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Non Filing of ITR after GST Registration Can Cost Dearly

Registered in GST and haven't filed ITR

We have all been in the situation where we got caught with our hand in the proverbial cookie jar. The consequences of getting caught doing something we should not be doing can be minor or drastic, depending upon the act. The rollout of GST had many previously unregistered business owners, under the previous regimes, finding themselves in the position to register. Having registered for GST, an individual can no longer avoid filing their ITR, had they avoided it in the past. If you continue to not file your ITR after registering under GST, you can find yourself in the proverbial “cookie jar” with heavy consequences.

Penalties for Not Filing Income Tax Return

If you fail to e-file your tax return, then you will face penalties u/s 234A of 1%/month of taxes due up to the date of filing. Additionally, the IT department might decide to put your business under scrutiny and take a closer look at your activities, which can result in penalties, including prosecution, in extreme cases.  U/s 276CC, if the ITD finds you purposefully failed/evaded taxes, then you can face the following penalties:

  • You can face imprisonment from 3 months to 2 years, if the taxes evaded was under Rs. 25 lakh
  • You can face imprisonment from 6 months to 7 years, if the taxes evaded was more than Rs 25 lakh

Advance Tax Penalties

For individuals who do not have TDS, the advance tax system was set up by the government to collect taxes at regular intervals, i.e. quarterly. By not filing your business tax return you can face penalties u/s 234B/C.

  • 234B – For default on payment of advance tax, you will be charged at 1%/month on taxes amount due as of 31st March of the FY, till payment is made.
  • 234C – If you fail to pay your advance tax installments, then interest is levied on the shortfall.

File Business Income Tax Return with H&R Block

Notices You May Receive for Not Filing ITR

Before you are charged with penalties/prosecution, the ITD will give you the chance to rectify the situation by issuing you notices, such as:

  • Non-Compliance – the notice informs your that you have not yet filed your returns and that the last date to file is 31st March of AY.
  • Tax-Audit Notice – For businesses whose gross turnover is over Rs. 1 crore during any year and professionals whose gross receipts cross Rs 25 lakh are liable for tax audit. If the person fails to get his audit done by the due date then he/she will be liable for a penalty of 0.5% of the turnover or gross receipts with a maximum Rs 1,50,000 penalty. So, it is advisable to file your returns, as responsible citizens by the due dates to avoid penalties or prosecution in rare circumstances.

ITR Due Dates

Type of BusinessDue Dates
Working Partner/LLPJuly 31st and September 30th(audit cases)
Partnership/LLPJuly 31st and September 30th (audit cases)
LLPJuly 31st and September 30th(audit cases)
TrustJuly 31st and September 30th (audit cases)

So, while it is fun to break the rules, some rules should be followed else the consequences can cost us dearly. Having registered yourself under GST, let the tax experts at H&R Block India ensure your business tax filing and GST Compliance are done correctly and promptly and keep the money you earn in your pocket, instead of using it to pay penalties.


  • Smart and Hassle-free tax filing experience withdedicated tax expert
  • 100% Secure Online Tax Vault to store all your documents
  • Year-round post filing support
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Chetan Chandak (B.Com, LLB)
Chetan Chandak (B.Com, LLB)
Chetan is the Head of Tax Research at H&R Block (India) with an experience of more than a decade in tax advising. He is also a regular contributor for some of the leading news publications in India such as Economic Times, Financial Express and Money Control. Professionally, Chetan is fascinated by international taxation and expat-related tax research.