Suo Moto Cancellation Of GST Registration

Meaning

Suo moto cancellation of GST registration refers to the cancellation of a registered person's GST registration by the GST officer on their own initiative, without any request or application from the registered person. This can be done if there are valid reasons specified under Section 29(2) of the CGST/SGST Act.

Reasons For The Suo Moto Cancellation Of GST Registration

There can be several reasons for the Suo Moto cancellation of GST registration by the authorities. Some of the common reasons are:

• Non-filing of GST returns for a continuous period of 6 months or more
• Issuance of fake invoices or bill without the supply of goods or services
• Failure to deposit collected tax amount with the government within 3 months
• Failure to pay tax, interest, or penalty to the government within 3 months
• Found guilty of any misconduct under GST Law
• Discontinuation or transfer of business
• Registration obtained through fraudulent means
• Death of sole proprietor
• Non-filing of GST returns by composition taxpayers for 3 consecutive tax periods

If any of the above-mentioned situations arise, the authorities may cancel the GST registration of the taxpayer on their own.

What will happen once Registration is cancelled

Once registration is cancelled by the Tax Authority, the following will happen:

• The taxpayer will receive an SMS and email notification informing them about the cancellation. An Order for Cancellation of Registration will be issued and sent to the Primary Authorized Signatory via email and SMS.
• The order will be made available on the taxpayer's dashboard, allowing them to view, print, and download it.
• The status of the GSTIN/UIN/GSTP ID will change from "Proceeding for Cancellation initiated" to "Inactive." This change will be communicated to the other concerned Tax Authority.
• After the date of cancellation mentioned in the cancellation order, the taxpayer will not be allowed to file returns or upload invoices for any period. Additionally, GSTP (Goods and Services Tax Practitioner) will not be able to carry out their functions for any taxpayer for the period after the date of cancellation mentioned in the order.
• The taxpayer will not be able to amend registration details once the cancellation order is issued. However, they can still update their email address and mobile number until any outstanding dues or refunds are cleared. If applicable, the taxpayer will have the option to file an application for revocation of the cancelled registration.
   

Application for Revocation of Suo Moto Cancellation

• Revocation of GST registration can be applied for within 30 days from the date of service of order of cancellation, but only if the cancellation was done by the proper officer on his own motion.
• Application for revocation needs to be made in FORM GST REG-21, either directly or through a facilitation centre.
• Online revocation can be done through the GST Portal by following the required steps and attaching supporting documents.
• The proper officer will pass an order revoking the cancellation of registration in FORM GST REG-22 if satisfied with the reason provided.
• If the officer is not satisfied, a notice in FORM GST REG-23 will be issued, and the applicant needs to furnish a suitable reply in FORM GST REG-24 within 7 working days.
• UIN Holders, GST Practitioners, or those whose registration was cancelled on their own request or that of their legal heir are ineligible for revocation of cancelled registration..

Steps to to Activate Cancelled GST Registration via Suo Moto

• Log in to the GST portal with valid credentials.
• Go to the Dashboard and select the "registration" option under the services section.
• Choose the "application for revocation of cancelled registration" option.
• Provide reasons for revocation and attach necessary documents.
• Choose the authorized signatory and submit the application.
• The GST officer will process the application within 30 days.
• The officer will sign an order in FORM GST REG-22 to revoke the cancellation.
• Once the cancellation is revoked, the taxpayer's profile and registration certificate will be updated, and all accesses to the GST portal will be enabled.