Conditions to be Satisfied for Suo Moto Cancellation of GST Registration
Suo moto cancellation by the tax officer can be initiated if any one of the following conditions is satisfied:
The taxpayer has violated the provisions of the CGST Act or the rules made thereunder.
The taxpayer has registered their business through fraud, suppression or misrepresentation of facts.
The taxpayer has taken voluntary registration under the GST law and not commenced business within six months from the date of registration.
The taxpayer has failed to apply for GST enrolment within 90 days from the appointed date or any such extended date as may be prescribed.
The taxpayer does not conduct any business from the declared place of business.
The taxpayer has failed to file returns for six months consecutively, or for two quarters in the case of quarterly filers. The criteria for filing returns is three months in the case of a composition taxpayer.
The taxpayer has indulged in supplying goods or services without the issue of an invoice in violation of the provisions of the CGST Act to evade taxes.
It is observed that the taxpayer has issued an invoice without a supply of goods or services, thereby again violating the provisions of the Act to evade input tax credit or get a refund of tax.
Failure to deposit taxes collected with the treasury within 90 days.
Failure on the taxpayer’s part to pay taxes, interest or penalty to the government within 90 days.
Display of misconduct during any proceedings under the GST Act.
It is observed that a person is not liable or has ceased to become liable for deduction or collection of taxes under GST laws.
The taxpayer is no longer required to be registered under provisions of GST Law.
If the business constitution is a sole proprietorship, upon the death of the sole proprietor.
In the event of amalgamation, transfer, merger, demerger and the like of a business.
If there is a change in the constitution that leads to a change in PAN.
In the event of discontinuation of closure of business.
In the event the taxpayer violates the provisions of Section 171 of the CGST Act or the rules made thereunder i.e. violate the anti-profiteering measures in place.
In the event the taxpayer violates the provision of Rule 10A of the CGST Rules i.e. if the taxpayer furnishes incorrect or false bank account details.
In the event the taxpayer avails input tax credit in violation of the provisions of Section 16 of the CGST Act or the rules made thereunder.
In the event the taxpayer furnishes details of outward supplies in their GSTR-1 which is higher than the details of outward supplies reported in their GSTR-3B.
If the taxpayer violates the provision of Rule 86B of the CGST Rules i.e. restriction of input tax credit utilisation from the electronic credit ledger
If the taxpayer violates the provisions of the third or fourth proviso to Rule 23 (1) of the CGST Rules i.e. the rules in regard to revocation of cancellation of GST registration.
Procedure to be Adhered to for Suo Moto Cancellation of GST Registration by Tax Officer. As per the GST laws, the tax officer needs to issue show cause notice to taxable person and also specify the reasons for intention of tax officer for suo moto cancellation of registration of taxable person.
The taxable person has to reply the show cause notice issued by tax officer within 7 working days. The reply to show cause notice issued by tax officer can be provided through Services > Registration> Application for Filing Clarifications basis nature of show cause notice raised by tax officer in suo moto cancellation of registration case.
Step to reply show cause notice issued for suo moto cancellation of GST registration is same as replied for show cause notice issued for reasons to cancel GST registration on application of taxpayer. Taxpayer can reply for show cause notice for suo moto cancellation of GST registration by Services > Registration> Application for Filing Clarifications.
Tax Officer shall proceed as per information received and show cause notice issued to registered person and his reply thereto either drop the proceedings for cancellation of registration and intimate the registered person through SMS or email or cancel the registration in terms of section 30 of CGST/SGST Act, 2017 as the case may be.
If no reply is received from the Taxpayer within seven working days from the date of issue of show cause notice or the Tax Officer is not satisfied with the reply of Taxpayer, then Tax Officer can cancel the GST Registration of Taxpayer.
Steps To Reply Show Cause Notice For Cancel GST Registration Suo Moto ! A show cause notice for suo moto cancellation of GST registration has been generated. Taxpayer can reply to the show cause notice by clicking on Services > Registration > Application for Filing Clarifications. Application for Filing Clarifications will be displayed for filing clarification. The reason for cancellation of registration as provided by the tax officer in the show cause notice will be displayed in the Application for Filing Clarifications and taxpayer can provide his response as required.
Taxpayer can add reply for all the reasons mentioned by tax officer in show cause notice for cancellation of GST registration.
Step 2 – Click on Service > Registration > Application for Revocation of Canceled Registration.
Step 3 – Fill the application for cancellation of registration and give reasons for revocation along with supporting document(s).
Select Authorized Signatory.
On successful submission of the application, a message will be displayed as “Application successfully submitted”.
On successful submission of the application a message will be received saying that application has been successfully submitted.
The GST officer shall withdraw the cancellation order, if he is satisfied with the justifications filed by the assessee, within a period of thirty days from the date of receipt of the application for revocation of cancellation of registration. The GST officer shall issue an order in FORM GST REG-22 for revocation of cancellation of registration of the taxable person. On revocation of cancellation of registration, the taxable person shall stand activated on GST portal. His profile and registration certificate shall stand updated on GST portal. All the accesses available to active taxpayers would get enabled on GST portal.
Effect of Suo Moto GST Registration Cancellation
Once GST registration is cancelled by Tax Authorities then intimation of such cancellation shall be sent to Taxpayer through SMS and Email.
A Cancellation Order of Registration shall be generated and sent through email/SMS to the Primary Authorized Signatory of taxpayer.
The order for cancellation of registration shall be available on Taxpayer’s dashboard to view, print and download.
The status of GSTIN/UIN/GSTP ID will change from ‘Proceeding for Cancellation initiated’ to ‘Inactive’ and intimation of the same shall be provided to the concerned tax authorities.
After GST registration has been cancelled by tax authorities, a taxpayer will not be able to file returns or upload invoices for the period after the date of cancellation specified in the cancellation order. Additionally, after GST registration has been cancelled by tax authorities, a taxpayer will not be able to carry out GSTP functions for any taxpayer for the period after the date of cancellation specified in the cancellation order.
No amendments to registration details shall be allowed except for updating email and mobile number of taxpayer until all dues/ refund if any are paid by taxpayer.
Option to apply for Revocation of Cancellation of GST registration (if applicable) shall be available for cancelled GST registration.
gst registration certificate cancellation Cancellation of GST registration simply means that the taxpayer will not be a GST registered person anymore. He will not have to pay or collect GST or claim the input tax credit and accordingly, need not file GST returns.
Consequences of GST registration cancellation
The taxpayer will not pay GST anymore
For certain businesses, registration under GST is mandatory. If the GST registration is cancelled and business is still continued, it will mean an offence under GST and heavy penalties will apply.
Who can cancel the GST registration?
The below infographic guides you on who can call for the cancellation of GST registration-
Cancellation of GSTIN for Migrated Taxpayers
Every person who was registered under erstwhile indirect tax laws had to mandatorily migrate to GST. Many such persons may have not been liable to be registered under GST. For example, the threshold under VAT in most states was Rs.5 lakhs and Service Tax was Rs.10 lakh, whereas it is Rs.20 lakh* under GST. However, they had to make sure you are not making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.
*Rs.40 lakh in case of a supply of only goods in some states or Rs.10 lakh in certain special category states/Union Territories. Such a taxpayer had to submit an application electronically in the form GST REG-29 at the GST portal.
The proper officer shall, after conducting an enquiry as required would cancel the registration.
