Notice to GST Return Defaulters – Section 46 of GST

Filing GST returns on time is crucial for compliance with the GST framework in India. To ensure timely filing, Section 46 of the CGST Act empowers tax authorities to issue notices to registered taxpayers who fail to furnish their returns under Section 39, Section 44, or Section 45 of the CGST Act. In this blog, we will explore the provisions, implications, and compliance aspects of Section 46 – Notice to Return Defaulters.

Understanding Section 46 of the CGST Act

As per Section 46 of the CGST Act, 2017:

“Where a registered person fails to furnish a return under Section 39, Section 44, or Section 45, a notice shall be issued requiring him to furnish such return within fifteen days in such form and manner as may be prescribed.”

This provision came into force on 1st July 2017 and serves as a mechanism to enforce timely compliance with return filing obligations under GST.

Applicability of Section 46

A taxpayer may receive a notice under Section 46 in the following scenarios:

• Failure to file GSTR-3B (Monthly Return) or GSTR-4 (Composition Dealer Return) under Section 39.

• Non-filing of the Annual Return (GSTR-9) under Section 44.

• Failure to submit the Final Return (GSTR-10) after cancellation of registration under Section 45.

Timeframe for Compliance

• The taxpayer is required to file the pending return within 15 days from the date of issuance of the notice.

• The return must be filed in the prescribed format and manner as notified by the government.

Consequences of Non-Compliance

If the taxpayer fails to comply with the notice under Section 46, the following consequences may arise:

1. Assessment of tax liability under Section 62:

   If returns are not filed within 15 days, the GST Officer may proceed to assess the tax liability based on available information.

2. Levy of Late Fees and Interest:

   • Late fees under Section 47 of the CGST Act (₹50 per day for normal taxpayers and ₹20 per day for composition taxpayers) will apply.

   • Interest at 18% per annum under Section 50 of the CGST Act will be levied on unpaid tax.

3. Suspension or Cancellation of GST Registration:

   Continuous non-filing of returns can lead to the suspension or even cancellation of GST registration under Section 29 of the CGST Act .

Rule 68 – Procedure for Notice Issuance

As per Rule 68 of the CGST Rules, the tax department may issue a GST CMP-5 or GSTR-3A notice electronically via the GST portal or email. The notice will specify the pending return and the due date for compliance.

How to Respond to a Notice under Section 46?

1. Log in to the GST portal and check for any pending returns.

2. File the overdue return within 15 days from the date of notice issuance.

3. Pay any applicable late fees and interest before submission.

4. Download and keep a copy of the filed return and acknowledgment for future reference.

Conclusion

Section 46 of the CGST Act is a critical compliance measure that ensures timely GST return filing. Businesses must stay updated with their filing obligations to avoid penalties, interest, and potential legal actions. If you receive a notice under Section 46, act promptly to file your pending returns within the stipulated time to prevent further consequences.

FAQs

1. What should I do if I receive a notice under Section 46?
You must file the pending return within 15 days from the notice date to avoid further legal actions.

2. Can I request an extension for filing returns after receiving the notice?
No, Section 46 does not provide an extension beyond 15 days. Failure to file may result in assessment under Section 62.

3. Will my GST registration be cancelled for non-filing of returns?
Yes, continuous non-compliance can lead to suspension or cancellation of registration under Section 29.

For any further assistance on GST compliance and return filing, consult us at +91 9769647582 or visit the official GST portal.