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.

Why Registered person approach for New registration instead of Revocation of cancelled one

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.

Circular no. 95/14/2019-GST dated 28th March, 2019

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 –

  • Whether existing registration continues or is being cancelled;
  • If the existing registration is cancelled, then it would be analyzed whether the registration is cancelled on account of violation of provisions i.e. non filing of returns;
  • If the registration is cancelled, whether the tax payer has opted/ filed application for revocation of cancellation of registration.

Consequences

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. 

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Qualification: CA in Practice
Company: Chartered Tax Advisors
Location: New Delhi, New Delhi, IN
Member Since: 21 Sep 2019 | Total Posts: 2

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4 Comments

  1. Pardeep Goyal says:

    We have built Godown building under PEG scheme and rented to Pungrain/Fci for storage of rice,wheat under ten years guarantee base. Is the rent recived is attract GST or exempted.

    1. jainnk0210 says:

      If the service provided by the vendor/lessor is in the nature of renting of immovable
      property for commercial purpose (other than vacant land in relation to agricultural produce), the said lessor would charge GST @ 18%.

      Further, If the service provided by the vendor/lessor is in the nature of storage/warehousing of food grains, pulses, rice, the said services would not attract any levy of GST.

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