27 August 2020
My query was regarding the Suo Moto Cancellation and Collection of tax .I'm working for a SErvice Oriented company and the GST registration was cancelled , Suo Moto by the Range (Jurisdictional Office) with effect from March 2020.
But the company instead of many advices from the accounts and audit department , the company management is collecting tax from the customers and giving tax invoices since then and continuing till this time.But since this is Covid time , No officer have been able to see through this yet,
Requesting you all to please clarify the following ,
1.Is the company righteous in collecting tax and giving tax invoice after suo moto cancellation of GST Registration. 2.Whether we can pay the tax through GSTR 3B so collected and file GSTR 1 for the cancellation period ( means the tax so collected from March 2020 after the cancellation of registration )
This answer is not exactly answered your query but can give an brief idea. One of our supplier has faced similar issue of Suo Moto Cancellation of registration wherein he has not filed few months returns for the Assessment year 2017-18 and he was continuing the business and selling his goods. similarly we have taken the ITC even in the year 2018-19 as well.
while doing the reconciliation of GSTR 2A. we came to know the registration was cancelled. we intimated the same to supplier and he had made the Payment first based on the Excel workings for the pending and wrote a letter to the department of about his E-Payment. similarly it took 6 working days and department has removed the cancellation and allowed to file the GSTR-1 and GSTR-3B.
For answering your quirey: 1. I think it is not correct to issue invoice based on Cancelled registration better revoke it first. 2. Please check with Login if Payment is allowed . please do & file the returns
28 August 2020
Thanks Bhavya Maam..will check with Login as advised from your side, One thing is not clear from your answer ma'am, whether the department allowed the credit your company had taken because that credit was based on an invoice from an UN registered Dealer ( Cause since suo moto cancellation the registered dealer becomes technically unregistered till he gives a letter for revocation.),Secondly whether the department allowed the supplier o make payment and file returns, i asked this because normally the department will be taking the due course only na ma'am, if they had given notice wide form reg 21, the dealer had to give letter for revocation.
28 August 2020
Dear Sir, The Credit was allowed because the due dates of GSTR-1 were extended also for GSTR-9 of 2017-18 from the supplier also we didnt ask whether he got the notice or not but he showed the Payment challans and also returns were filed within 2 weeks time.
CAclubindia
