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.
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:
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.
Before you are charged with penalties/prosecution, the ITD will give you the chance to rectify the situation by issuing you notices, such as:
|Type of Business||Due Dates|
|Working Partner/LLP||July 31st and September 30th(audit cases)|
|Partnership/LLP||July 31st and September 30th (audit cases)|
|LLP||July 31st and September 30th(audit cases)|
|Trust||July 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.