Below are the steps for cancelling GSTIN by the migrated taxpayers on the GST Portal- Step 1- Log in to the GST Portal and click the Cancellation of Provisional Registration
Step 2-
The Cancellation page opens.
Your GSTIN and name of business will show automatically.
You are required to give a reason for cancellation.
You will be asked if you have issued any tax invoices during the month.
Simply fill up the details of authorized signatories and their place. Finally, sign off with EVC if you are a proprietor or a partnership firm. LLPs & Companies must mandatorily sign with DSC. Note: Taxpayers who have not issued tax invoices can avail above service. If the taxpayer has issued any tax invoice then FORM GST REG-16 needs to be filed. Refer below.
Cancellation by taxpayer (Other than Migrated)
Why does a taxpayer wish to cancel his registration?
The business has been discontinued
The business has been transferred fully, amalgamated, demerged or otherwise disposed of —The transferee (or the new company from amalgamation/ demerger) has to get registered. The transferor will cancel its registration if it ceases to exist.
There is a change in the constitution of the business
From 1st January 2022, CBIC made the aadhaar authentication mandatory to apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21.
(For example- A private limited company has changed to a public limited company)
Forms for cancellation
All those who cannot follow the above method must file an application for cancellation in form GST REG 16. The legal heirs of the deceased taxpayer will follow the same procedure as below.
Application for cancellation has to be made in form GST REG 16.
The following details must be included in form GST REG 16-
Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation of registration is applied
Liability thereon
Details of the payment
The proper officer has to issue an order for cancellation in the form GST REG-19 within 30 days from the date of application. The cancellation will be effective from a date determined by the officer and he will notify the taxable person
Cancellation by tax officer
Why will the officer cancel registration?
The registration can be cancelled if the taxpayer-
(a) Does not conduct any business from the declared place of business OR
(b) Issues invoice or bill without supply of goods/services (i.e., in violation of the provisions) OR
(c) Violates the anti-profiteering provisions (for example, not passing on the benefit of ITC to customers) OR
With effect from 1st January 2021-
(d) Utilisation of ITC from electronic credit ledger to discharge more than 99% of the tax liability for specified taxpayers violating Rule 86B – with the total taxable value of supplies exceeding Rs.50 lakh in the month, with some exceptions. OR
(e) A taxpayer who cannot file GSTR-1 due to GSTR-3B not being filed for more than two consecutive months (one quarter for those who opt into the QRMP scheme) OR
(f) Avails input tax credit in violation of the provisions of section 16 of the Act or the rules.
Procedure
If the proper officer has reasons to cancel the registration of a person then he will send a show-cause notice to such person in form GST REG-17.
The person must reply in form REG–18 within 7 days from the date of service of notice why his registration should not be cancelled.
If the reply is found to be satisfactory, the proper officer will drop the proceedings and pass an order in the form GST REG–20.
If the registration is liable to be cancelled, the proper officer will issue an order in the form GST REG-19. The order will be sent within 30 days from the date of reply to the show cause.
Revocation of cancellation of registration
What is revocation of cancellation?
Revocation means the official cancellation of a decision or promise. Revocation of cancellation of registration means that the decision to cancel the registration has been reversed and the registration is still valid.
When is revocation of cancellation applicable?
This is applicable only when the tax officer has cancelled the registration of a taxable person on his own motion. Such taxable person can apply to the officer for revocation of cancellation within thirty days from the date of the cancellation order.
Procedure
A registered person can submit an application for revocation of cancellation, in form GST REG-21, if his registration has been cancelled suo moto by the proper officer.
He must submit it within 30 days from the date of service of the cancellation order at the Common Portal.
If the proper officer is satisfied he can revoke the cancellation of registration by an order in form GST REG-22 within 30 days from the date of receipt of the application. Reasons for revocation of cancellation of registration must be recorded in writing.
The proper officer can reject the application for revocation by an order in form GST REG-05 and communicate the same to the applicant.
Before rejecting, the proper officer must issue a show-cause notice in form GST REG–23 for the applicant to show why the application should not be rejected. The applicant must reply in form GST REG-24 within 7 working days from the date of the service of notice.
The proper officer will take a decision within 30 days from the date of receipt of clarification from the applicant in form GST REG-24.
Note: Application for revocation cannot be filed if the registration has been cancelled because of the failure to file returns. Such returns must be furnished first along with payment of all dues amounts of tax, interest & penalty.
Can the business register for GST after cancellation?
Yes, there is no restriction to taking GST registration once it has been cancelled except where it was cancelled by the tax officer.
FAQs > Suo Moto Cancellation
1. Under which circumstances can a Tax Official initiate for cancellation of GST registration?
Suo Moto Cancellation of registration may be initiated by the Tax Official for various situations as mentioned in the provisions of GST law like: –
Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months
Supplies any goods and / or services without issue of any invoice, in violation of the provisions of the Act or rules made thereunder, with the intention to evade tax
Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax
Collects any amount as representing the tax but fails to pay the same to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
Fails to pay any amount of tax, interest or penalty to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
Person is no longer liable to deduct tax at source as per the provisions of GST Law
Person is no longer liable to collect tax at source as per the provisions of GST Law
Person no longer required to be registered under provisions of GST Law
GST Practitioner is found guilty of misconduct in connection with any proceeding under the GST Law.
Discontinuation/Closure of Business
Change in Constitution leading to change in PAN
Ceased to be liable to pay tax
Transfer of business on account of amalgamation, merger/demerger, sale, lease or otherwise disposed of etc.
Death of Sole Proprietor
Composition person has not furnished returns for three consecutive tax periods,
Registration has been obtained by means of fraud, willful misstatement or suppression of facts. Etc.
2. Will I be intimated before the Suo Moto Cancellation of Registration?
Yes. Registration cannot be cancelled without a Show Cause Notice being given to taxpayer and a reasonable opportunity of being heard by the Tax Official. Thus, in case of Suo Moto cancellation of registration, a Show Cause Notice shall be issued by the Tax Official/ Proper officer to the taxpayer and taxpayer would be given a chance to file clarifications in the stipulated time limit.
3. What is the precondition for Suo Moto Cancellation of Registration?
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.
4. What is the duration within which I need to file a response for Show Cause Notice regarding Suo Moto Cancellation of Registration?
You need to provide response within the prescribed time limit of 7 working days’ time to file reply to the Show Cause Notice (SCN) using the Services > Registration > Application for Filing Clarifications link. If no response is given within prescribed 7 working days, the Tax Official can proceed with Cancellation of registration.
5. What will happen once Show Cause Notice is Dropped?
In case the Tax Official is satisfied with the response received from the taxpayer, on the Show Cause Notice issued, the proceedings can be dropped.
Primary Authorized Signatory will be intimated about dropping of SCN by SMS & Email.
Issuance of Order for dropping of SCN will also be intimated to the Primary Authorized Signatory by Email and SMS.
Order will be made available on the taxpayer’s dashboard to view, print and download.
Status of GSTIN will change from “Suspended” to “Active”.
6. What shall be the effective date of cancellation of registration?
Effective date of cancellation will be the date as mentioned in the cancellation order.
7. Will the cancellation of registration means that I have no liabilities?
No, any liabilities prior to the date of suo moto cancellation will have to be paid by the taxpayer, irrespective of the fact that when determination of liabilities are done.
