What will happen if GST Final Return ( GSTR 10 ) not filed on Time
Answer : If GST Final return (GSTR 10 ) is not filed after cancellation of GST number as per Section 45 of CGST Act 2017 then notice can be issued as per Section 46 of CGST Act and thereafter Best judgment Assessment can be made as per Section 62 of CGST Act 2017. Relevant Provisions are as follow:-
Section – 45 of Central Goods And Services Tax Act, 2017 : Final return.
Every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, in such form (Form GSTR-10 of the CGST Rules, 2017) and manner as may be prescribed ( rule 81 of the CGST Rules, 2017 )
Section – 46 of Central Goods And Services Tax Act, 2017 : Notice to return defaulters.
Where a registered person fails to furnish a return under section 39 or 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 [see rule 68 of the CGST Rules, 2017 ]
Section 62 of CGST Act 2017 : Assessment of non-filers of returns
62. (1) Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgment taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates.
(2) Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 shall continue.