1. Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns (24/01/2023):
Recently, a functionality of “Automated Drop Proceedings” of GSTINs suspended due to non-filing of returns has been implemented on the GST Portal. This functionality is available for the taxpayers who have filed their pending returns i.e. 6 monthly or 2 Quarterly returns.
- If such taxpayers have filed all their pending returns, the system will automatically drop the proceedings and revoke suspension.
- If the status of the GSTIN does not automatically turn ‘ACTIVE’, then taxpayers are advised to revoke the suspension once the due returns have been filed, by clicking on ‘Initiate Drop Proceeding’ for which navigation is as follows: “Log on to GST Portal > Services > User Services > View Notices and Orders > Initiate Drop Proceeding”
- In case the system does not automatically drop the proceedings or taxpayer is unable to revoke the suspension by clicking on ‘Initiate Drop Proceeding’, then taxpayer is advised to contact Jurisdictional Officer.
Note: This functionality is applicable to the taxpayers whose GSTINs have been suspended after 1st December, 2022.
2. GST tweets updated on cbic:
Read more at: NO LATE FEES IF THE GST REGISTRATION IS CANCELLED INCORRECTLY
4. No Late fees to be charged if returns not filed due to cancellation of GST registration, which was restored subsequently in the case of M/s. Modicum Enterprise (OPC) Private Limited v. Deputy Commissioner of State Tax/Assistant Commissioner of State Tax Calcutta High Court:
- Analysed Section 47 of the CGST Act and noted that, the provision deals with a person, who fails to furnish the returns either under Section 39 or Section 45 or Section 44.
- Observed that, the Respondent did not state that the Appellant had failed to furnish its return within due date however, the reason for non-furnishing of returns was the cancellation of GST Registration on the ground that the Appellant is a non-existing dealer.
- Noted that, the cancellation of Appellant’s GST Registration was restored by the Appellate Authority on the grounds that order was passed on a factually incorrect premise. Hence, the Appellant cannot be penalised by demanding late fee and Section 47 of the CGST Act cannot be attracted.
- Held that, the demand of late fee of INR 5,000/- per return from the Appellant is without jurisdiction and not tenable in the eye of law.
- Restrained the Respondent from demanding any late fee from the Appellant in respect of the returns, which the Appellant intend to file.
- Directed the Respondent to render necessary assistance to the Appellant to facilitate the process of filing of return, so that the Appellant will be able to file the return without the payment of late fee within the period of three weeks.
- Further directed the Respondent not to initiate any fresh proceeding for cancellation of the GST Registration on the ground of non-filing of the return.
Read more at: GSTN Issues Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns
Disclaimer:
This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.
