Question: GST registration is already cancelled in Suo Moto from 1st March 2021, Client have filled returns till February 2021, if he leave as it is with out revocation, does he get any notice in future from GSTN & What to do in case of sue moto cancellation of registration.
Pls suggest what client have to do
As Per My View
In The Given Case Registration is cancelled by proper office.
If you want to continue your Business than you can apply for Revocation U/s 30(1) within 30 Day from cancellation order provided additional Comm. can extend by 30 days or Comm. Can extend by more 30 days
As per Rule 23(1)
Provided that no application for revocation shall be filed, if the registration has been cancelled for the failure of the registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns, has been paid along
with any amount payable towards interest, penalty and late fee in respect of the said returns:
[Provided further that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration:
Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration.
but If you do not want to continue your business than as per Sec 29(5) you should pay arrears of any tax, interest or penalty Including ITC taken on Input Stock, on capital goods & any other ITC taken & As per Rule 22(3) Registration will be cancel with effect from date to be determined by him & notify the taxable person, directing him to pay amount U/s 29(5).
In the given case officer can Issue notice & Assess Under Sec 63
Notwithstanding anything to the contrary contained in section 73 or section 74, where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under sub-section (2) of section 29 but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates:
Provided that no such assessment order shall be passed without giving the person an opportunity of being heard.
If return is not filled U/s 39-GSTR 3B, 44 – Annual Return, 45 – Final Return Then Notice U/S 46 Can Issue & After Than Assessment Can Be Done U/s 62 for non Filers of Returns Within 5 years From Date of Specified U/s 44 for furnishing of the annual return for the financial year to which the tax not paid relates.
As per my View
If you want to continue your business than you should apply for revocation as early as possible & If You do not want to continue your business than you should fill Final return U/s 45 Within 3 months of the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as may be prescribed. (Rule 81)
My View What to do in case of Sue moto Cancellation of Registration by Proper Officer.
You have two Option
1. You can direct file Final return U/S 45 within 3 month of the date of cancellation or date of order of cancellation, whichever is later.
2. You can firstly file revocation of cancellation U/S 30. and after that you file all return U/S 37 & 39 up to date of cancellation and after that apply for cancellation
I suggest you should take Second option because in that case if you want to take new registration on same PAN than You get easily new registration in compare of sue moto cancellation and if in near future sec 149 Goods and services tax compliance rating will invoke than also your rating will not affected in compare of sue moto cancellation.
Thanks for Your Precious Time
Disclaimer: – This is my view. So please take your decision with your CA/Advocate