Form GST REG-20 is an order issued by the proper officer dropping the cancellation of GST registration. Issuance of order in Form GST REG-20 is governed by the provisions of rule 22(4) of the Central Goods and Services Tax Rules, 2017.

The current article briefly explains the initiation of cancellation proceedings by the proper officer; filing of a reply by the taxable person against the cancellation proceedings and issuance of order dropping cancellation of GST registration by the proper officer.

Initiation of the cancellation proceedings by the proper officer-

Section 29(2) of the Central Goods and Services Tax Act, 2017 lays down the circumstances under which the proper officer can initiate the cancellation proceedings. The said circumstances are listed hereunder-

1. The taxable person registered under the composition scheme has not furnished applicable returns for consecutive three periods.

2. The taxable person, other than composition scheme dealer, has not furnished applicable GST returns for consecutive six periods.

3. The taxable person has contravened any of the provisions of the Central Goods and Services Tax Act, 2017 and rules made thereunder.

4. The taxable person has voluntarily obtained GST registration, however, has not commenced the business within a period of six months of the date of registration.

5. The taxable person has fraudulently obtained GST registration.

Cancellation of GST registration can be initiated by the proper officer on the occurrence of any of the above situation. As and when the proper officer has a reason to believe that the GST registration of the taxable person is liable to be cancelled, he is first required to issue a notice in Form GST REG-17.

Filing of reply by the taxable person-

The taxable person, being aggrieved with the notice issued by the proper officer, is required to file an appropriate reply. Such reply is to be filed in Form GST REG-18. Notably, the reply is to be filed within a period of seven working days from the date of service of notice.

Dropping of cancellation proceedings by issuing an order in Form GST REG-20-

The reply submitted by the taxable person in Form GST REG-18 will be verified by the proper officer. After verification, if satisfied, the proper officer will drop the cancellation proceedings. Accordingly, the proper officer will issue an order in Form GST REG-20 informing the dropping of cancellation proceedings to the taxable person. Order in Form GST REG-20 contains following details-

1. Reference Number and date,

2. Show cause notice number and date,

3. Reasons based on which the cancellation proceedings are dropped.

Once the order in Form GST REG-20 is received by the taxable person, the cancellation proceedings will be marked as dropped. Accordingly, the taxable person will be required to follow all the rules and regulations framed under the Central Goods and Services Tax Act, 2017 and rules made thereunder.

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November 2020