Suo moto cancellation of GST registration

Suo Moto Cancellation of GST Registration means cancellation of registration by GST Officer on its own. There must be a valid reason for initiation of proceeding for Suo moto cancellation as specified under Section 29(2) of the CGST/SGST Act.

Once GST registration has been received the same could not be revoked unless an assessee applied voluntarily against it or GST heads cancelled the same for some reason.

If the GST registration would get cancelled by the GST heads the same would get specified on the GST portal as Suo Moto cancelled. One is not able to submit an application for cancellation of registration if the Tax Officer has already started Suo Moto cancellation of a specific GST registration.

Read more at: ICAI’s suo motu power to initiate disciplinary proceedings under S 21 of the Chartered Accountants Act, 1949

Application for Revocation of Suo Moto Cancellation :

1. Time limit for Revocation :

Any registered taxable person can apply for revocation of cancellation of GST registration within a period of 30 days from the date of service of order of cancellation of GST registration. It must be noted that the application for revocation can be done only during the circumstances when the registration has been cancelled by the proper officer on his own motion. Hence, revocation cannot be used when GST registration was cancelled voluntarily by a taxpayer.

2. Application for Revocation :

Application in FORM GST REG-21 needs to be filed by the registered person, for revocation of GST registration, either directly or through a facilitation centre notified by the Commissioner.

3. Online Revocation procedure :

Following are the steps which a registered person needs to be followed, who wants to apply for revocation online through the GST Portal:

(A) Access the GST Portal at http://www.gst.gov.in
(B) In order to enter into the account, enter the username and appropriate password.
(C) In the GST Dashboard, select services, under services select registration and further under registration select application for revocation of cancelled registration option.
(D) Select the option of applying for revocation of cancelled registration. In the select box, enter the reason for revocation of GST registration cancellation. Further, you need to choose appropriate file to be attached for any supporting documents and you need to select verification checkbox and select name of authorized signatory and fill up the place filed box.
(E) The final step would be to select SUBMIT WITH DSC OR SUBMIT WITH EVC box.

4. Processing of Application :

When the proper officer is satisfied that the reason being provided for revocation of cancellation of registration is appropriate, then, the officer will revoke the cancellation of registration.

The time period of revocation, by the proper officer, is 30 days from the date of application. The proper officer is required to pass an order revoking the cancellation of registration in FORM GST REG-22.

5. Rejection of Application :

If a GST officer is not satisfied with the revocation application, the officer would issue a notice in FORM GST REG-23. On receipt of the notice, the applicant is required to furnish a suitable reply in FORM GST REG-24 within a period of 7 working days from the date of service of the notice. On receipt of a suitable reply from the applicant, the officer is required to pass a suitable order in FORM GST REG-05 within a period of 30 days from the date of receipt of a reply from the applicant.

6. Ineligible Applicants :

UIN Holders (i.e. UN Bodies, Embassies and Other Notified Persons), GST Practitioner or in case the registration is cancelled on the request of the taxpayer or legal heir of the taxpayer, cannot apply for revocation of cancelled registration.

Latest Update

05th October 2022

  • An appeal against the order cancelling GST registration has been reinstated by the Rajasthan High Court based on the assessee’s failure to submit hard copies of the appeal within the allocated time.

Suo moto cancellation of GST registration shows that the assessee is not a GST-registered individual and his GSTIN would indeed become inactive.

As per that the assessee could not furnish the taxes, claim for the ITC, and indeed acknowledge as doing the business without the GSTIN, which draws much more penalties.

Moreover, the GST department that issues the notices through the ASMT-10 to the buyer from the Suo-moto cancelled enrollment towards reversing the Input tax credit claimed on the basis of non-filing of GSTR-3B returns.

Reasons for Suo Moto Cancellation of GST Registration via Authorities

Suo moto cancellation of registration might be executed via tax officer for distinct circumstances as specified in the GST law and is mentioned below:

  • Any assessee excluding the composition assessee does not furnish the returns for a straight duration of 6 months.
  • Supplies any goods or services, no issuance of notice for revoking the provisions of the act made inside it with the purpose to evade the tax.
  • Issuing any invoice or bill with no supply of goods or services in breach of the provisions of the Act, or the regulations made under that renders an illegal claim or use of input tax credit or tax refund.
  • Collects any amount as designating the tax while looses to pay that to the account of the Central or State Government above the duration of 3 months from the date on which the same payment is left.
  • Looses to file any tax amount, interest, or penalty to the account of the central or state government above the duration of 3 months from the date on which these types of payments become due.
  • An individual would be no more responsible to collect tax at the source beneath the GST law.
  • The practitioner of GST would be found guilty of the misconduct, linking within any proceeding under the GST Law.
  • Discontinuation/Closure of Business
  • An individual would be no more responsible to deduct tax at source under the GST law.
  • Quit being responsible for filing the taxes.
  • Business transfer on the basis of amalgamation, merger/demerger, sale, lease or otherwise disposed of, and others.
  • Revision in Constitution leading to change in PAN
  • Registration would be received through fraud mode, willful misstatement, or suppression of facts and others.
  • Death of Sole Proprietor
  • The composition individual did not file the returns for 3 successive tax periods.

