GSTR-3A Notices to Cancelled Composition Taxpayers: What You Need to Know
On 20 July 2025, the GSTN issued an advisory clarifying an error in GSTR-3A notices sent to cancelled composition taxpayers. If you’re one of the affected businesses, here’s what this means—and what action you should (or shouldn’t) take.
What is GSTR-4 and Why Are GSTR-3A Notices Sent?
- GSTR-4 is the annual return for composition taxpayers, applicable under Section 39(2) of the CGST Act, 2017.
What Went Wrong?
The system mistakenly issued GSTR-3A notices to:
- Taxpayers who cancelled their GST registration, and
- Composition dealers who had already filed GSTR-4 for prior years.
This issue affects compliance history before FY 2024–25.
GSTN Advisory Highlights (Dated 20.07.2025)
The GSTN technical team is already working on a fix.
No action is required if:
- GSTR-4 has already been filed, or
- Registration was cancelled.
📌 Official Source: GSTN Advisory, dated July 20, 2025, accessible via www.gst.gov.in
What Should You Do If You Received a GSTR-3A Notice?
If you’re a cancelled composition taxpayer and received such a notice:
Check if your GSTR-4 was filed for the relevant period.
Check your registration cancellation status on the GST portal.
If either is true, ignore the notice as per the GSTN clarification.
If unsure, download your return filing history or take help from a tax professional.
Expert View: Why This Matters
“This is a rare official admission of a technical lapse in India’s GST compliance system. Given that the GSTN processes over 1.4 crore returns monthly (source: GSTN, 2023), such glitches can shake taxpayer confidence. It’s a good sign that GSTN is proactively acknowledging and addressing it.”
– Efiletax GST Expert Panel
Legal Basis Behind the Notice
| Legal Provision | Details |
|---|---|
| Section 39(2), CGST Act | Requires composition taxpayers to file annual returns (GSTR-4). |
| Rule 68, CGST Rules | Allows issuance of notice (GSTR-3A) for non-filing of returns. |
| GSTR-4 Filing Timeline | Annually by 30th April of following FY. |
| Composition Scheme Limit | Up to ₹1.5 crore turnover (as per CGST Amendment Act, 2018). |
Key Takeaways for Composition Dealers
- Don’t respond to the notice unless your return is genuinely pending.
- Keep a copy of filed GSTR-4 and cancellation order for records.
- Stay updated with GSTN advisories to avoid confusion during system errors.
Why Do Such Errors Happen?
A 2022 PwC report on GST automation flagged India’s GSTN system for:
- Poor error-handling protocols
- Delayed system updates
- Inconsistent sync between portal and backend data
This incident reinforces that human review is still essential, despite automated compliance systems.
Summary
GSTN admitted a system glitch that wrongly sent GSTR-3A notices to cancelled composition taxpayers for non-filing of GSTR-4. If you’ve filed GSTR-4 or cancelled your registration, you can safely ignore the notice.
FAQs
Q1. What is GSTR-3A?
It’s a notice for non-filing of GST returns as per Rule 68 of CGST Rules.
Q2. Can a cancelled taxpayer receive notices?
Usually no, but due to a system glitch, some cancelled taxpayers wrongly received GSTR-3A.
Q3. Do I need to respond to the notice?
Only if GSTR-4 is genuinely pending. Otherwise, ignore as per the GSTN advisory.
Q4. Where can I check GSTR-4 filing status?
Login to gst.gov.in, go to Services > Returns > View Filed Returns.
Final Word: Stay Compliant, Stay Calm
Errors can happen—even in automated systems. But clarity from GSTN helps businesses move forward without panic. If you’re ever in doubt, consult a trusted tax advisor or file your compliance with expert help from Efiletax.