GSTR 3B is the return that needs to be furnished through the regular GST taxpayers. It consists of the summary information of the outward supplies built and the information of the ITC. The last date for furnishing the GSTR 3B next month is date 20 but the government can prolong the last date. What is to be executed if you will not furnish the GSTR 3B on the last date? What will be the late fee, penalty, and additional situations? Let’s see:
GSTR 3B Late Fees Levied U/S 47 of the CGST Act, 2017
The late fees are the initial situation that you shall see towards the non-filing of GSTR 3B. The late fine shall get raised every day until it reaches the extreme point. The fee shall automatically be added for the subsequent month’s GSTR 3B. Furthermore, you can not edit it or you cannot proceed to furnish the return until you furnish the late fees.
From June 21 the late fees shall be levied and stand as follows:
| Tax Liability | Per Day | Maximum
| |||||
| Nil Liability | Rs. 20 | Rs. 500 | |||||
| Others | Rs. 50 | Rs. 2,000 | Rs. 5,000 | Rs. 10,000 | |||
AATO means annual Aggregate Turnover. Aggregate Turnover consists of taxable supplies, exempt supplies, export, and inter-state supplies of persons possessing the same PAN. The calculation shall be on the basis of India. In layman’s language, AATO (Annual Aggregate Turnover) could be referred to as the yearly sales.
Example: Suppose Mr Bhulakkad shall not furnish GSTR 3B from Dec 2021. The AATO of the firm is Rs 1.4 cr. Upon inquiry through the management at the end of the year, he obtained out the mistake and urged you to calculate the sum of the late fees. What shall be the total late fees if you can think that he shall furnish the due returns on 1st April 2022.
Answer: Here Mr Bhulakkad did not file the GSTR 3B from December 2020. Now the GST system will not allow him to file the subsequent GSTR 3B, the late fees will be calculated for all the months separately. The total late fees payable if Mr Bhulakkad files the returns on 01st April 2022 will be :
| Month | Due Date* | Filling Date | Delay | Late fee if Nil Liability | Late Fee if other |
| December | 20-01-2022 | 01-04-2022 | 71 | Capped at Rs. 500 | Capped at Rs. 2,000 |
| January | 20-02-2022 | 01-04-2022 | 40 | Capped at Rs. 500 | 2,000 |
| February | 20-03-2022 | 01-04-2022 | 12 | 240 | 600 |
| March | 20-04-2022 | 01-04-2022 | N.A. | – | – |
| Total | – | – | – | Rs 1240 | Rs 4600 |
It is supposed that the government has not prolonged the last date.
So you can find out that there is a domino effect for not furnishing the GSTR 3B. The late fee shall be on rising until it hits the extreme limit.
| Month | Due Date* | Filling Date | Delay | Late fee if Nil Liability | Late Fee if other |
| December | 20-01-2022 | 01-04-2022 | 71 | Capped at Rs. 500 | Capped at Rs. 2,000 |
| January | 20-02-2022 | 01-04-2022 | 40 | Capped at Rs. 500 | 2,000 |
| February | 20-03-2022 | 01-04-2022 | 12 | 240 | 600 |
| March | 20-04-2022 | 01-04-2022 | N.A. | – | – |
| Total | Rs 1240 | Rs 4600 |
It is supposed that the government has not prolonged the last date.
So you can find out that there is a domino effect for not furnishing the GSTR 3B. The late fee shall be on rising until it hits the extreme limit.
GSTR 3B Late Fees Levied U/S 50 of the CGST Act, 2017
If the assessee is needed to furnish the tax in the said period, however unable to pay, then for the late payment the interest of 18% shall come under the tax. The interest shall be payable only if you utilize the cash ledger balance to file the taxes. In addition to that, if you possess enough ITC and you do not file the taxes through net banking/challan/balance which is added in the cash ledger, then there is no interest to be taxed on you. There is no case of the highest capping for interest.
From our previous example Let’s say that Mr Bhulakkad seeks you for the interest computation. For that, he asked you that the monthly Input Tax credit for every month is Rs 18,000 and the output tax is Rs 28000. Thus every month Rs 10,000 shall be furnished through a cash ledger balance. Hence the interest shall be mentioned as:
| Month | Due Date* | Payment Date | Delay | Paid by debiting cash ledger | Interest |
| December | 20-01-2022 | 01-04-2022 | 71 | 10,000.00 | Rs. 350 |
| January | 20-02-2022 | 01-04-2022 | 40 | 10,000.00 | Rs. 197 |
| February | 20-03-2022 | 01-04-2022 | 12 | 10,000.00 | Rs. 59 |
| March | 20-04-2022 | 01-04-2022 | N.A. | 10,000.00 | Rs. 0 |
Hence, for non-filing for GSTR 3B, the interest shall indeed be liable to pay and the amount shall be added to Rs 4600 late fees computed as above.