Any liability which is related to that particular GSTIN is required to be paid by the taxpayer. It can be recovered later on even after the cancellation of GSTIN.
8. Will the Suo moto Cancellation of registration be proceeded separately for each act?
Cancellation of registration under the CGST Act or SGST/UTGST or IGST Act shall be deemed to be a cancellation of registration under SGST Act / UTGST Act or CGST Act respectively and vice versa.
9. What will happen once Registration is cancelled?
a) Once registration is cancelled by the Tax Authority, the taxpayer will be intimated about the same via SMS and Email. Order for Cancellation of Registration will be issued and intimated to the Primary Authorized Signatory by Email and SMS.
b) Order will be made available on taxpayer’s dashboard to view, print and download.
c) Status of the GSTIN/UIN/GSTP ID from ‘Proceeding for Cancellation initiated’ to ‘Inactive’ and will be intimated to the other concerned Tax Authority.
d) Taxpayer would not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions for any Taxpayer for the period after the date of cancellation mentioned in the cancellation order.
e) Taxpayer will not be able to amend registration details after issuance of cancellation order. However, email address and mobile number can be updated till dues/ refund are cleared. The facility to file application for revocation (if applicable) will be open for the Cancelled Registration.
10. Will I be able to login after suo moto cancellation of registration?
Yes, you can login to the GST Portal after suo moto cancellation of registration.
11. Can I update my email and mobile after suo moto cancellation of registration?
You will not be able to amend registration after issuance of cancellation order.
However, email address and mobile number can be updated till dues/ refund are cleared.
12. Can I submit returns of the earlier period after suo moto cancellation of registration?
You can submit returns of the earlier period (i.e. for the period before date of cancellation mentioned in the cancellation order), after suo moto cancellation of registration. However, you will not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions on your behalf for the period after the date of cancellation mentioned in the cancellation order.
13. Where can I view the Show Cause Notice regarding Suo Moto Cancellation of Registration?
Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration.
14. How can I reply to the Show Cause Notice regarding Suo Moto Cancellation of Registration?
To reply to the Show Cause Notice related to Suo Moto Cancellation, Navigate to Services > Registration> Application for Filing Clarifications.
The application is displayed for filing clarification. The reason for cancellation provided by Tax Officer will be displayed in the form. You can enter your Response.
Note: Taxpayer is required to submit his/her response to each of the cancellation reasons invoked by the tax officer in the notice.
15. Where can I view the date for personal hearing regarding Suo Moto Cancellation of Registration?
Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration. Download the notice to view the personal hearing date.
17. Can I submit application for cancellation of registration, in case Tax Official has already initiated the suo-moto cancellation of Registration?
No, you cannot submit application for cancellation of registration, in case Tax Official has already initiated suo-moto cancellation of your Registration.
18. The status my GSTIN is showing as “Suspended” under My Profile. Why?
When a taxpayer files an application for cancellation of registration or Suo Moto cancellation has been initiated by the Tax Official, the status of the GSTIN is shown as “Suspended”. This will be changed to “Active” only when application for cancellation of registration is rejected by the Tax Official or Suo Moto cancellation proceeding is dropped, after hearing.
19. The status my GSTIN is showing as “Suspended” under My Profile. Can I perform any activity on the GST Portal?
When the status of your GSTIN is showing as “Suspended” status, you can perform certain activities on GST Portal like filing Appeal, making payment, filing for Refunds, reply to Assessment/Recovery/ Enforcement related orders/ notices, even make non-core amendment etc..
However, once GSTIN is suspended:
During the suspension status, taxpayer will be allowed to file return or upload invoices only for the period before the registration was suspended.
Taxpayer will not be able to file core amendment application till the time registration is suspended. However, email address and mobile number can be updated till dues/ refund are cleared.
20. What is the effective date of suspension?
When a taxpayer files an application for cancellation of registration: Date of Suspension will be the date on which Cancellation application was filed.
Suo Moto cancellation has been initiated by the Tax Official: Date of Suspension will be the date on which notice for Cancellation of registration (Form GST REG-17) is issued.
21. What will happen once the status is changed from “Suspended” to “Active”?
Once the status of GSTIN is changed from “Suspended” to “Active”, you will be again treated as an Active taxpayer and all the accesses given to the Active taxpayers on GST Portal will be enabled for you immediately.
23. What happens if I have filed all my due returns after SCN has been issued by the system for non-filing of Returns/Statements and my status becomes suspended?
Once all the due returns are filed, further proceedings will be auto dropped for cancellation of the GSTIN where SCN has been issued for non-filing of Returns/Statements by the system and the registration status would become active even if you have not responded to the SCN issued.
24. I have filed all my due returns. However, my registration status is still showing as Suspended. How can I update my status?
Once all the due returns are filed, proceedings will be auto dropped for cancellation of the GSTIN in cases where SCN has been issued for non-filing of Returns/Statements by the system and your status will change from ‘Suspended’ to ‘Active’. In case proceedings are not dropped automatically,
a) You can click on INITIATE DROP PROCEEDING button to update your status.
b. Success message will be displayed, and proceedings will be auto dropped.
25. What happens if I do not furnish details of my bank account within 30 days of grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier.
If I do not furnish details of my bank account within 30 days of grant of registration or before the due date of filing GSTR-1/IFF, It would result into following:
a) Taxpayer Registration would get suspended after 30 days and intimation in FORM REG-31 will be issued to the Taxpayer.
b) Get the Taxpayer debarred from filing any further GSTR-1/IFF.
26. How can my suspension due to failure to furnish my bank account details post registration be revoked?
If you have updated your bank account details through non-core amendment, the suspension will be automatically revoked. Click here to see further details.
27. What happens if I do not furnish my bank account details even after suspension of registration?
If the bank account details are not updated even after 30 days of issuance of FORM REG-31, the registration after suspension may also be taken up for cancellation process by the officer.
The relevance of PAN in Income Tax exists as an important document but there is a GST number called GSTIN. It is issued to the people who are collecting and depositing GST.
The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of the death of a registered person, the legal heirs can apply for cancellation. There are circumstances in which a taxpayer may not need GSTIN. In such a situation, taxpayers can apply for the cancellation of the GST registration number.
Surrender and Cancellation of GSTIN
There were two prominent concepts regarding the cancellation of the GSTIN. A person holding a Goods and Service Tax Identification Number or GSTIN to collect and submit GST to the government can either voluntarily surrender it or be cancelled by the GST officer. It only happens if the taxpayer violates any of the provisions or rules of the Act. For voluntary surrender, taxpayers can easily submit surrender applications online along with the necessary details.
Application for Surrender of the GST Registration
The following people can apply to surrender the GST registration obtained in India
All registered persons hold GSTIN under section 22 of the CGST Act.
The legal heir of the registered person in case of the death of such a registered person.
But a registered supplier who was not required to get GSTIN, but still obtained it voluntarily, can apply for the surrender of registration only after the expiry of one year.
What are the Circumstances for Applying for a Surrender of GSTIN?
Section 29 of the CGST Act 2017 lists the circumstances under which surrender or cancellation of GST registration can be initiated.
The following are the circumstances:
The registered person has discontinued the business or has completely shut it down.
The registered person has demerged the existing business, and now he will have to surrender the old GSTIN and apply for fresh registration for the new business.
A change in the structure or constitution of a business leads to the change of PAN. GSTIN is PAN-based, so in the event of a change of PAN, a fresh registration is required, and all registrations will be surrendered.
