FAQs on Suo Moto Cancellation of GST Registration
Hemlata Khandelwal / 2021-03-31 04:59:21

  1. Under what circumstances can tax officers do the cancellation of GST registration?
The cancellation of GST registration for various situations mentioned in the provisions of the GST Act may be initiated by the officer: -
  1. Apart from the composition taxpayer, no taxpayer has filed returns for a continuous period of six months.
  2. Rules that have made for the supply of any goods and services without issuing any invoice, in violation of the provisions of the Act or to evade tax.
  3. Issues any invoice or bill without supply of goods and services due to violation of the provisions of this Act, or rules made for wrongful availing or use of input(I)tax(T)credit(C) or refund of tax.
  4. Collects any amount as representing tax, but fails to pay the Central / State Government account for three months from the date on which such payment is due.
  5. Fails to pay any tax, interest, or penalty in the Central / State Government account from the date on which such payment is made.
  6. As per the GST Law provisions, the person is not liable to deduct tax.
  7. As per the provisions of GST law, tax is not liable to collect tax at the source
  8. The person is no longer required to be registered under the provisions of GST law
  9. The GST practitioner is found guilty of misconduct concerning any proceeding under the GST law.
  10. Winding-up
  11. Changes in the constitution to change the PAN
  12. Is not liable to pay tax
  13. Transfer of business due to amalgamation, demerger/merger, sale, lease or otherwise being settled.
  14. In case of sole proprietor death.
  15. The structure has not filed returns for three consecutive tax periods,
  16. GST online Registration is obtained by fraud, wilful misstatement or suppression of facts. etc.
  1. Will the GST payer be informed before the cancellation of GST  registration?
Yes, the Registration under GST cannot be canceled without a show-cause-notice being given to the taxpayer and a reasonable opportunity of being heard by the tax officer. Thus, in case of cancellation of registration, the tax office will be issued a show-cause notice by the tax officer / proper officer, and the taxpayer will be allowed to file an explanation in the stipulated time frame.
  1. What is the condition for the cancellation of Suo moto registration?
There should be a valid reason for initiating proceedings for cancellation of the Suo moto specified under Section 29 (2) of the CGST / CST Act.
  1.      What is the period for which the GST payer is required to file a response to the show-cause notice regarding cancellation of registration?
You need to reply within the stipulated time frame of 7 working days for more than registration using the Services tab and for application for registration. If no reply is given within the stipulated 7 working days, the tax officer can proceed with the cancellation of registration.
  1. What will happen once the show cause notice’s dropped?
In case the tax officer is satisfied with the response received from the holder of GST Registration Online, the proceedings can be canceled on the issue of a show-cause notice.
    • The primary authorized signatory will be notified by SMS and email about leaving the SCN.
    • Issuance of orders to leave SCN will also be communicated to the primary authorized signatory by email and SMS.
    • The order will be made available for viewing, printing, and downloading on the taxpayer's dashboard.
    • The status of GSTIN will change from "Proceedings for Cancellation Initiative" to "Active".
  1. What will be the effective date of cancellation of GST registration?
The effective date of cancellation of the GST online registration will be the date mentioned in the cancellation order.

Leave your comment