Sandipan Mitra is the CEO and co-founder of Pice. He boasts eight years of experience in the B2B and fintech sector. Sandipan's journey includes significant roles at multiple Indian Unicorns Including Product at PayU, and as founding member / VP, Product at Open Financial Technologies.
3 Mar 25
5 mins
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GSTR 3A Notice for Defaulters of GST Return Filing
GSTR-3A is a notice for taxpayers who miss GST return deadlines.
Issued to various taxpayers, including regular dealers, ISDs, and TDS/TCS collectors.
Must respond within 15 days by filing returns with late fees and interest.
Non-compliance leads to penalties, including best judgment assessment.
Timely filing avoids legal action, and professional help ensures accuracy.
The GSTR-3A notice is an official document that the GST authorities send to taxpayers who do not file their returns within a certain deadline. It acts as a compliance enforcement measure that urges defaulters to fulfil their tax obligations on time.
This notice serves an important purpose in upholding GST compliance requirements by ensuring on-time tax collection and compliance with filing rules. To know more about this notice, scroll down.
What Is the GSTR-3A Notice Form?
Under GST regulations, registered taxpayers whose turnover surpasses the specified threshold limit must submit GST returns either monthly or quarterly, along with an annual return. If they fail to comply, the government issues a notice called GSTR 3A.
This is a notice form rather than a return form and is specifically sent to taxpayers who have not filed their GST returns for a particular tax period on time.
Who Receives the Notice Under the GSTR-3A Form?
Tax authorities issue GSTR-3A to individuals or entities that fail to file specific GST returns within the due date. This notice is sent to:
Regular dealers who have not filed GSTR-3B returns.
Composition dealers missing their GSTR-4 submission
Non-resident taxpayers who have not filed GSTR-5
Input Service Distributors (ISD) failing to submit GSTR-6
Persons responsible for TDS deductions who have not filed GSTR-7
Entities liable to collect TCS but missing their GSTR-8 submission
Taxpayers who have not submitted their GSTR-9 (Annual Return)
Businesses required to file a GSTR-10 (Final Return) but have not done so.
Failure to comply with GST return filing obligations may lead to penalties and further action from tax authorities.
The GSTR-3A notice is a reminder to the taxpayers to fulfill their GST return filing obligations. It reminds defaulters to be compliant with GST rules. It reminds defaulters to be compliant with GST rules. It warns them to refrain from incurring any penalty and potential legal actions.
What Should One Do Upon Receiving GSTR-3A Notice?
Upon receiving the GSTR-3A notice, registered taxpayers must file the overdue return within 15 daysfrom the notice date, along with the applicable late fees and penalties for the delay.
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What Are the Late Fees and Interest Charges for Failing to File the Returns?
Taxpayers who fail to file their GST returns within the due date have to pay interest at 18% per annum on the amount of tax outstanding. The interest is charged from the day after the due date until the day of GST payment.
The late fees for not filing returns are as follows:
For Annual Returns:
A late fee of ₹200 per day (₹100 per day under CGST and ₹100 per day under SGST).
The maximum late fee is 0.25% of the taxpayer’s turnover in the state.
For Other Returns:
A penalty of ₹100 per day per Act is charged (₹100 under CGST and ₹100 under SGST), totalling ₹200 per day.
The maximum penalty applicable is capped at ₹5,000.
What Are the Consequences a Taxpayer Will Face if They Fail to File the Return After Receiving the Notice?
If the taxpayer does not file the tax return even after receiving the GSTR-3A notice, Section 62 of the GST Act will be applied. This means the tax authorities will make a best judgment assessment, where the assessing officer assesses the tax payable based on available data.
Additionally, the defaulter will face a penalty of ₹10,000 or 10% of the outstanding tax amount, whichever is higher.
Is it Possible for a Taxpayer to File a Return After the 15 Day Period Has Passed?
A taxpayer can submit the pending return even after the 15-day period if the proper officer has not issued an assessment order under Section 62 (Best Judgment Assessment).
What Is the Format of GSTR-3A?
The official format of the GSTR-3A Notice can be accessed:
The GSTR-3A notice acts as an important reminder for compliance with GST provisions by businesses. The taxpayers need to respond to the notice within 15 days in order to escape the penalty. Taking action within time is significant for a good compliance history.
Being a bit complicated to comply with GST, especially for first-timers, opting for professional services will assist them in filing correct and timely returns.
💡If you want to streamline your payment and make GST payments via credit & debit card, UPI consider using the PICE App. Explore the PICE App today and take your business to new heights.
FAQs
What is a GSTR-3A notice?
GSTR-3A is a compliance notice sent to taxpayers who fail to file their GST returns on time. It serves as a reminder to file overdue returns within 15 days to avoid penalties and legal action.
Who receives a GSTR-3A notice?
It is issued to various taxpayers, including regular dealers, composition dealers, non-residents, ISDs, TDS/TCS collectors, and businesses failing to file GSTR-9 or GSTR-10.
What happens if I don’t respond to the notice?
If the return is not filed within 15 days, authorities may conduct a best judgment assessment under Section 62, leading to penalties of ₹10,000 or 10% of the tax due.
What are the late fees and interest for non-filing?
A penalty of ₹200 per day applies (₹100 under CGST and ₹100 under SGST), capped at ₹5,000 for regular returns. For annual returns, it’s ₹200 per day, with a maximum of 0.25% of turnover. Interest at 18% per annum is also charged.
Can I file my return after 15 days?
Yes, you can file after 15 days if no assessment order has been issued under Section 62. However, delays may increase penalties and interest, making timely compliance crucial.
Sandipan Mitra is the CEO and co-founder of Pice. He boasts eight years of experience in the B2B and fintech sector. Sandipan's journey includes significant roles at multiple Indian Unicorns Including Product at PayU, and as founding member / VP, Product at Open Financial Technologies.
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