The GSTIN is required by any person whose total turnover during the year exceeds ₹20 lakhs in the case of services or ₹40 lakhs in the case of goods.
Any other reason that the applicant can successfully prove in the surrender application
After-Effects of the Surrender of GSTIN
After surrendering GST registration, the following happens:
There will be no need to fill out GST returns.
The person will not be able to continue business after the surrender. If he continues to operate his business, this will invite a penalty.
There will be no liability for collecting and depositing GST in the future.
The provisions and rules of GST will not apply to this individual.
Details for Surrender of the GST Registration
The surrender or cancellation of GST registration is filed in the form GST REG 16 within 30 days of the event that requires the surrender of registration.
The following are key details that should be included in the form:
The correspondence address, along with a valid mobile number and email address.
The reasons for which the applicant is applying for the surrender of registration.
Details of the stock in custody.
The detail of input tax availed on the inventory or stock in possession.
The details of capital goods and input tax credits are available on them.
In case of a merger, demerger or amalgamation, details of the new entity.
Details of the recently filled GST return.
Mention the amount of GST liability, if applicable, and provide the payment details.
There should be no pending GSTR-3B, GSTR-1 and GST annual returns.
Procedure for Surrendering GSTIN
The following steps are to be followed for filling out the application for surrender or cancellation of GST registration.
Log in to the portal using your user ID and password.
Select “services” on the dashboard and select “application for cancellation”.
The portal will show three tabs under “application for cancellation”, namely:
Basic details
Cancellation details
Verification
Provide basic details such as your business address, future correspondence address, valid email id and mobile number.
After completing the basic details section, click “save and continue”.
Now it is time to fill in the next tab, “Cancellation details”.
A drop-down list provides different reasons for the cancellation of registration. Choose the applicable option and provide the necessary details as required by the selected option.
Now it is time for the final tab, “Verification”. Under this tab, the applicant must state that all the above-provided information is true and correct. Mention the place and select the authorised signatory.
The application can be verified either by digital signature or EVC option. A digital signature is compulsory for companies and limited liability partnerships (LLPs).
The applicant will receive a confirmation message and an acknowledgement number. The applicant can track the status of the application through that number.
After this step, the GST officer will review the application and will issue an order of cancellation within 30 days of the application. The effective date of cancellation of registration will be mentioned in the order.
Grounds for Rejection of the Application
The GST officer can reject the application for the following reasons:
The application is incomplete or has incorrect information.
The GST liability is not paid in full.
In the event of transfer, sale, merger, demerger or amalgamation, the new entity has not applied for registration.
The GST officer will not reject the application directly. First, the officer will send an intimation to the applicant stating the reason for rejection. The applicant must rectify the application within seven days of the intimation’s receipt.
How to Delete GST Account?
To know how to close a GST account, you will need to follow the process set by the GST department in your country. Generally, this involves submitting a request to cancel your registration, along with any required documentation. It is important to ensure that all GST returns have been filed and taxes have been paid before requesting to cancel your registration. It is also advisable to check with the GST department for any specific instructions or requirements for terminating a GST account.
FAQs
Q: When can the commissioner revoke the GST registration?
Ans:
The commissioner can also revoke the GST registration if the registered person fails to comply with the rules and regulations of the act.
Q: What are the major tabs under “application for cancellation”?
Ans:
When selecting “application for cancellation” under Services on the dashboard. Three tabs appear: Basic information, cancellation information and verification.
Q: What is section 29 of CGST?
Ans:
Section 29 of the Central Goods and Services Tax (CGST) Act, 2017, deals with the powers of the Commissioner of GST to grant or cancel the registration of a taxable person. This section provides that the Commissioner of GST may, on an application made by a taxable person, grant or cancel the registration under the CGST Act.
Q: What is the importance of GST registration?
Ans:
There are several reasons why it is important to register for GST:
Legal Requirement: In many countries, GST registration is mandatory for businesses that exceed a certain annual revenue threshold or engage in specific types of activities. Failure to register for GST can result in penalties and fines.
Tax Compliance: GST registration helps businesses stay compliant with tax laws and regulations, including filing regular GST returns.
Input Tax Credit: GST registration allows businesses to claim input tax credit on the GST paid on their inputs, which can reduce their overall tax liability.
Better Cash Flow: GST registration can help businesses manage their cash flow more effectively, as they can claim input tax credits on a regular basis, rather than waiting for the end of the financial year.
Improved Transparency and Predictability: GST registration helps to create a more transparent and predictable business environment, as it makes it easier for businesses to understand their tax obligations and for the government to track and collect taxes.
Improved Competitiveness: GST registration can also help businesses become more competitive, as it allows them to claim input tax credits and reduce the overall cost of goods and services.
Cancellation of GST registration ‘suo moto’ signifies that the tax authority decided to cancel the registration independently. According to Section 29(2) of the CGST Act, the tax office needs a good reason to begin cancellation procedures.
Needed For Automatic GST Cancellation
If any of the following is true, the tax officer may cancel the transaction suo moto
If taxpayers register a business based on a lie, omission, or misrepresentation they will face penalties
The taxpayer did not apply for GSTRegistration Process within 90 days of the appointed date or such later date as may be prescribed
The taxpayer has engaged in tax evasion by supplying goods or services without issuing an invoice, as prohibited by the CGST Act
It has come to our attention that the taxpayer has issued an invoice without providing the products or services for which the invoice is being given to claim an input tax credit or a tax refund falsely.
Upon the death of the sole proprietor, if the business’s governing documents provide for a sole proprietorship; upon the amalgamation, transfer, merger, demerger, or similar event; and in the event of any other similar event.
If the Constitution is amended in a way that affects PAN,
If the company decides to shut down and stop operating,
The Correct Suo Moto Canceling Procedure
GST legislation requires the tax officer to provide the taxpayer a show-cause notice, giving the taxpayer a chance to explain his side of the story. The taxpayer must provide reasons why the registration should not be revoked in response to the show-cause notice. The taxpayer must react to this notice within seven business days.
If the tax officer is happy with his response, he may abandon the cancellation proceedings he has launched and notify the taxpayer of his decision through SMS or email.
If the tax office does not hear back from the taxpayer within seven business days, or if the taxpayer’s response is unsatisfactory, the registration will be canceled.
Ability to get one’s voice heard
The cancellation of registration must be preceded by the issuance of a Show Cause Notice (SCN) and the taxpayer’s reasonable opportunity to respond to the SCN. The Tax Official must therefore serve the taxpayer with an SCN before beginning Suo Moto cancellation proceedings, requesting an explanation as to why the taxpayer’s registration should not be canceled.
What Will Happen If Suo Moto Cancellation is Canceled?
Change the status of the UIN/GSTIN/GSTP ID from “Proceeding for Cancellation initiated” to “Inactive,” and notify any other relevant Tax Authorities.
The taxpayer won’t be able to submit a return or invoices for the period after the cancellation order’s effective date.
After a cancellation order has been issued, the taxpayer will no longer be able to change their registration information. You may alter your contact info (including email and cell phone) until any outstanding balances or refunds are resolved.
React to orders/notices, non-essential amendments, etc., linked to assessment/recovery/enforcement.
When will the GST freeze go into effect?
