GSTR-3A Notice for Defaulters of GST Return Filing

GSTR-3A is default notice sent to taxpayers for not filing GST returns. But when is it issued, and what happens if one fails to respond to this notice? Get answers to these questions and more in our comprehensive article on GSTR-3A.

Key Takeaways

• If taxpayers fail to file regular returns, a GST notice in form GSTR-3A is sent to them.
• GSTR-3A is not a GST return but a notice.
• File the return in 15 days of receiving the GSTR-3A notice, with the applicable late fee and interest for any GST due.
• Any failure in responding to the notice will invoke best judgement assessment.

What is GSTR-3A Notice?

GSTR-3A is not a return. It is a GST notice sent to the taxpayers registered under GST who fail to file regular returns that they must file monthly, quarterly and annually as notified by the Central Board of Indirect Taxes and Customs (CBIC). Hence, GSTR-3A notice become increasingly important.

Who will Receive GSTR-3A Notice?

GSTR 3A will be issued by the tax authorities to a person not filing the below GST returns:

• GSTR-3B (regular dealer)
• GSTR-4 (Composition dealer)
• GSTR-5 (Non-resident)
• GSTR-6 (ISD)
• GSTR-7 (Person liable to deduct TDS)
• GSTR-8 (Person liable to collect TCS)
• GSTR-9 (Annual return)
• GSTR-10 (Final return)

What Should a Taxpayer do After Receiving GSTR-3A?

On receiving notice in GSTR-3A Notice, the defaulter has to file the return within 15 days from the date of notice along with penalty and late fees.  

What will be the Applicable Penalty & Late Fees?

Interest

• Interest at 18% per annum has to be paid by the dealer.
• Interest has to be calculated by the taxpayer on the amount of outstanding tax to be paid.
• The time period for interest calculation will be from the due date of return to date of actual payment.

Late Fees

For annual return

• The Late fee is Rs.200 per day (Rs.100 per day per Act ).
• The maximum late fee is 0.25% of the taxpayer’s turnover in the state.

For other returns

• The Late fee is payable at Rs.100 per day per Act.
• So the penalty works out to Rs.200 per day (Rs.100 under CGST & Rs.100 under SGST).
• The maximum penalty that can be levied is Rs.5,000. There is no late fee on IGST. 

What Happens if the Dealer Still does not File his Return?

If the dealer still does not file return, provisions of Section 62 will apply. The proper officer will assess the tax according to his best judgment using the information available with the department. The officer may proceed with best judgment assessment without giving another opportunity of being heard in this stage. The penalty will be applicable of Rs. 10,000 or 10% of the tax due, whichever is higher.  

Can the Taxpayer File Return After the 15 Days?

If the return is filed after 15 days but before the proper officer passes an assessment order then the notice will be assumed to be withdrawn.  

Format of Form GSTR-3A Notice