This circular provides a Standard Operating Procedure (SOP to ensure uniform action across field formations in cases where registered persons fail to furnish returns under sections 39, 44 or 45 of the CGST Act.

It clarifies that when a registered person does not file the prescribed return by the due date, a notice in FORM GSTR-3A must be issued under section 46 read with rule 68, requiring filing of the return within 15 days. The circular emphasizes that no separate notice is required for best judgment assessment under section 62, as this possibility is already mentioned in FORM GSTR-3A. If the return is not filed within the stipulated 15 days, the proper officer may directly proceed to issue a best judgment assessment order in FORM GST ASMT-13, without any further communication.

To promote compliance and consistency, the circular prescribes a step-by-step process, including system-generated reminders before and after the due date, electronic issuance of FORM GSTR-3A, and assessment based on available data such as GSTR-1, GSTR-2A, e-way bills, inspection reports, or other relevant information. A summary of the assessment is required to be uploaded in FORM GST DRC-07.

It is further clarified that if the defaulter files a valid return within 30 days of service of the assessment order, the assessment shall be deemed to be withdrawn. If the return is still not filed, recovery proceedings may be initiated. The circular also allows provisional attachment in deserving cases and directs initiation of cancellation proceedings where non-filing continues for the specified period.