If a taxpayer initiates cancellation of registration, the date of suspension will be the date on which the cancellation application was filed; if the GST officer starts cancellation of registration “Suo Moto,” the date of suspension will be the date on which the SCN for cancellation of registration is issued.
Can I still file my prior period’s GST returns if I cancel my “Suo Moto” registration?
After a suo moto cancellation, GST Returns can be filed for the prior period (i.e., the time before the date of cancellation specified in the cancellation order).
However, the taxpayer is not permitted to submit a return or invoices for the time period following the cancellation order’s effective date. Furthermore, GSTP will be unable to act on your behalf to perform GSTP duties for the period after the cancellation date specified in the cancellation order.
How can I get my GSTIN activated once it has been temporarily suspended?
A GSTIN that is currently in the “Suspended” status will be returned to the “Active” status if and only if the officer rejects the cancellation of the registration application or the suo moto cancellation process is abandoned after the hearing. When a taxpayer’s GSTIN is moved from the “Suspended” to the “Active” state, he is once again considered an active taxpayer and has full access to the GST Portal, as is the case for all active taxpayers.
Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months
Supplies any goods and / or services without issue of any invoice, in violation of the provisions of the Act or rules made thereunder, with the intention to evade tax
Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax
Collects any amount as representing the tax but fails to pay the same to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
Fails to pay any amount of tax, interest or penalty to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
Person is no longer liable to deduct tax at source as per the provisions of GST Law
Person is no longer liable to collect tax at source as per the provisions of GST Law
Person no longer required to be registered under provisions of GST Law
GST Practitioner is found guilty of misconduct in connection with any proceeding under the GST Law.
Composition person has not furnished returns for three consecutive tax periods,
Registration has been obtained by means of fraud, willful misstatement or suppression of facts. Etc.
2. Will I be intimated before the Suo Moto Cancellation of Registration?
Yes. Registration cannot be cancelled without a Show Cause Notice being given to taxpayer and a reasonable opportunity of being heard by the Tax Official. Thus, in case of Suo Moto cancellation of registration, a Show Cause Notice shall be issued by the Tax Official/ Proper officer to the taxpayer and taxpayer would be given a chance to file clarifications in the stipulated time limit.
3. What is the precondition for Suo Moto Cancellation of Registration?
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.
4. What is the duration within which I need to file a response for Show Cause Notice regarding Suo Moto Cancellation of Registration?
You need to provide response within the prescribed time limit of 7 working days’ time to file reply to the Show Cause Notice (SCN) using the Services > Registration > Application for Filing Clarifications link. If no response is given within prescribed 7 working days, the Tax Official can proceed with Cancellation of registration.
Status of GSTIN will change from “Suspended” to “Active”.
6. What shall be the effective date of cancellation of registration?
Effective date of cancellation will be the date as mentioned in the cancellation order.
7. Will the cancellation of registration means that I have no liabilities?
No, any liabilities prior to the date of suo moto cancellation will have to be paid by the taxpayer, irrespective of the fact that when determination of liabilities are done.
Any liability which is related to that particular GSTIN is required to be paid by the taxpayer. It can be recovered later on even after the cancellation of GSTIN.
8. Will the Suo moto Cancellation of registration be proceeded separately for each act?
Cancellation of registration under the CGST Act or SGST/UTGST or IGST Act shall be deemed to be a cancellation of registration under SGST Act / UTGST Act or CGST Act respectively and vice versa.
9. What will happen once Registration is cancelled?
a) Once registration is cancelled by the Tax Authority, the taxpayer will be intimated about the same via SMS and Email. Order for Cancellation of Registration will be issued and intimated to the Primary Authorized Signatory by Email and SMS.
b) Order will be made available on taxpayer’s dashboard to view, print and download.
c) Status of the GSTIN/UIN/GSTP ID from ‘Proceeding for Cancellation initiated’ to ‘Inactive’ and will be intimated to the other concerned Tax Authority.
d) Taxpayer would not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions for any Taxpayer for the period after the date of cancellation mentioned in the cancellation order.
However, email address and mobile number can be updated till dues/ refund are cleared.
12. Can I submit returns of the earlier period after suo moto cancellation of registration?
You can submit returns of the earlier period (i.e. for the period before date of cancellation mentioned in the cancellation order), after suo moto cancellation of registration. However, you will not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions on your behalf for the period after the date of cancellation mentioned in the cancellation order.
13. Where can I view the Show Cause Notice regarding Suo Moto Cancellation of Registration?
Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration.
14. How can I reply to the Show Cause Notice regarding Suo Moto Cancellation of Registration?
To reply to the Show Cause Notice related to Suo Moto Cancellation, Navigate to Services > Registration> Application for Filing Clarifications.
The application is displayed for filing clarification. The reason for cancellation provided by Tax Officer will be displayed in the form. You can enter your Response.
Note: Taxpayer is required to submit his/her response to each of the cancellation reasons invoked by the tax officer in the notice.
15. Where can I view the date for personal hearing regarding Suo Moto Cancellation of Registration?
Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration. Download the notice to view the personal hearing date.
17. Can I submit application for cancellation of registration, in case Tax Official has already initiated the suo-moto cancellation of Registration?
No, you cannot submit application for cancellation of registration, in case Tax Official has already initiated suo-moto cancellation of your Registration.
18. The status my GSTIN is showing as “Suspended” under My Profile. Why?
When a taxpayer files an application for cancellation of registration or Suo Moto cancellation has been initiated by the Tax Official, the status of the GSTIN is shown as “Suspended”. This will be changed to “Active” only when application for cancellation of registration is rejected by the Tax Official or Suo Moto cancellation proceeding is dropped, after hearing.
19. The status my GSTIN is showing as “Suspended” under My Profile. Can I perform any activity on the GST Portal?
When the status of your GSTIN is showing as “Suspended” status, you can perform certain activities on GST Portal like filing Appeal, making payment, filing for Refunds, reply to Assessment/Recovery/ Enforcement related orders/ notices, even make non-core amendment etc..
Taxpayer will not be able to file core amendment application till the time registration is suspended. However, email address and mobile number can be updated till dues/ refund are cleared.
Suo Moto cancellation has been initiated by the Tax Official: Date of Suspension will be the date on which notice for Cancellation of registration (Form GST REG-17) is issued.
21. What will happen once the status is changed from “Suspended” to “Active”?
Once the status of GSTIN is changed from “Suspended” to “Active”, you will be again treated as an Active taxpayer and all the accesses given to the Active taxpayers on GST Portal will be enabled for you immediately.
23. What happens if I have filed all my due returns after SCN has been issued by the system for non-filing of Returns/Statements and my status becomes suspended?
Once all the due returns are filed, further proceedings will be auto dropped for cancellation of the GSTIN where SCN has been issued for non-filing of Returns/Statements by the system and the registration status would become active even if you have not responded to the SCN issued.
24. I have filed all my due returns. However, my registration status is still showing as Suspended. How can I update my status?
Once all the due returns are filed, proceedings will be auto dropped for cancellation of the GSTIN in cases where SCN has been issued for non-filing of Returns/Statements by the system and your status will change from ‘Suspended’ to ‘Active’. In case proceedings are not dropped automatically,
Suo Moto The officer may initiate the cancellation of registration for any of the grounds listed in the GST law’s provisions, such as:
Without issuing an invoice, or providing any goods or services to avoid paying taxes.
