GST: What happens if person files return but does not make payment of taxes?

In Case One taxable person files a return under the GST Act but does not make payment of taxes what happen?

I understand that the applicability of GST on the reverse charge basis has been suspended. In this scenario, I want to know whether the information is applicable to the import of services, for which we are paying GST on the basis of reverse charge?

In the case of import of services, the integrated tax is payable under Section 5(3) of the IGST Act, 2017 (Integrated Goods and Services Tax Act). The liability to pay GST under the reverse charge has been postponed in respect to the transactions under IGST Act Section 5 (4), which are not registered under the GST Act, accordingly, import of services shall continue to be liable to Integrated Tax under reverse charge mechanism.

Who can opt for the composition scheme? Is liability to pay taxes under RCM(reverse charge mechanism) covered under the composite scheme?

The GST law provides an option for the supplier of goods to choose for payment of GST under the Composition scheme of goods, in which annual total turnover cannot exceed 10 million. Any person engaged in the supply of food/drinks (other than alcohol) has been given a similar option. However, this option is not available for other service providers. This option is also not available if suppliers are engaged in interstate supply.

GST payable under reverse charge mechanism is not covered under the composition scheme.If a person registered under the composition scheme purchases any goods and services on which GST is payable under RCM, then the person will have to pay at the rate applicable on GST and this structure will not be based on the rates prescribed under this scheme.

What happens if t the e taxable person files a return under the GST Act but does not pay tax?

Under GST law, the filing of return without payment of taxes will not be considered as a valid return. Section 2 (117) defines a valid return. This means, a return submitted under sub-section (1) of section 39 which is filled up by self-assessment. This is only a valid return which will be used to allow the recipient to input tax credit (ITC). In other words, unless the supplier has made complete self-assessment and has filed his return and the recipient has filed his return, then the recipient’s ITC will not be confirmed.

Before July 1, 2017, what will be the GST implication on the goods returned under the GST regime?