Through the Central Goods and Services Tax (Second Amendment) Rules, 2024, the Central Board of Indirect Taxes and Customs (CBIC), has introduced amendments in the process pertinent to the cancellation and suspension of GST registration. Such amendment has the objective of improving compliance and facilitating the procedure for the assessees and authorities.
Amendment Highlights
Rule 21 Amendment: Under Rule 21 the provisions for the suspensions of GST registration cover the non-filing of returns for 6 successive months for regular assessees, or two tax periods for composition taxpayers. The same assures tight compliance and filing the returns on time.
FORM GST REG-31 Introduction: A SCN under FORM GST REG-31 would be received by taxpayers who are not able to adhere to particular provisions like non-submission of bank account details within 30 days of obtaining GST registration. The same notice permits the assessees to elaborate on their non-compliance before any measures is opted.
FORM GST REG-20: When the GST authorities wished to close the proceedings started for the cancellation of registration the same form was furnished. The same form would get furnished once the assessees furnishes reasons or rectifies the problems that are directed to the cancellation notice.
Suspension of GST Registration: The new regulations specify that the GST registration suspension could be triggered if discrepancies or mismatches are discovered between the returns furnished in FORM GSTR-1 and FORM GSTR-3B. To prevent suspension the assessee would be needed to address such discrepancies.
