GST registration of defaulters under lens

In a transfer that might make it troublesome for businessmen to evade submitting their month-to-month monetary transactions below the Goods and Services Tax (GST) regime, the federal government has directed taxmen to strategy non-filers and remind them to file month-to-month returns, two officers mentioned.

The authorities has additionally directed officers to cancel GST registration of continual defaulters, who haven’t filed GSTR-3B— the abstract return indicating provides made, enter tax credit score availed and tax fee made in a month—for a number of months, the officers working for the Union finance ministry mentioned requesting anonymity.

The course of has began this month after authorities observed that 1000’s of GST registered entities, with important turnovers, have out of the blue stopped submitting month-to-month returns, the officers mentioned. November 20 was the due date for submitting of returns for the month of October by registered entities with greater than Rs 5 crore turnover. The transfer is aimed toward checking tax evasion whereas educating taxpayers that they will now not con the system as authorities can simply monitor them by information analytics and synthetic intelligence, the officers added.

After a high-level assembly within the division of income on this matter, the federal government directed taxmen to strategy greater than 25,000 GST assesses who didn’t file GSTR-3B by November 20, one of many officers mentioned. They have been requested to steer such non-filers personally in order that they file their returns by Monday, he added.

“These top 25,000 taxpayers, who have not yet filed their returns, were identified on the basis of last month’s statistics. Interestingly these top GST taxpayers had filed their returns in the previous month, but did not file the same this month, which is a matter of concern,” he mentioned.

About eight million GSTR-3B returns have been filed in November month, he mentioned. “It was also directed at the meeting that all such taxpayers who have not yet filed their returns shall be sent SMS and email communications,” the official mentioned.

The GST Network has additionally been directed to ship 1 lakh SMS and e-mail reminders per day to the taxpayers, significantly to the defaulting taxpayers, to file the return in due time, he mentioned.