Any individual that violates any of the provisions outlined in the GST Act or its regulations faces severe repercussions. So, if you're curious about what would happen if GST not filed for 2 years, let me explain. The GST law stipulates a general penalty for failing to file GST returns or for missing the GST due dates. As of now, the maximum penalty is Rs. 5000 for every return. Read on to know more.
What Happens if GST Return Not Filed for 2 Years?
The Goods and Services Tax framework mandates regular filing to ensure compliance and transparency in taxation. A taxpayer is liable to pay late fees for non-filing. For GSTR-3B, the late fee is Rs. 50 per day (Rs. 25 for CGST and Rs. 25 for SGST). If the return is nil, the penalty reduces to Rs. 20 per day.
If there's tax liability, interest at 18% per annum is charged on the unpaid amount, starting from the due date until payment.
After significant delays, taxpayers may lose the ability to generate e-way bills, disrupting business operations.
The GST department may cancel the registration if returns are not filed consecutively for two tax periods for monthly filers or two quarters for quarterly filers. Post-cancellation, taxpayers cannot legally conduct business under GST.
Non-filing affects input tax credit availability for the taxpayer and their business partners, leading to disrupted supply chains and financial strain. This was all about what if GST return not filed for 2 years.
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What if GST Return Not Filed for 2 Years?
ashish
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33 days
2024-11-29T15:21:10+00:00 2024-12-11T09:27:30+00:00Comment
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