What happens If GST Return is not Filed for 2 Months?

Goods and Services Tax (GST) is a consumption-based tax that is levied on the supply of goods and services in India. GST returns must be filed regularly by businesses registered under the GST Act. Failure to file GST returns can have severe consequences for the taxpayer. In this blog, we will discuss the implications of not filing GST returns for two months.

The first implication of not filing GST returns for two months is the imposition of a late fee. The late fee for not filing GST returns for the first time is Rs 50 per day, per return (i.e., a total of Rs 100 per day for two returns). After 15 days of delay, the late fee increases to Rs 100 per day, per return (i.e., a total of Rs 200 per day for two returns).

The second implication of not filing GST returns for two months is the imposition of interest. Interest is charged at the rate of 18% per annum on the amount of tax due, from the due date of filing the return until the date of payment. Thus, the longer the delay in filing GST returns, the higher the interest payable.

The third implication of not filing GST returns for two months is the loss of input tax credit. Input tax credit is the credit that businesses can claim for the GST paid on purchases. However, if a business does not file GST returns for two months, it will not be able to claim input tax credit for the corresponding period.

The fourth implication of not filing GST returns for two months is the possibility of receiving a notice from the tax authorities. Non-filing of GST returns can lead to the initiation of legal proceedings against the taxpayer, which can result in penalties, fines, and even imprisonment.

In conclusion, it is imperative to file GST returns regularly and on time to avoid the consequences discussed above. The late fee, interest, loss of input tax credit, and legal proceedings can have severe financial and reputational implications for the taxpayer. Therefore, it is essential to comply with the GST regulations and file returns promptly.