Is it mandatory to file GST-7 Nil?

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HIRENKUMAR (Querist)
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10 May 2024 SIR,
Is it mandatory to file GST-7 Nil?

WE GOT NOTICE
SUB:- Notice to return defaulter u/s 46 for not filing return and Intimation of
theProceedings U/S 62 & 83 (Assessment of Non Filer & Provisional Attachment).

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 Yes, it is mandatory to file a GST return, even if it is nil, if you are registered under GST. Failure to file GST returns can lead to various consequences, including penalties and interest charges. The notice you received under Section 46 indicates that you have been identified as a defaulter for not filing your GST returns.

Here’s what you should consider and do:

1. **File Nil Returns:** If you do not have any sales or purchases to report for a specific tax period, you are still required to file a nil return. This informs the tax authorities that there were no transactions during that period.

2. **Consequences of Non-Compliance:** Non-filing of GST returns can lead to actions such as assessment of tax liability by the tax authorities (under Section 62) and provisional attachment of property (under Section 83) to safeguard revenue interests. It may also attract penalties and interest.

3. **Respond to the Notice:** It’s crucial to respond promptly to the notice you received. This usually involves:
- Checking the details mentioned in the notice.
- Understanding the specific sections of the GST Act (62 & 83) under which the notice has been issued.
- Taking necessary action, such as filing the pending returns and providing any required explanations or documents.

4. **Consult with a GST Expert:** If you are unsure about how to proceed or the implications of the notice, it’s advisable to consult with a GST expert or a tax advisor. They can help you understand the notice, assist in filing the necessary returns, and guide you through any subsequent steps required to resolve the issue.

In conclusion, filing GST-7 (or any applicable GST return) is mandatory, even if there are no transactions to report (nil return). Ignoring the notice and failing to comply can lead to further complications and penalties. It’s best to address the notice promptly and ensure compliance with GST regulations.