TaxTMI 
TaxTMI 
Procedures for initiation of action on non-filers of returns under TNGST Act, 2017 - instructions issued
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....2019. 2. Commissioner of Commercial Taxes, Circular No. 28/2019, (PP2/38242/2019), dated 11/12/2019. 3. Principal Secretary / Commissioner of Commercial Taxes, letter no. RI/E-845773/2022, dated 22/08/2022 4. Government of India, Ministry of Finance, Department of Revenue, Central Board of indirect Taxes and Customs, Notification No. 18/2022, Centre dated 28/09/2022. 5. Government of India, Ministry of Finance, Department of Revenue, Central Board of indirect Taxes and Customs, Notification No. 19/2022, Centre dated 28/09/2022. In the reference first cited, instructions regarding clarity on the roles and responsibilities and procedures to be followed by the Proper Officers....
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.... proceed to assess the tax liability under Section 62 of the Act for the said person. 2. Vide reference second cited, detailed circular with regard to cancellation has also been issued in this regard. 3. The powers for cancellation for registration is vested with Proper Officer under Section 29(2) of the TNGST Act 2017 and Rule 21 of the TNGST Rules 2017, read with Notification no. 18/2022 - Central Tax dated 28.9.2022 with effect from 01.10.2022, and in Notification no.19/2022 Central Tax dated 28.9.2022 with effect from 01.10.2022 as follows. Sl. No. Event Initiation of cancellation. 1 Tax payers filing monthly returns in Form GSTR-3B Not filed for a continuous period of si....
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....spective assessment shall follow up with the tax payers and monitor continuously until filing of returns within the time period not exceeding 30th of the succeeding month. 6. Even after issue of above instructions to watch the return filing meticulously, the status of non-filing of such top revenue tax payers, is increasing month on month. This is due to non-monitoring of the filing of returns by the top taxpayers. There may be cases where the top tax payers fail to file returns for more than 6 months. Proper action at the appropriate time is not taken by the Proper Officers in such cases. Strict supervisory action and continuous monitoring in this regard is to ensure compliance in fil....
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....e. (ii). The Registered tax payer on receipt of FORM GSTR- 3A, shall file the return within 15 days from the date of receipt of the said FORM GSTR 3A notice. For those who file the returns within 15 days, the notice issued in FORM GSTR-3A shall be deemed to have been withdrawn. The details of defaulters who fail to file FORM GSTR-3B returns even after expiry of FORM GSTR-3A time limit, is reflected in the Proper Officer's back office login. (iii) The Proper Officer should initiate the task to take action under Section 62 of the TNGST Act, 2017, to assess the turnover under best of judgement taking in to account all the relevant materials available or gathered in respect of defaulting registered tax persons. (iv)&nbs....
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....f non-filers:- a. Non-filers of returns in Form GSTR-3B (Regular / QRMP):- (i) . If the registered tax payer fails to file monthly returns in Form GSTR-3B, for continuous period of six months or quarterly return filer in Form GSTR-3B for two consecutive tax period, besides Best of Judgement orders issued under Section 62 and consequent recovery action, under Section 79, the Proper Officer shall initiate cancellation and suspend the registration of the Registered Tax Payer as provided under Section 29 (2), of the TNGST Act, 2017. b. Non-filers of GSTR-4 (Composition tax paver) (ii) In respect of Composition tax payer, the Proper Officer shall prepare a list of defaulters and action shall be taken under Sec....