FAQs on Suo Moto Cancellation of GST registration
Q.1 Under which circumstances can a Tax Official initiate for cancellation of GST registration?
Ans: Suo Moto Cancellation of registration may be initiated by the Tax Official for various situations as mentioned in the provisions of GST law like: –
- Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months
- Supplies any goods and / or services without issue of any invoice, in violation of the provisions of the Act or rules made thereunder, with the intention to evade tax
- Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax
- Collects any amount as representing the tax but fails to pay the same to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
- Fails to pay any amount of tax, interest or penalty to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due
- Person is no longer liable to deduct tax at source as per the provisions of GST Law
- Person is no longer liable to collect tax at source as per the provisions of GST Law
- Person no longer required to be registered under provisions of GST Law
- GST Practitioner is found guilty of misconduct in connection with any proceeding under the GST Law.
- Discontinuation/Closure of Business
- Change in Constitution leading to change in PAN
- Ceased to be liable to pay tax
- Transfer of business on account of amalgamation, merger/demerger, sale, lease or otherwise disposed of etc.
- Death of Sole Proprietor
- Composition person has not furnished returns for three consecutive tax periods,
- Registration has been obtained by means of fraud, willful misstatement or suppression of facts. Etc.
Q.2 Will I be intimated before the Suo Moto Cancellation of Registration?
Ans: Yes. Registration cannot be cancelled without a Show Sause Notice being given to taxpayer and a reasonable opportunity of being heard by the Tax Official. Thus, in case of Suo Moto cancellation of registration, a Show Sause Notice shall be issued by the Tax Official/ Proper officer to the taxpayer and taxpayer would be given a chance to file clarifications in the stipulated time limit.
Q.3 What is the precondition for Suo Moto Cancellation of Registration?
Ans: There must be a valid reason for initiation of proceeding for Suo moto cancellation as specified under Section 29(2) of the CGST/SGST Act.
Q.4 What is the duration within which I need to file a response for Show Cause Notice regarding Suo Moto Cancellation of Registration?
Ans: You need to provide response within the prescribed time limit of 7 working days’ time to file reply to the Show Cause Notice (SCN) using the Services > Registration > Application for Filing Clarifications link. If no response is given within prescribed 7 working days, the Tax Official can proceed with Cancellation of registration.
Q.5 What will happen once Show Cause Notice is Dropped?
Ans: In case the Tax Official is satisfied with the response received from the taxpayer, on the Show Cause Notice issued, the proceedings can be dropped.
a. Primary Authorized Signatory will be intimated about dropping of SCN by SMS & Email.
b. Issuance of Order for dropping of SCN will also be intimated to the Primary Authorized Signatory by Email and SMS.
c. Order will be made available on the taxpayer’s dashboard to view, print and download.
d. Status of GSTIN will change from “Proceeding for Cancellation Initiated” to “Active”.
Q.6 What shall be the effective date of cancellation of registration?
Ans: Effective date of cancellation will be the date as mentioned in the cancellation order.
Q.7 Will the cancellation of registration means that I have no liabilities?
Ans: No, any liabilities prior to the date of suo moto cancellation will have to be paid by the taxpayer, irrespective of the fact that when determination of liabilities are done.
Any liability which is related to that particular GSTIN is required to be paid by the taxpayer. It can be recovered later on even after the cancellation of GSTIN.
Q.8 Will the Suo moto Cancellation of registration be proceeded separately for each act?
Ans: Cancellation of registration under the CGST Act or SGST/UTGST or IGST Act shall be deemed to be a cancellation of registration under SGST Act / UTGST Act or CGST Act respectively and vice versa.
Q.9 What will happen once Registration is cancelled?
