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Non-Furnishing of GSTR-3B is Grounds for Registration Cancellation for Six Months

The Indian Government has modified the GST Rules, 2022, to notify, that the non-filing of monthly or quarterly GST returns in form GSTR 3B, for a continuous period of 6 months, or for two consecutive tax periods, will, from now on, result in the cancellation of GST registration.
Non-Furnishing Of Gstr-3B Is Grounds For Registration Cancellation For Six Months
GSTR 3B is a self declared GST return that is filed by every GST dealer, along with the returns filed in GSTR 1 and GSTR 2 forms. GSTR 3B contains a detailed summary of the tax liabilities of the GST dealer. If GSTR 3B is being filed monthly, the due date for filing the returns of the current month will extend upto the next month. For instance, the returns for the month of September, upto September 30th, can be filed by October 30th of the same year.

Modification to Rule 21 of the GST Act

The notification was affected by adding two more provisions in Rule 21 of the GST Rules, 2022.
The first rule read that, if an entity required to file monthly GST returns under subsection 1 of section 39 of the GST Act, has not filed returns for 6 continuous months, or if an entity required to file quarterly GST returns under the same rule, has not filed it for 2 consecutive tax periods, will be compelled to get his GST registration canceled by the concerned authority.

Amendment to Rule 37

ITC on inward supply of goods and services, not paid the amount inclusive of taxes, to the supplier within the prescribed time limit, as mentioned in section 16 of the GST Act, will have to pay an amount equal to the Input tax credit, while filing returns in GSTR 3B, after 180 days from the date of issue of sales invoice.


The Indian Government has amended the GST Rules, 2022, to provide that failure to file monthly or quarterly GST reports in form GSTR 3B for a continuous period of 6 months, or for two consecutive tax periods, would henceforth result in GST registration cancellation. GSTR3B is a self-declared GST return that is filed by every GST dealer, along with GSTR 1 and GSTR 2 reports.

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