Guidance on GST penalty

Guidance on GST penalty

Hello

Kindly bear with me with my long story and query below.

I am Nitin from Noida. I am posting below query on behalf of my friend Sanket who is holding GST number.

Sanket and me wanted to start a seller account on Amazon in Feb 2018. For that GST number was required by Amazon.in to get seller account registered. We search a GST consultant who is still working in a firm that work on CA and GST related things. We did not meet this person face to face but via email and phone call. He requested many documents via email which we shared. The GST was registered in the name of Sanket only as all the required documents were ready on his name. We shared Sanket’s email id, mobile number , bank account and PAN etc via email. I was helping Sanket in getting this done using my mail ID.

Once we received GST, we registered on Amazon as a seller and sold only a single item on it till October 2019 as we were not that much active on it. In the meantime, after 6 months, some message related to GST tax was received on my mobile number, I ignored because I was not sure why this was sent on my mobile number. Again on receiving it recently in November 2019, I forwarded it to Sanket to confirm what is the matter. I also contacted to same guy who created GST. He told me that he had asked me verbally to file GST even if it is NIL and I also remember it he said. But since we were new and Sanket was not receiving any notice or message via email or on mobile number , we ignored. But this time, in November, on further investigating, and asking GST portal login details from GST guy, we came to know that in GST profile, the Mobile number registered was of mine (Sanket’s friend) and not of Sanket. Also, email id was of the person who generated GST that means the email id was of the guy who asked us the documents.

Then we got to know since emaild id and mobile number was not of Sanket’s under whose name GST is registered, why we were not getting any notice. Although, we were not that much aware of gst filing but still we somehow un-deliberately ignored GST filing. Now we are puzzled as when we asked another lawyer to start filing GST , it’s a huge penalty and expected to go upto 1 lacs rupee.

We are extremely puzzled and don’t know what to do and where to go to wave of or so. I would humbly request everyone to kindly guide us what to do further. We would be highly obliged.

Thanks in advance.

Asked 4 years ago in GST

Dear Sir,

Hope you are doing well !!

GST return has to be filed by every registered person under GST irrespective of business turnover or profitability in a month. Hence, even if there were no invoices issued during a month, the taxpayer must log in to the GST Portal and submit a NIL return.

If NIL return is not filed, a penalty of Rs.100 per day is applicable until the filing is complete.

However, the officer may levy penalties for non filing of returns. However he may waive it off too, considering there was no tax liability at all. We have had cases in which returns were not filed and post proper submissions, no penalties were levied.

We may assist you in preparation of submission and related communications with the department.

Payal Chhajed

CA, Mumbai

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If you have sold anything online the website would have made TCS on your name which confirms that you have used this GST number.

You can reduce this penalty if you havent used this GST number for long time and save some late fee by surrendering the GST number from the day you last sold any goods on that number. Also there would be a penalty for not paying the GST on goods you had sold online to government.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo

CA, Jaipur

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Hello,

Your GST registration must have been canceled by the officer for non-filling for more than 6 months. You should check the portal for such notice/order.

If you want to continue your business and GST registration, you must start filing your due returns. Rather than reducing the late filing liability, you can do the filing now to stop the liabilities from increasing further.

In case you don't want to continue your business, contact the jurisdictional GST officer for the cancellation of your GST registration. They might cancel your registration without penalty since you haven't made any supply.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hunny Badlani

CA, Madhya Pradesh

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The details could be changed on the GST portal.

Had the CA filed NIL returns? If no, they will have to be filed with late fees.

We may assist you with the same.

Lakshita Bhandari

CA, Mumbai

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Dear Sir,

Here is my reply to your query:

Up to October 2018, you have sold one product and collected the GST on the same but never filed the return for the same amount. Now, if we surrender the GST Number from the back date like from the date number was taken you have to discuss the matter with the GST commissioner and prove him that there is no sale done by you. But as you mentioned that there is one sale and that will also visible on your amazon seller account in that case you have to file the return upto October 2018 with interest and penalty and after that you can surrender the GST number from october 2018 and then visit the GST department to explain the matter to GST Commissioner.

As per the GST act in your case you have to pay all the interest and penalty and have to cancel the GST number from the current date but that is not feasible at all so the other option is you have to visit the GST Department and meet the GST Commissioner.

One more solution is you can just not do anything, in that case GST Department will automatically cancel the registration, but this is more risky as penalties are increasing till the time GST Department doesn't cancel the registration.

Thanks and Regards

Divya Chugh

CA, Noida

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