Not filing GST returns for 6 years results in severe penalties, including a 18% annual interest on outstanding tax, heavy late fees, and potential best-judgment assessment under Section 62, where the tax officer determines liability. Furthermore, GSTN restricts filing returns older than three years, making compliance for a 6-year backlog difficult without special permission, alongside automatic registration cancellation and loss of Input Tax Credit (ITC).
Therefore, upon non –filing of GST returns or missing out the GST due dates, the GST law prescribes a general penalty. The maximum penalty that may be imposed is Rs. 5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty.
Penalties and Interest for Late Filing
Under Gst law, late Fees for Delay in filing Gst return 6 is ₹50 per Day for Each registered ISD [(₹25 CGST + ₹25 SGST]) Max limit of late fees of Gst return 6 is 0.25% of turn over.
Once four years have passed, neither party can typically reopen GST matters related to that period, except in the case of fraud or evasion. This creates a level of certainty that benefits everyone involved in the tax system.
The 'five year rule' states that residential premises are not considered to be 'new' if they have been rented out as residential premises for five or more years since they first became residential premises, or were last built or substantially renovated.
Applicability of the Three-Year Rule
As per the advisory, no GST return can be filed after three years from its original due date.
If you have not filed taxes for five consecutive years, the IRS may impose penalties, including failure-to-file and failure-to-pay penalties. Failure-to-file penalties usually amount to 5% of the unpaid tax for each month the return is late, up to a maximum of 25%.
No, you cannot file ITR for the last 10 years now. The maximum deadline to file an updated return is 48 months (4 years) from the end of the relevant assessment year. No, Rebate u/s 87A is not applicable for updated returns.
The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return.
When can the GSTIN get suspended? A taxpayer's GST registration or GSTIN can be suspended when they fail to file their GST returns for six consecutive months as monthly filers and for two consecutive quarters as quarterly filers.
For GST, the CRA filing and payment deadline is 3 months after your fiscal year end. For GST filed and paid annually, the CRA payment deadline is April 30 and the filing deadline is June 15. For GST filed and paid monthly and quarterly, the CRA filing and payment deadline is one month after the reporting period.
Legal Waivers/Reductions: Sections 73 and 74 of the CGST Act give discretionary powers to the authorities to waive penalty in case the tax payable is paid before assessment, or the default was not intentional and due to real causes.
Late submission penalty. A late submission penalty of $200 is imposed immediately when the GST return is not filed by the due date. A further penalty of $200 is imposed for every completed month that the GST F5/F8 return remains outstanding. The maximum penalty amount for each outstanding F5/F8 return is $10,000.
4-year credit time limit
If you account for GST on a cash basis, the earliest tax period in which you could claim a GST credit for a purchase is the tax period in which you make the payment. If you make the payment over multiple tax periods, the 4-year credit time limit applies separately to each part of the payment.
However, while the IRS can go back to any unfiled tax return, they generally don't try to enforce filing requirements for returns older than six years. The only exceptions might be if they: Find signs of fraudulent or illegal behavior. Need the information to inform returns for later tax years.
Yes, but only in specific situations, and most often, only part of the tax debt gets forgiven. This guide will provide an overview of the most popular IRS tax forgiveness programs.
You cannot go any number of years without filing taxes if you meet the IRS filing requirements. Unfiled tax returns stay open indefinitely, and the IRS can take action at any time—whether the return is three, five, or ten years old.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.
– Time limit to issue notice: 3 years from the due date of filing annual return for the relevant year. – Time limit to pass the order: 3 years from the due date of annual return. Example: For FY 2021–22, the time limit to issue notice is 31st December 2025 (assuming annual return due date is 31st December 2022).
Backdating your GST registration
Backdating a GST registration is limited to 4 years. This means, unless there is fraud or evasion: we can't backdate your GST registration by more than 4 years. you are not required to be registered before that date.
GSTN has recently issued a follow-up advisory on 9 September 2025, reiterating that returns older than three years from their due date will be permanently barred from filing starting 1 October 2025 .