Recently, the proper officer cancelled many registrations under the provisions of sub-section (2) of section 29 of the CGST (Central Goods and Services Tax) Act, 2017 read with rule 21 of the CGST Rules, 2017 due to non-compliance with the statutory provisions. Even after knowing these many examples have shown up like there are still such persons who continue the business and are registered under the GST but are not cancelling the registration as per the Section 30 of the CGST Act read with CGST Rules i.e. rule 23.
Instead of cancelling the GST registration, they are applying for the new registration. It is possible that such new applications have been made for persons who might have not issued requisite returns and also might have not paid any tax under the tax period which was covered under the cancelled or old registration. And later if they apply for the non-cancellation of registration, then they have to mandatorily clear all the dues of the relevant period.
Therefore, for avoiding the payment of the GST taxes, the person chooses the path of applying for new and fresh registration. Note that, with the same PAN, a person can issue separate registration in the same State and this can be done according to the provisions under the sub-section (2) of section 25 of the CGST Act.
Also note that the applicant either have to provide sufficient convincing justification or must convince the proper officer from the clarification, information or documents issued. If it is done, then his application for the fresh registration will be approved or else will be rejected.
