Introduction to GST- Section 63- Assessment of Unregistered Persons
-Section 63 of CGST Act, 2017 is applicable to unregistered persons i.e., persons who are liable to obtain registration under Section 22 and have failed to obtain registration, will come within scope of operation of this section.
-This provision also covers cases where registration was cancelled under section 29(2).
♦ Taxable person
-All ingredients to establish a person to constitute ‘taxable person’ as per section 2(107) must be satisfied. In the absence of SCN, Proper Officer appears to come under great scrutiny for invoking this jurisdiction.
♦ Fails to obtain registration
– ‘Fail’ is not the same as ‘omits’ to obtain registration. Clearly, being conscious of the requirement to obtain registration will be required.
♦ Registration cancelled but liable to pay tax.
– It is not taxable person’s responsibility, If registration is cancelled by Proper officer as per section-29(2), and then proceeds to invoke Best Judgment order under section-63. It would be appropriate that proper officer “Suspends” registration instead of cancelling the registration.