Read more at: Revocation application for cancellation of registration timeline

Removal Order for Suo Moto Cancellation of GST Registration

There should be a proper reason for the start of rolling for Suo moto cancellation as mentioned under Section 29(2) of the CGST/SGST Act and Goods and Service Tax registration could not be cancelled without issuing a show cause notice to the assessee and the proper chance of being heard via tax officer.

Hence a show cause notice would be given by the tax officer to the assessee in the case of Suo moto cancellation of enrollment and the assessee will be provided with an opportunity to furnish the clarifications in the specified duration.

To answer the show cause notice furnished to the assessee would be needed to furnish an answer in the mentioned time duration of seven working days to furnish an answer to the show cause notice (SCN) through the services > Registration > Application for Filing Clarifications link. When there is no answer provided within 7 working days then the tax officer could move with the revocation of registration.

If the proper officer is satisfied with the reply obtained via the assessee on the show cause notice furnished, proceedings would get withdrawn and the assessee would carry on with the existing GSTIN advantages.

Order to drop SCN would get intimated to the main Authorized Signatory via SMS and email indeed the order copy would be incurred available on the assessee’s dashboard to view, print, and download. As per that, the status of GSTIN would get amended from “Suspended” to “Active”.

Cancellation of GST Registration via Officer

If the proper officer shall not get satisfied with the submission then he would give the revocation order, for the date effective. The revocation of the enrollment beneath the CGST Act or SGST/UTGST or IGST Act would be deemed to be a revocation of the registration under the SGST Act / UTGST Act or CGST Act correspondingly and vice versa.

The assessee can see that via Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice for the Suo Moto revocation of Registration.

Once the registration would get revoked by the tax authority the assessee would be communicated through SMS and email. Cancellation of GST Registration order shall be issued and intimated to the Primary Authorized Signatory through Email and SMS. The Order would be available on the taxpayer’s dashboard to view, print and download.

The status of the GSTIN/UIN/GSTP ID through ‘Proceeding for Revocation started’ to ‘Inactive’ and would get intimated to the other related Tax Authority.

The assessee shall not be permitted to furnish the return or upload the invoices for the duration post to the cancellation date specified in the order of cancellation. Indeed GSTP would unable to perform the GSTP operation for any assessee for the duration post to the cancellation date specified in the order of cancellation.

The assessee would not be enabled to revise the information of the registration after providing the cancellation order. But the email address and mobile number could get updated till refunds get cleared. Filing the application utility for the revocation (if applicable) will be open for the Cancelled Registration.

Steps to Activate Suo Moto GST Registration

It is essential to learn that if they would get cancelled, any liabilities before the date of Suo moto cancellation would need to be paid via assessee, whatever the fact when the finding of the liabilities would be completed.

An assessee would be mandated to pay any liability concerned with that specific GSTIN. The same could be retrieved later on even after the GSTIN cancellation.

The assessee could log in to the GST portal later Suo moto cancellation of the registration and could submit the return of the former duration (for the duration prior to the date of the cancellation specified in the cancellation order) later Suo moto cancellation of the registration.

But you would not be permitted to furnish the return or upload the invoices for the duration post-cancellation date as specified in the order of cancellation. Indeed, GSTP would not be enabled to take the GSTP processes on your basis for the time post the cancellation date specified in the order of cancellation.

Procedure to Activate Cancelled GST Registration via Suo Moto

  • Proceed to the GST Portal.
  • Insert the GST login credentials.
  • Proceed to the Dashboard and choose the services. Under the services, section tap on registration, and under the registration section, choose the application for revocation of cancelled registration option.
  • Insert the revocation reasons and attach the required documents. (assessee needed to finish the GST Return Filing process, if the GST Registration was cancelled because of non-compliance)
  • Choose the authorized signatory and “Submit” the application.
  • The order of withdrawing the cancellation shall get processed by the officer if he would get satisfied with the justification of the assessee.
  • The corresponding GST officer would be performing the same within 30 days from the application date for revoking the registration. The competent officer should sign an order in FORM GST REG-22 revoking the GST registration cancellation.
  • Once the same has been performed the assessee would be regarded as an active assessee and all the accesses furnished to the active taxpayers on GST Portal will be enabled instantly.
  • As per that the registration certificate and profile of the taxpayer would get updated.

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