Any taxpayer who isn’t a composition taxpayer and who hasn’t filed any returns for a continuous six months
The dealer in compositions has not provided returns for three consecutive tax periods.
Issues any invoice or bill without supply of goods and/ services in violation of the GST law leading to wrongful availment or utilization of input tax credit or refund of tax.
Regardless of the amount, collects tax but fails to pay it to the federal or state government within three months of the date the payment is due.
Refuses to reimburse the Central or State Government for any taxes, interest,
or penalties within three months of the date that they become due.
No longer necessary for a person to be GST registered
A GST Practitioner is found to have violated the GST Law in connection with any proceeding.
Business discontinuation or shutdown Constitutional change resulting in PAN change
ceased to be subject to taxation
A business that is sold, leased, combined with another business, or otherwise disposed of.
Death of Sole Proprietor
Registration was obtained through deception, deliberate false statements, or the omission of information. Etc.
How will the taxpayer be informed about Suo Moto Cancellation under GST?
The taxpayer will receive notification of this by email and SMS. The primary authorized signatory will get an email and SMS containing an order to revoke the GST registration.
The order will be made viewable, printable, and downloadable on the taxpayer’s dashboard.
What Effects would the Cancellation of Suo Moto have?
The status of the GSTIN/UIN/GSTP ID will change from “Proceeding for Cancellation initiated” to “Inactive,” and the other relevant Tax Authority will be informed.
After the cancellation date specified in the cancellation order, the taxpayer will not be able to file the return or upload invoices during that time.
Following the issuance of the cancellation order, the taxpayer will not be able to change the registration details. Email and mobile numbers, however, can still be updated up until the time that the debt or refund is paid.
The facility to apply for revocation will be available for the canceled registration.
After getting a notice of cancellation, what choices does the taxpayer have?
7 working days from the date of receipt of the Show Cause Notice, the Taxpayer must respond within the statutory time frame (SCN).
If the officer is satisfied with the taxpayer’s response,
Proceedings may be terminated.
By SMS and email, the primary authorized signatory will be informed that SCN has been dropped.
Order will be made accessible to the taxpayer’s dashboard for viewing, printing, and downloading.
GSTIN’s “Suspended” status will become “Active.”
The official may continue with the cancellation of registration if no response is provided within the allotted 7 working days.
When a taxpayer requests to have their registration canceled or When a Suo Moto cancellation has been started by the Tax Officer, the status of the GSTIN will show as “Suspended”.
A taxpayer can carry out the following actions on the GST website after GST is suspended:-
Filing of appeal
Making payment
Filing for refunds
Only for the time frame before the registration suspension may you file a return or upload invoices.
Response to orders/notices related to assessment/recovery/enforcement/related matters, non-core amendment, etc.
When does the suspension of the GST take effect?
If a taxpayer requests to have their registration canceled. The date that their registration was suspended is the day that their cancellation request was submitted.
The date of suspension will be the date on which SCN for cancellation of registration is issued if Suo Moto GST Cancellation has been initiated by the GST officer.
Can earlier period returns be filed after a Suo Moto cancellation of the GST registration?
After Suo Moto GST Cancellation, returns for the prior period. it should be done before the cancellation date specified in the cancellation order) may be filed.
The taxpayer will not, however, be permitted to submit returns or upload invoices for the period.
following the cancellation date specified in the cancellation order.
Additionally, GSTP will not be able to perform GSTP duties on your behalf for a certain amount of time following the cancellation date specified in the cancellation order.
How can the GSTIN’s “Suspended to Active” status be changed?
Only when the officer denies the application for cancellation of registration or when the Suo Moto cancellation process is abandoned after a hearing will the GSTIN’s status change from “Suspended” to “Active.”
A taxpayer will once again be treated as an active taxpayer and will have immediate access to all of the features provided to active taxpayers on the GST Portal once the status of his GSTIN is changed from “Suspended” to “Active.”
Suo Moto Cancellation
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FAQs > Suo Moto Cancellation
1. Under which circumstances can a Tax Official initiate for cancellation of GST registration?
Suo Moto Cancellation of registration may be initiated by the Tax Official for various situations as mentioned in the provisions of GST law like: –
Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months
Supplies any goods and / or services without issue of any invoice, in violation of the provisions of the Act or rules made thereunder, with the intention to evade tax
Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax
Collects any amount as representing the tax but fails to pay the same to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
Fails to pay any amount of tax, interest or penalty to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
Person is no longer liable to deduct tax at source as per the provisions of GST Law
Person is no longer liable to collect tax at source as per the provisions of GST Law
Person no longer required to be registered under provisions of GST Law
GST Practitioner is found guilty of misconduct in connection with any proceeding under the GST Law.
Discontinuation/Closure of Business
Change in Constitution leading to change in PAN
Ceased to be liable to pay tax
Transfer of business on account of amalgamation, merger/demerger, sale, lease or otherwise disposed of etc.
Death of Sole Proprietor
Composition person has not furnished returns for three consecutive tax periods,
Registration has been obtained by means of fraud, willful misstatement or suppression of facts. Etc.
2. Will I be intimated before the Suo Moto Cancellation of Registration?
Yes. Registration cannot be cancelled without a Show Cause Notice being given to taxpayer and a reasonable opportunity of being heard by the Tax Official. Thus, in case of Suo Moto cancellation of registration, a Show Cause Notice shall be issued by the Tax Official/ Proper officer to the taxpayer and taxpayer would be given a chance to file clarifications in the stipulated time limit.
3. What is the precondition for Suo Moto Cancellation of Registration?
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.
4. What is the duration within which I need to file a response for Show Cause Notice regarding Suo Moto Cancellation of Registration?
You need to provide response within the prescribed time limit of 7 working days’ time to file reply to the Show Cause Notice (SCN) using the Services > Registration > Application for Filing Clarifications link. If no response is given within prescribed 7 working days, the Tax Official can proceed with Cancellation of registration.
5. What will happen once Show Cause Notice is Dropped?
In case the Tax Official is satisfied with the response received from the taxpayer, on the Show Cause Notice issued, the proceedings can be dropped.
Primary Authorized Signatory will be intimated about dropping of SCN by SMS & Email.
Issuance of Order for dropping of SCN will also be intimated to the Primary Authorized Signatory by Email and SMS.
Order will be made available on the taxpayer’s dashboard to view, print and download.
Status of GSTIN will change from “Suspended” to “Active”.
6. What shall be the effective date of cancellation of registration?
Effective date of cancellation will be the date as mentioned in the cancellation order.
7. Will the cancellation of registration means that I have no liabilities?
No, any liabilities prior to the date of suo moto cancellation will have to be paid by the taxpayer, irrespective of the fact that when determination of liabilities are done.
Any liability which is related to that particular GSTIN is required to be paid by the taxpayer. It can be recovered later on even after the cancellation of GSTIN.
8. Will the Suo moto Cancellation of registration be proceeded separately for each act?
Cancellation of registration under the CGST Act or SGST/UTGST or IGST Act shall be deemed to be a cancellation of registration under SGST Act / UTGST Act or CGST Act respectively and vice versa.
