Verification: New GST Registration after Cancellation of earlier(old) Registration – By CA Nitin Jain
a very important clarification is came vide Circular no. 95/14/2019-GST dated 28th March, 2019 from Central Board of Indirect Taxes and Customs is being summarized in the present article.
Many cases are came to knowledge of department wherein, new GST registration have been applied after cancelling the old one or earlier GST registration within the same state. after analysis the application, facts came to know that registration was cancelled on account of non filing of GST returns or statutory requirements are not complied with and to save old tax/interest/penalty liability, applied for new GST registration.
If applied for revocation of GST registration after cancellation of GST registration on account of non-compliance of the statutory provisions, would be required to pay all the pending tax/penalty/interest liabilities. thus, in order to avoid payment of pending Tax/Interest/Penalty liabilities, registered person choose to take new GST registration instead of revocation of cancelled registration.
Vide circular no. 95/14/2019-GST dated 28th March, 2019, the Central Board of Indirect Taxes and Customs has clarified the consequence the tax payer has to face in case of non-revocation of cancelled registration and applying for new registration which is being summarized in the present article.
Checking of New Registration Application
if the tax payer already having one registration, applies for another registration within the same state, the proper officer would undertake the following analysis –
In case there is a cancellation of registration and the tax payer has not applied for revocation of cancellation of registration and conditions of non filing of returns are still continues, then, it shall be deemed to be a ‘deficiency’ within the meaning of rule 9 (2) of the Central Goods and Service Tax Rules, 2017 and the proper officer may consider the same as a ground for rejection of application for fresh registration.
Thus, in the coming days, taxpayers who have not complied with GST return filing regulations, will find it extremely hard to obtain GST registration again.