GST return filing is an important aspect of every business setup in India. Every business has to file its GST returns in time to avoid penalties. Filing the GST on time helps maintain a track record of the progress in the economy.

The rise in COVID cases had made the government provide relaxation to the people in filing GST online for their taxes to avoid any more problems. It helped people file the taxes with time in their hands. With things getting back to Normal the rules are being brought back.

Who are the Defaulters on GST Filing?

GST has to be filed on time so that one does not face the consequences of not paying taxes on time. There are often people who delay the payment of the taxes and as a result, there's a discrepancy in the tax collection. It causes disruption in the flow of tracking the taxation in the nation.

Defaulters are individuals who avoid taxation or conduct activities that go against the policies of the Income Tax Department. They do not abide by the rules of conduct and as a result cause disruption in the process of tax collection.

What happens to Defaulters of GST Filing?

Individuals who are defaulters of GST Filing are often punished by the government to bring compliance in following the rules. These are the people who are not allowed to file for GST e-way bills due to their negligence in filing for the GST on time.

During the Pandemic the government had provided relief to the people to file their taxes beyond the last date. The government had brought a provision where the late fees were canceled during the pandemic.

With things getting back to normal the government has started the policy of not providing GST e-way bills to businesses who do not pay their taxes on time. Earlier it was for not paying for two months that the e-way bill was blocked. But now the government provides a month-long time to file the GST after which the e-ways bills will be blocked again.

Conclusion

The reason for the government to implement such policies is to curb the practices of evading taxes. Vendors who do not file for GST returns have been a source of problems for businesses. Because of this, the sourcing of raw materials from the businesses becomes difficult.

This also makes the buyer face difficulties in claiming the credit for taxes paid when they buy the raw materials. Defaulters caught in the process will face difficulties and as a result, will avoid evasion of taxes the next time.