9. What will happen once Registration is cancelled?
a) Once registration is cancelled by the Tax Authority, the taxpayer will be intimated about the same via SMS and Email. Order for Cancellation of Registration will be issued and intimated to the Primary Authorized Signatory by Email and SMS.
b) Order will be made available on taxpayer’s dashboard to view, print and download.
c) Status of the GSTIN/UIN/GSTP ID from ‘Proceeding for Cancellation initiated’ to ‘Inactive’ and will be intimated to the other concerned Tax Authority.
d) Taxpayer would not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions for any Taxpayer for the period after the date of cancellation mentioned in the cancellation order.
e) Taxpayer will not be able to amend registration details after issuance of cancellation order. However, email address and mobile number can be updated till dues/ refund are cleared. The facility to file application for revocation (if applicable) will be open for the Cancelled Registration.
10. Will I be able to login after suo moto cancellation of registration?
Yes, you can login to the GST Portal after suo moto cancellation of registration.
11. Can I update my email and mobile after suo moto cancellation of registration?
You will not be able to amend registration after issuance of cancellation order.
However, email address and mobile number can be updated till dues/ refund are cleared.
12. Can I submit returns of the earlier period after suo moto cancellation of registration?
You can submit returns of the earlier period (i.e. for the period before date of cancellation mentioned in the cancellation order), after suo moto cancellation of registration. However, you will not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions on your behalf for the period after the date of cancellation mentioned in the cancellation order.
13. Where can I view the Show Cause Notice regarding Suo Moto Cancellation of Registration?
Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration.
14. How can I reply to the Show Cause Notice regarding Suo Moto Cancellation of Registration?
Navigate to Services > Registration> Application for Filing Clarifications to reply to the Show Cause Notice regarding Suo Moto Cancellation of Registration.
15. Where can I view the date for personal hearing regarding Suo Moto Cancellation of Registration?
Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration. Download the notice to view the personal hearing date.
17. Can I submit application for cancellation of registration, in case Tax Official has already initiated the suo-moto cancellation of Registration?
No, you cannot submit application for cancellation of registration, in case Tax Official has already initiated suo-moto cancellation of your Registration.
18. The status my GSTIN is showing as “Suspended” under My Profile. Why?
When a taxpayer files an application for cancellation of registration or Suo Moto cancellation has been initiated by the Tax Official, the status of the GSTIN is shown as “Suspended”. This will be changed to “Active” only when application for cancellation of registration is rejected by the Tax Official or Suo Moto cancellation proceeding is dropped, after hearing.
19. The status my GSTIN is showing as “Suspended” under My Profile. Can I perform any activity on the GST Portal?
When the status of your GSTIN is showing as “Suspended” status, you can perform certain activities on GST Portal like filing Appeal, making payment, filing for Refunds, reply to Assessment/Recovery/ Enforcement related orders/ notices, even make non-core amendment etc..
However, once GSTIN is suspended:
During the suspension status, taxpayer will be allowed to file return or upload invoices only for the period before the registration was suspended.
Taxpayer will not be able to file core amendment application till the time registration is suspended. However, email address and mobile number can be updated till dues/ refund are cleared.
20. What is the effective date of suspension?
When a taxpayer files an application for cancellation of registration: Date of Suspension will be the date on which Cancellation application was filed.
Suo Moto cancellation has been initiated by the Tax Official: Date of Suspension will be the date on which notice for Cancellation of registration (Form GST REG-17) is issued.
21. What will happen once the status is changed from “Suspended” to “Active”?
Once the status of GSTIN is changed from “Suspended” to “Active”, you will be again treated as an Active taxpayer and all the accesses given to the Active taxpayers on GST Portal will be enabled for you immediately.
23. What happens if I have filed all my due returns after SCN has been issued by the system for non-filing of Returns/Statements and my status becomes suspended?
Once all the due returns are filed, further proceedings will be auto dropped for cancellation of the GSTIN where SCN has been issued for non-filing of Returns/Statements by the system and the registration status would become active even if you have not responded to the SCN issued.
24. I have filed all my due returns. However, my registration status is still showing as Suspended. How can I update my status?
Once all the due returns are filed, proceedings will be auto dropped for cancellation of the GSTIN in cases where SCN has been issued for non-filing of Returns/Statements by the system and your status will change from ‘Suspended’ to ‘Active’. In case proceedings are not dropped automatically,
a) You can click on INITIATE DROP PROCEEDING button to update your status.
b. Success message will be displayed, and proceedings will be auto dropped.
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.
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.
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.
GST registration could not be suspended and cancelled on basis of direction of Head Office without assigning any reason; High Court sets aside cancellation order
HIGH COURT OF TELANGANA
S.B.Traders
v.
Superintendent
UJJAL BHUYAN, CJ. AND C.V. BHASKAR REDDY, J.
W.P.NOS.39498 & 39502 OF 2022
OCTOBER 28, 2022
Registration – Cancellation of registration – Show cause notice was issued as to why registration should not be canceled as same was obtained by means of fraud, willful misstatement or suppression of facts – Reply to show cause notice was filed and on same day order was passed canceling GST registration on ground that same has been canceled as per directions of Head Office – HELD: Absence of any reason to issue show cause notice for cancellation of registration – Particulars of any fraud, willful misstatement or suppression of facts have not been mentioned in notice – Suspending registrations on basis of direction of Head Office could not be a reason for cancellation of GST registration – Notice issued and order passed exhibit complete non-application of mind – Order cancelling registration was to be set aside [Section 29 of Central Goods and Services Tax Act, 2017/Telangana Goods and Services Tax Act, 2017] [Paras 5, 8 to 10] [In favour of Assessee]
ORDER
Ujjal Bhuyan, CJ. – Heard Mr. Bhaskar Reddy Vemireddy, learned counsel for the petitioners and Mr. B.Narasimha Sarma, learned Standing counsel for Income Tax Department appearing on behalf of the respondent Nos. 1 & 2. Also heard Mr. G.Praveen Kumar, learned Deputy Solicitor General of India for respondent No.3.
2. By filing these petitions under Article 226 of the Constitution of India, petitioners have assailed the legality and validity of the orders dated 12.10.2022 passed by the Superintendent, Mehdipatnam-II Circle, Hyderabad ordering cancellation of Goods and Services Tax (GST) registration of the petitioners.
3. Petitioners before us are the proprietary concerns engaged in the business of purchase and sale of iron scrap. Following enactments of the Central Goods and Services Tax Act, 2017 and related laws, petitioners got themselves registered with the GST authorities having GST registrations as follows:
“GSTIN No.36DHGPA5935L1Z4 and GSTIN No.36DWAPA209G1ZT”
4. First respondent i.e., Superintendent, Mehdipatnam II Circle, issued show cause notices to the petitioners on 29-9-2022 calling upon the petitioners to show cause as to why their GST registration should not be cancelled. The reason given for cancellation of GST registrations is as follows:
“1. In case, Registration has been obtained by means of fraud, wilful misstatement or suppression of facts.”
5. From the above, it is evident that there is no reason at all to issue show cause notice for cancellation of GST registrations of the petitioners. Respondent simply mentioned that in case the petitioners have obtained GST registration by means of fraud, wilful misstatement or suppression of facts, then their GST registrations were liable to be cancelled. No particulars of any such fraud, wilful misstatement or suppression of facts have been mentioned. In fact the notice issuing authority himself was not certain whether the GST registrations were obtained by the above means. Therefore, he says that ‘in case registrations were obtained by such means’.
6. We are of the view that on such surmises and conjectures, no show cause notices could have been issued by the first respondent. Issuance of show cause notice for cancellation of GST registration has got serious consequences and could not have been issued in such a cavalier manner.
