Non-filing of Goods and Services Tax (GST) returns may result in attachment of bank accounts and even cancellation of registrations. This move is a part of Finance Ministry’s Standard Operating Procedure (SOP), which was issued recently, reports stated.

It is mandatory for all the assessees to file their returns on monthly or on quarterly basis, Business Line reported. However, we could not verify the story at the time it was filed.

As per the report, around 20 percent of GST assessees fail to file their returns, which impacts the revenue collection. In order to cater such defaults on GST, the Central Board of Indirect Taxes and Custom (CBIC) has formed the SOP.

Before taking any action, system-generated notices are sent to the defaulters and if dues are not paid in five days once the notice is received, another notice, issued under Form 3-A, is sent mandating that the payment be made within 15 days.

Even if the payment is not made within15 days, an officer will evaluate the tax liability of the concerned individual. A government representative will demand recovery of the returns after issuance of Form GST ASMT-13.

The form will be withdrawn if the dues are paid and if not, then the cancellation of registration will be initiated under Section 29 of the CGST Act.

Section 83 of the CGST Act, clarifies that registration cannot be cancelled without an opportunity to the assessee to be heard.

(With input from agencies)