Ans: a) Once registration is cancelled by the Tax Authority, the taxpayer will be intimated about the same via SMS and Email. Order for Cancellation of Registration will be issued and intimated to the Primary Authorized Signatory by Email and SMS.
b) Order will be made available on taxpayer’s dashboard to view, print and download.
c) Status of the GSTIN/UIN/GSTP ID from ‘Proceeding for Cancellation initiated’ to ‘Inactive’ and will be intimated to the other concerned Tax Authority.
d) Taxpayer would not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions for any Taxpayer for the period after the date of cancellation mentioned in the cancellation order.
e) Taxpayer will not be able to amend registration details after issuance of cancellation order. However, email address and mobile number can be updated till dues/ refund are cleared. The facility to file application for revocation (if applicable) will be open for the Cancelled Registration.
Q.10 Will I be able to login after suo moto cancellation of registration?
Ans: Yes, you can login to the GST Portal after suo moto cancellation of registration.
Q.11 Can I update my email and mobile after suo moto cancellation of registration?
Ans: You will not be able to amend registration after issuance of cancellation order.
However, email address and mobile number can be updated till dues/ refund are cleared.
Q.12 Can I submit returns of the earlier period after suo moto cancellation of registration?
Ans: You can submit returns of the earlier period (i.e. for the period before date of cancellation mentioned in the cancellation order), after suo moto cancellation of registration. However, you will not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GSTP will not be able to carry out GSTP functions on your behalf for the period after the date of cancellation mentioned in the cancellation order.
Q.13 Where can I view the Show Cause Notice regarding Suo Moto Cancellation of Registration?
Ans: Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration.
To know more, you can refer the manual https://tutorial.gst.gov.in/userguide/taxpayersdashboard/index.htm#t=View_Notices_and_Demand_Orders.htm
Q.14 How can I reply to the Show Cause Notice regarding Suo Moto Cancellation of Registration?
Ans: Navigate to Services > Registration> Application for Filing Clarifications to reply to the Show Cause Notice regarding Suo Moto Cancellation of Registration.
To know more, you can refer the manual https://tutorial.gst.gov.in/userguide/registration/index.htm#t=Application_for_Filing_Clarification.htm
Q.15 Where can I view the date for personal hearing regarding Suo Moto Cancellation of Registration?
Ans: Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice regarding Suo Moto Cancellation of Registration. Download the notice to view the personal hearing date.
To know more, you can refer the manual https://tutorial.gst.gov.in/userguide/taxpayersdashboard/index.htm#t=View_Notices_and_Demand_Orders.htm
Q.16 Where can I view the order regarding Suo Moto Cancellation of Registration?
Ans: Navigate to Services > User Services > View Notices and Orders to view the order regarding Suo Moto Cancellation of Registration.
To know more, you can refer the manual https://tutorial.gst.gov.in/userguide/taxpayersdashboard/index.htm#t=View_Notices_and_Demand_Orders.htm
Q.17 Can I submit application for cancellation of registration, in case Tax Official has already initiated the suo-moto cancellation of Registration?
Ans: No, you cannot submit application for cancellation of registration, in case Tax Official has already initiated suo-moto cancellation of your Registration.
How to Download GST Notices and Demand Orders
(Republished with amendments)
****
Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
I have recd suo moto notice in which mentioned this : issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax
In this case what should be done
We have volunteerly took GST number but not filed returns from 2018-2021 due to some reasons and under suo-moto number got cancelled in 2020.
Can we revocate it by clearing taxes before cancellation period i.e before 2020?
As we have not collected any gst from our customers after suo-moto cancellation.
Please suggest.
i didn’t fill return 2018 to 2021 my Gst number cancel
give suggestion
My Gst registration is already cancelled in Suo Moto from Jan 2021 , I have paid returns till Dec 2020 , if I leave as it is with out revocation, do I get any problem in future from gst officer .
Note : I have made one transition in August 2020 I have paid late fees , do I need to pay interest amount ?
If I leave as it is ,is that okay ?
Pls suggest
If GST IN number is cancelled suo-motto due to not filing of return and in notice order there is no dues pending . In this case can i apply for new GST Registeration number on same PAN number basis ?
