e.no revenue loss. This is one of the major criteria to determine procedural lapse.

AI Summary

Procedure lapse under GST: technical non compliance may attract fees or penalties, but pure procedural errors can be condoned. Procedure lapse under GST is non-adherence to prescribed procedural steps or formats-such as late return filing, incomplete invoice details, misclassification within return tables, or claiming transitional credit in the wrong form-which is typically treated as technical non-compliance. Consequences are administrative (late fees, interest, penalties), but where the lapse causes no revenue loss and the taxpayer is clearly entitled to the benefit, authorities may condone the lapse and allow the benefit; by contrast, substantive time limits or conduct causing fiscal prejudice may lead to stricter enforcement.