Suo Moto Cancellation of GST Registration - Update
Suo Moto Cancellation of GST registration may be initiated by the Tax Official for various situations mentioned in the provisions of GST law.
However GST 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 officer to the taxpayer and taxpayer would be given a chance to file clarifications in the stipulated time limit.
In case of show cause notice issue regarding suo moto cancellation of GST 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) online on GST portal. If no response is given within prescribed 7 working days, the Tax Official can proceed with cancellation of GST registration.
After cancellation of GST registration, 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.
In following situations, Suo Moto Cancellation of registration may be initiated by the Tax Official: -
- Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months.
- Composition person has not furnished returns for three consecutive tax periods.
- 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.
- Supplies any goods and / or services without issue of any invoice, in violation of the provisions of the GST Act, with the intention to evade tax.
- Issues any invoice without supply of goods and/or services in violation of the provisions of GST 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 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 or collect tax at source as per the provisions of GST Law.
- Person no longer required to be registered under provisions of GST Law.
- Discontinuation/Closure of Business or Change in Constitution leading to change in PAN
- Transfer of business on account of amalgamation, merger/demerger, sale, lease or otherwise disposed of etc.
- Death of Sole Proprietor
- Registration has been obtained by means of fraud, willful misstatement or suppression of facts. Etc.
How to verify that GST Registration is cancelled
(A) GST registration cancellation order will be made available on taxpayer’s dashboard to view, print and download on GST portal.
(B) Once registration is cancelled by the Tax Authority, the taxpayer will be intimated about the same via SMS and Email of Primary Authorized Signatory.
(C) 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.
(D) 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.