7. Proceeding further, we find that by the aforesaid show cause notices, petitioners were directed to furnish reply within seven working days from the date of service of notices. Show cause notices are dated 29-9-2022. However, in the very next line, petitioners were directed to appear before the first respondent on 30-9-2022 @ 11.40 A.M. If the petitioners were given seven working days time to submit reply, it is beyond comprehension as to why the petitioners should be directed to appear before the Superintendent on the very next day i.e., on 30-9-2022 @ 11.40 A.M. Further, we find that as per last sentence of the show cause notices, petitioners’ registrations were suspended w.e.f. 29-9-2022.
8. Coming back to the impugned orders, we find that petitioners had submitted show cause reply on 12.10.2022 and on the very same day i.e., on 12.10.2022, the impugned orders were passed cancelling GST registrations of the petitioners. The reason given for such cancellation is that as per directions of the Head Office dated 28-9-2022, the registrations were suspended and cancelled. What was the direction of the Head Office was not disclosed. Suspending registrations on the basis of direction of the Head Office cannot be a reason for cancellation of GST registration.
9. From a conjoint reading of the show cause notices and orders for cancellation of the registrations, we are of the view that conduct of the first respondent does not at all inspire the confidence of the Court. There appears to be something amiss in the entire affair. The show cause notices were issued and the impugned orders were passed in a most mechanical manner exhibiting complete non- application of mind.
10. Accordingly, we set aside the impugned orders for cancellation of GST registration dated 29-9-2022 of the petitioners. We further direct the Principal Commissioner of Central Tax, Hyderabad Commissionerate, to look into the conduct and functioning of the first respondent and thereafter take remedial steps.
This writ petition is accordingly allowed.
Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs.
In its 47th Meeting, the GST Council has suggested automatic revocation of cancelled GST registration in certain cases.
Press Release of 47th GST Council Meeting states:
Provision for automatic revocation of suspension of registration in cases where suspension of registration was done by the system under Rule 21A(2A) of CGST Rules, for non-compliance in terms of clause (b) or clause (c) of sub-section (2) of section 29 [continuous non-filing of specified number of returns], once all the pending returns are filed on the portal by the taxpayer. (Amendment in rule 21A)
In case where registration is cancelled suo-motu by the proper officer, the taxable person can apply within 30 days of service of cancellation order, requesting the officer for revoking the cancellation ordered by him. However, before so applying, the person has to make good the defaults (by filing all pending returns, making payment of all dues and so) for which the registration was cancelled by the officer.
If satisfied, the proper officer will revoke the cancellation earlier ordered by him. However, if the officer concludes to reject the request for revocation of cancellation, he will first observe the principle of natural justice by way of issuing notice to the person and hearing him on the issue.
The GST registration can be cancelled for the following reasons:
a) A person registered under any of the existing laws, but who is not liable to be registered under the GST Act;
b) The business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of;
c) There is any change in the constitution of the business;
d) The taxable person (other than the person who has voluntarily taken registration under sub-section (3) of section 25 of the CGST Act, 2017) is no longer liable to be registered;
e) A registered person has contravened such provisions of the Act or the rules made thereunder;
f) A person paying tax under Composition levy has not furnished returns for three consecutive tax periods;
g) Any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of six months;
h) Any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration;
i) Registration has been obtained by means of fraud, willful misstatement or suppression of facts.
OFFICE OF THE PRINCIPAL ADDITIONAL DIRECTOR GENERAL OF SYSTEMS & DATA MANAGEMENT
GST & CENTRAL EXCISE, GST BHAVAN,
No. 26/1 MAHATHMA GANDHI ROAD, NUNGAMBAKKAM, CHENNAI -34
Tel. Ph: 044-28331101 Fax:044-28331104
e-mail: dgschennai@icegate.gov.in
Date: 23.03.2022
Registration Advisory No. 07/2022
Sub: Introduction of Restoration of Cancelled Registration based on Appellate order – reg.
Communications have been received from field formations about passing judicial / appeal orders against cancellation orders, passed suo motu by the Range officers u/s 29 of the CGST Act, 2017. It has also come to notice that taxpayers in certain cases, had obtained orders from High Courts / appellate authorities to restore registrations cancelled on their own request. Since the functionality to implement the orders online was not ready, a temporary mechanism to restore cancelled registrations was created in the back-end and an advisory vide e-mail dated 16th June ’2021 (copy enclosed), was issued in this regard.
2.) Now, a functionality in the name of ‘Restoration of Cancelled Registration’ has been developed and deployed e.f. 23.03.2022, to facilitate the jurisdictional Range officers to restore the registrations in pursuance of judicial / appellate orders.
3.) This functionality would cover both the cancellations viz.. ordered suo motu by Range officers against which appeal orders were obtained without applying for revocation through form REG-21, and cancelled on the request from the taxpayers. A step by step guide along with indicative screens is annexed herewith (Annexure ‘A’) for guidance of the officers using the functionality.
4.) Necessary permission to operate this functionality is being enabled for the Jurisdictional Range Officers.
5.) As per the contractual obligations, the vendor (Wipro) is required to rectify the defects/ errors/ bugs noticed, if any, in the functionality within 30 days of its deployment to production. It is, therefore, requested that this advisory may be circulated among all the concerned officers for their guidance, and issues, if any, in performance of the functionality may immediately be reported to helpdesk@icegate.gov.in for necessary resolution. Copy of the communication with ticket details may also be forwarded to this office at dgschennai@icegate.gov.in for further follow up.
In the case of Apparent Marketing Private Limited Vs State Of U.P., the Allahabad High Court has held that:
20.) Remarkably, despite reply having been furnished by the assessee, the order dated 2 1.08.2020 is as vague and defective as the initial notice inasmuch as, only reason given in that order is that the assessee firm is “bogus”. No discussion has been made of the reply furnished by the assessee and no reason has been given why the ex parte order dated 13.08.2020 has not been recalled.
21.) In the above facts, it is equally remarkable to note that the Appeal Authority also chose to consider the matter on merits. Though the appeal is a continuation of original proceedings and it may have been open to the Appeal Authority to hear and decide the matter on merits, however, in absence of any legally permissible reason given by the original authority, the only proper course the Appeal Authority may have adopted, may have been to set aside the orders dated 13.08.2020 and 21.08.2020. Unless the Appeal Authority had corrected that error of the original authority especially in matters of procedure, such mistakes are liable to be repeated affecting numerous citizens/assessees.
22.) For the reasons noted above, the orders dated 12.02.202 1, 2 1.08.2020 and 13.08.2020 cannot be sustained. They are set aside. Accordingly, the present writ petition succeeds and is allowed. It is left open to the respondent authority to issue a fresh notice on any specified ground mentioned under Section 29(2) of the Act. That proceeding, if initiated, may be decided on its own merit, without being prejudiced by any observation made in this order. No order as to costs.
Vide Circular No. 148/04/2021-GST, the CBIC has prescribed Standard Operating Procedure (SOP) for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the CGST Act, 2017 and rule 23 of the CGST Rules, 2017.
![Breaking: GST Department Can Not Cancel GST Registration By Only Mention Firm As “Bogus” [Read Judgement]](https://i0.wp.com/taxconcept.net/wp-content/uploads/2022/03/GST-REGISTRATION-CANCELLATION-5a48c131.png?resize=300%2C168&ssl=1)