If my GSTIN is cancelled suo-motto due to not filing of return and in notice order there is no dues pending . In this case can i apply for new GST Registeration number on same PAN number basis ?
Can I please get reply to Surendra kumar’s question
Good morning,
My GST registration was suspended due to non deposit of interest on time. My consultant filed an application for revocation. But now The same registration has been cancelled. I have filed an application for Revocation of Cancellation. However, The application is not appearing in officer’s dashboard and therefore not able to process the same. In my GST web page it still shows pending for processing. Officers say it is a software glitch. Because of pending application, I cannot file another application.
Kindly advise,
Thank you
Govt websites do not work. Try IEC. I have been for months. Website says Error after last step. Passport is under process for mare than 1 year now
If taxpayer received duo Moto cancellation notice on 1 Jan and he clarifies it on 10 jan. Is he eligible to issue GST TAX INVOICES for the same period.
Sir
Suo moto cancellation notice me
My registration gst number is cancelled.
However or it is mandatory return to gst
Imy number get cancelled in suno moto notice and I m in process to file pending. Just want to know whether I continue my purchase on GST number in suno moto cancellation period?
Ref: FAQs on Suo Motu Cancellation of GST registration
Comment
NOT A FAQ included in the above List; but nonetheless requiring an answer to be explored to the hilt and diligently found:
1. Does that not sound like, – getting caught in a wrongly entered One-way traffic road or in a blind allay?
Unlike ‘PAN’- once applied for and GSTN be allotted to a person , especially if the person knows full well that he has an extremely good case to contest the levy itself, should he , going by diktats of common sense and prudence, decide not to apply for registration ?
Would he not, – if he does so, – impudently on own or under a professional’s ill-considered advice, – get stuck; as if caught in a blind alley?
In this context, does not (?) one require to keep in focus, the basic distinction between PAN under the IT Act and GSTN under the GST code, as indicated below?
As mandated by law, unlike GSTN, PAN is required to be compulsorily applied for even by a person who has no taxable income but needs to hold one for several other purposes – e.g. for opening and holding a bank account as per the RBI regulations ?
To say it differently, though holding a PAN for the other purposes, he is not obliged to file a tax return voluntarily; except in a case in which, in terms of sec 139, he has to file a tax return only for claiming a refund TDS wrongly deducted .
Would that not precisely be the situation in the case of a RWA (housing association) claiming- NO TAX to pay- by virtue of the overriding common law ‘principle of mutuality ‘- unlike / as opposed to claim of NO TAX by virtue of any provision in the TT Act itself.
This is intended to serve the purpose of a supplement to better appreciation of the comments earlier posted elsewhere, say @ https://taxguru.in/goods-and-service-tax/gst-applicable-housing-scocieties.html
courtesy
OVER To>>>>>
Dear Sir,
We were issued SCN on 17.01.2020 for no filing of returns for 6 months. We give a reply offline and submitted the returns till Dec ’19. We have received a suo moto cancellation notice yesterday after 6 months .Whay should we do?
I have filled nil return for last six months
Can my registration can be cancelled suo moto
I have excess amount in cash and input ledger Will I get refund for this
I have applied for cancellations one year back on 2019 June, till today no steps taken against my application, as from the date I business I am filling nil return, asked tax officer about the issue, they say my ARN not showing to them, even after 1 year they can’t find resolution, can I stop gst filing so that they cancel my registration, and is there will be any chance for penalty, as even for there I won’t made any outward inward,
Please help, no one helping me..
i want to cancel my gstin but its showing suo moto cancellation initiated but gstin is active How should I cancel
If registration is cancelled, late fee is levied on pending returns(for non-filers of return), in the order or will be collected later by the department?
GIVE SUGGESTION OF CANCELLED REGISTRATION FOR REVOCATION AND THE DEALER HAS TO CONTINUE HIS BUSINESS SHALL HE MOVE FOR NEW REGISTRATION
is there any possibility of revoke the cancelled registration under suo moto cancellation