E-Waybill Generation Rule Under 138E – Restriction If Two Consecutive GSTR 3B Not Furnished
Towards the continuous period of 2 tax periods, if the individual has not filed the returns then it results in stopping the generation of E-Way Bill towards every kind of outward supply for that individual. After the successful filing of the GST returns, the restrictions arrived. E-way bill restrictions shall result in the limitations of:
Outward supply valued more than 50,000 outside the state
Outward Supply of specified values as notified by the State Government inside the state.
Hence in our illustrations, the generation of e-way bills for the company shall get restricted towards not furnishing the returns of December and January.
GSTR 3B Penalty Under Section 122(1)(iii) Levy After Due Date
Towards specific crimes, there are laws subject to GST penalties. One of the crimes is not furnishing the collected tax amount in 3 months from the last date. The penalty shall be relevant to the tax amount obtained in case of the min of Rs 20000. Hence in continuation of the mentioned instance, the last date to file the tax collected in Dec month is dated 20th Jan. If Mr Bhulakkad does not file the taxes on 20th April, including the late fees and interest, a penalty of Rs 28,000 will be taxable.
GST Registration Discontinuing and Cancellation Under Section 29(2)
If the regular assessee will not furnish the return for the continuous 6 months then the GST officer might refuse the GST enrollment of the individual. Prior to the cancellation, the officer shall provide you with the notice where it is mentioned that clarification is needed from the individual and that person is needed to answer in 7 working days providing the reason to the officer for not cancelling the GST registration. But it is not required for the officers to execute the cancellation immediately post to the non-filing of the 6th continuous month’s return, but if the officer urges for the start of the process of your GST registration cancellation then your GSTIN shall be suspended. Unless the suspension gets refused, the enrollment individual shall not supply any taxable goods. Hence it will carry the business.
In continuation of our earlier example, if Mr Bhulakkad will not furnish the returns from December 2021 to May 2022, it then results in providing the notice and executes the procedure of cancellation of GST registration.
Steps to Recovery Process Under Section 79
This is the harder step that can be obtained for not furnishing the GSTR 3B. Many reminders and notices are needed to be saved prior to the execution of the recovery. The flow of the reminders and process is mentioned as:
First Reminder 3 Days: prior to the last date to inform the assessee to furnish the return on or before the last date.
Second Reminder Immediately: post to the last date to notify that the return has still not been furnished on the last date.
Notice: 5 Days after the due date, notice in Form GSTR 3A needed the individual to furnish the returns in 15 days.
Order: Anytime after the lapse of 15 Days of service of notice in form GSTR 3A, given return, has not been furnished. The officer perhaps continues with the assessment. In this, the officer shall calculate the tax liability to the greatest of his or her judgment. The officer might consider the information of the outward supply filed through the person, inward supply revealed through his or her suppliers, e-waybill details, etc. Order will be declared in ASMT – 13 and summary will be uploaded in Form DRC -07 by an officer.
Initiation of proceedings: After 30 Days of serving order in form ASMT -13, the officer might execute the recovery proceeding beneath section 78 and the real recovery beneath section 79. Under the GST regime, the officers have the powers to improve the tax payable from your debtors, refund dues, seized Goods, Property, etc.
It is important to declare that the officers might proceed to execute the assessment. The word might indicate that it is not binding on the officers that they need to serve the GSTR 3A notice. The officers continue to work any day after the completion of 15 days. There is no tool that can measure the exact recovery time.
In the example, As of 01st April 2022, the notice in Form GSTR 3A must have been issued for December, January, and February. Therefore
- For Feb 2022 Mr Bhulakkad can furnish the return so that the officer will not proceed through tax computation.
- For January 2022, if the Order in Form ASMT 13 is previously circulated, then Mr Bhulakkad can furnish the GSTR 3B which has an outcome in a decline of subsequent proceedings.
- For December 2021, if ASMT -13 is previously circulated and 30 days from service is completed, then Mr Bhulakkad can pay the dues and file GSTR 3B to stop the initiation of genuine recovery.
Limitation of ITC of Recipients
The major condition to avail the ITC is the payment of the tax to the government through the supplier of supplies to which the recipient avails the ITC. When GSTR 3B has not been furnished then it sounds that the supplier has not filed the taxes to the government yet there are exceptions such as the taxes can be furnished in GSTR 9 or via Form DRC 03. Basically, the majority of the businesses furnished the taxes through GSTR 3B. This is the most overlooked and argued outcome of not furnishing the GSTR 3B as there is no tool given to the recipient to validate the taxes of the specific inward supply that has been furnished to the government or not through the supplier.
