The provisions of section 25(8) of the Central Goods and Services Tax Act, 2017 empowers the proper officer to Suo-moto register the person who is liable to obtain GST registration, however, fails to obtain the same. Order granting such Suo-moto registration is issued by the proper officer in Form GST REG-12.
The procedure for Suo-moto registration and issuance of an order in Form GST REG-12 is prescribed under rule 16 of the Central Goods and Services Tax Act, 2017. The present article covers the entire provisions surrounding the Suo-moto registration.
As per rule 16(1), Suo-moto registration by the proper officer is possible only when both the below conditions are satisfied-
Condition 1 – The proper officer has conducted any survey, inspection, search, enquiry or any other proceedings under the Central Goods and Services Tax Act, 2017; and
Condition 2 – During any of the above action, the proper officer finds that the person is liable to obtain GST registration. However, the person has failed to obtain the GST registration.
If both the above conditions are satisfied, the proper officer can Suo-moto register the person on a temporary basis. Accordingly, the proper officer will issue an order in Form GST REG-12.
It is important to note that the temporary registration shall be effective from the date of issuance of an order in Form GST REG-12.
The person to whom temporary registration order is issued in Form GST REG-12 can take any of the following action-
Action 1 – The person can file an application for GST registration within a period of 90 days from the date of grant of temporary registration; or
Action 2 – The person can file an appeal against the order issuing the temporary registration.
Notably, in case the person has filed an appeal, however, the appellate authority upholds the requirement of registration. Then, the person needs to file an application for registration within a period of thirty days from the date of issuance of appellate authority order.
Other important points-