SUSPENSION OF REGISTRATION UNDER GST
The Goods and Services Tax
Act, 2017 came into force in India with effect from 1.7.2017.
The taxpayers’ GSTIN were
being cancelled if the returns were not filed for long period i.e. more than
six months by the department.
In certain cases, the
taxpayers submits application for cancellation of registration due to closure
of business or and the taxpayer’s aggregate annual turnover is below the
registration threshold limit and also for some other reasons. In such cases the cancellation applications
were to be verified by the department officials.
At the time of verification of
such applications the department identifies that the taxpayer has not filed
returns or paid tax dues and hence there are delay in passing GSTIN
cancellation orders by the department.
In certain cases the
cancellation of registration application were accepted after some period of
interval.
The Central Government has
issued the following instructions for the intervening period and collection of
tax etc.,
In the said rules, after rule 21,
the
following rule shall be inserted, namely:-
“Rule 21A. Suspension of registration.- (1) Where a registered person has applied
for
cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which
the cancellation
is sought, whichever is later, pending the completion of proceedings for
cancellation of registration under rule 22.
(2) Where the proper officer has
reasons
to believe that the registration of a person is
liable to be cancelled under section 29 or under rule 21, he may, after affording the said person a reasonable opportunity of being
heard, suspend the registration of such
person with effect from a date to be determined by him, pending the completion of
the proceedings for cancellation of registration under
rule 22.
(3) A registered person, whose registration has been suspended under sub-rule (1) or
sub-rule (2), shall not make any
taxable supply during the period of suspension and shall not be required to furnish any return under
section 39.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect.”.
In the said rules, in FORM GST REG-17, at the end, the following “Note” shall be inserted, namely:-
“Note: - Your registration stands
suspended with effect from ---------- (date).”.
In the said rules, in FORM GST REG-20, at the end, the following “Note” shall be inserted, namely:-
“Note: - Your registration stands
suspended with effect from ---------- (date).”.
This changes comes into force with effect from 1.2.2019.
The relevant notification is given below for ready
reference:
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i)]
Government of India Ministry of Finance
(Department of Revenue)
[Central Board of Indirect Taxes
and
Customs]
Notification No. 03/2019 – Central Tax
New Delhi,
the 29th January, 2019
G.S.R……(E). - In exercise of the powers
conferred by section 164 of the Central Goods and
Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules
further to amend the Central Goods
and
Services
Tax Rules, 2017, namely:-
1. (1) These rules may be called the Central Goods and Services Tax (Amendment) Rules,
2019.
(2) Save as otherwise provided in these rules, they shall come into force on the first day of
February, 2019.
6. In the said rules, after rule 21,
the
following rule shall be inserted, namely:-
“Rule 21A. Suspension of registration.- (1) Where a registered person has
applied for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which
the cancellation
is sought, whichever is later, pending the completion of proceedings for
cancellation of registration under rule 22.
(2) Where the proper officer has reasons
to believe that the registration of a person is
liable to be cancelled under section 29 or under rule 21, he may, after affording the
said person a reasonable opportunity of being
heard, suspend the registration of such
person with effect from a date to be determined by him, pending the completion of the proceedings
for cancellation of registration under rule 22.
(3) A registered person, whose registration has been suspended under sub-rule (1) or
sub-rule (2), shall not make
any
taxable supply during the period of suspension and
shall not be required to furnish any return under section 39.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22
and such revocation shall be effective from the date on which the suspension had come into effect.”.
In the said rules, in FORM GST REG-17, at the end, the following “Note” shall be inserted, namely:-
“Note: - Your registration stands suspended with effect from ---------- (date).”.
In the said rules, in FORM GST REG-20, at the end, the following “Note” shall be inserted, namely:-
“Note: - Your registration stands suspended with effect from ---------- (date).”.
[F.No.20/06/16/2018-GST (Pt. II)]
(Gunjan Kumar Verma) Under Secretary to the Government of India
Note:- The principal rules were published in the Gazette of India, Extraordinary, Part
II,
Section 3,
Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June,2017, published vide number G.S.R 610 (E), dated the 19th June, 2017 and last amended vide notification
No. 74/2018 - Central
Tax, dated the
31st December, 2018,
published
vide number G.S.R 1251 (E), dated the 31st December, 2018.