Dear readers, after the passage of Second wave of COVID-19, now Indian economy is on the track of recovery. But lockdown imposed during COVID -19, hits the MSME Sector very badly. Many sectors are still straggling to recover from the impact of lockdown. MSME Sectors is still struggling to manage cash flows. Due to shortage of cash/ monetary liquidity many GST registered dealers are not able to comply with GST law requirements and they are not able to file GST returns on time, due to this reason there GST registration has been cancelled. Now, they want to start there business again and want to activate there cancelled GST Registration. In this article, we will discuss about the reasons due to which GST Registration of dealer can be cancelled and how the same can be activated after Suo Moto cancellation.
GST Registration cancellation process is governed by Section 29 of CGST Act, 2017. As per Section 29 (2), in the below circumstances, GST Officer has the power to cancel GST Registration of dealer Suo Moto.
The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where, ––
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
(d) 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; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.
In practical situation, the GST Officer issues show cause Notice for Suo Moto GST registration cancellation and the assessee is required to submit his reply within specified time period. If no response is received or officer is not satisfied with the dealers reply then he cancels the GST Registration.
After GST Cancellation, Section 30 of CGST Act, 2017 gives an opportunity to registered dealer to apply for GST Revocation request within 30 days from the date of service of cancellation order. (However, as on date, GST Portal is accepting GST Revocation request within 90 days of service of GST Cancellation order.)
From above it is clear that, after Suo Moto GST Cancellation, the dealer has to approach the GST officer for revocation of GST Registration within prescribed time period.
Query: I am not able to file GST Revocation request within specified time period. Whether I have any other opportunity left to activate my cancelled GST Registration?
Query: My GST Registration has been cancelled, whether I can apply for new GST Registration on same PAN?
You have the option to apply for new GST registration, however its approval by GST Officer will be according to the circular issued in 2019.
Query: My GST Registration has been cancelled. Whether I can issue GST Invoice to my Customers?
When GST Registration has been cancelled by department, then issuance of GST Invoice is not allowed.
Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers.
The Author “CA. Shiv Kumar Sharma” can be reached at mail –[email protected] and Mobile/Whatsapp – 9911303737/ 9716118384