Dear friends, as we all know, now GST Department is taking very strict action against GST Defaulters. Now a days, GST Department has caught many persons for issuing fake GST Credit invoices. And GST Credit of all dealers who has taken credit of GST Input on the basis of fake Invoices has been blocked.

As per new published in today’s Economic times, GST Registration of 1,63,042 dealers has been Suo Moto cancelled by GST Department in the Month of October and November due to non- filing of GSTR-3B returns for more than 6 Months. After the introduction of GST Law in India, GST Department has launched Amenity scheme twice to regularise all GST Defaulters, so that they can file their pending GST returns and become the part of main stream of GST registered dealers, however, due to ignorance of this scheme many dealers are not able to avail this opportunity and now GST department has started the cancellation of their GST Registration Suo- Moto.

As we all know, at the time of GST Registration application, now Aadhar Verification is made mandatory, if you want your GST Application will be approved within 3 working days. If you fail to verify GST Registration application through Aadhar Verification then a separate process has been described by GST Department in which deemed GST Registration will be allotted after 21 working days instead of 3 working days.

As per news, out of 720 deemed registrations granted between August 21 and November 16, where Aadhaar authentication was not done, 55 deemed registrations have been identified for discrepancy and the process of cancellation was initiated. From above discussion, it can be concluded that, it will be very difficult to run business for all those dealers which are not following GST Act, rules and regulation with due care.

In this article, we will discuss about the circumstances in which GST Registration can be cancelled Suo-Motto by department.

1. In which conditions GST Officer has power to Suo Motto GST Cancellation?

Section 29 (2) of CGST Act, 2017 empowers, GST officer to 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 (i.e Composition levy) has not furnished returns for 3 consecutive tax periods; or

(c) any registered person, other than composition registered dealer who has not furnished returns for a continuous period of 6 months; or

(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within 6 months from the date of registration (i.e filing Nil GST Returns); or

(e) registration has been obtained by means of fraud, willful 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 today’s scenario, reasons for cancellation of GST Registration of maximum dealers are due to conditions specified in clause (c), (d) and (e) above.

2.  Whether a GST Officer can directly cancel my GST Registration?

No, before cancellation of GST Registration, GST Officer is under obligation to issue a show-cause notice in Form GST REG-17, specifying the reason why, GST registration should not be cancelled and registered dealer has to reply for the same within the specified time period. 

Please note that, if any registered dealer received any notice from department, then he must reply for the same within specified time period. After the lapse of specified time period, you will not be able to submit any online reply against this notice. 

3. If I receive Show cause notice for Suo Moto GST Cancellation, then what I have to do? 

After receipt of show cause notice for GST Cancellation, the dealer must correct the error due to which show cause notice is issued. After correction of the same, the dealer must submit his reply online communication to the officer that specified error/discrepancy has been resolved and further proceeding related to this Suo Motto GST Registration cancellation should be dropped by proper officer. 

4. Even after submission of my reply or I am not able to submit reply within specified period and my GST Registration has been Suo Moto Cancelled by Proper officer, then what I have to do now?

If your GST Registration has been cancelled by Officer, then you have the option to file revocation request against this order within 30 days. 

5. I am GST Registered person and my GST has been Suo Moto cancelled by Officer, I have applied for GST Revocation request few months back when Amenity scheme for GST Return late fee is in force but my GST has been revocated by GST Officer when GST return late fee waiver scheme is over, now when I am filing my pending GST Returns, system is forcing to pay GST Late fee, now what should I do in this case. 

 In this case, dealer has no option left, as the GST Amenity scheme is over, then dealer has to pay late fee on all pending GST Returns. 

6. My GST Registration has been Suo- Moto Cancelled by GST Officer, can I go for new GST Registration 

As explained above in this article, now GST Registration process is very difficult in comparison to earlier process. If you apply for new GST Registration then GST officers are instructing to file GST revocation request for earlier GST Registration instead of applying for new GST Registration 

Conclusion: It is in the benefit of all GST Registered persons that, to avoid such kind of litigation, they must follow all rules and regulation as prescribed by GST Act. 


This article is for the purpose of information and shall not be treated as a solicitation in any manner and for any other purpose whatsoever. It shall not be used as a legal opinion and not be used for rendering any professional advice. This article is written on the basis of the author’s personal experience and provision applicable as on the 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 other readers.

The Author “CA. Shiv Kumar Sharma” can be reached at mail [email protected] and Mobile/Whatsapp – 9911303737/ 9716118384

Author Bio

Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, New Delhi, IN
Member Since: 03 Dec 2018 | Total Posts: 47
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. I have Qualified my B.Com (H) in 2010 And Cleared CS- Executive Exam in June 2013. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. View Full Profile

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    Dear Sir,
    I want to know one thing what will be the impact of late gst returns filling in income tax. is there is a scrutiny chances.

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January 2021