What to do If GST Registration is Cancelled via Suo Moto?

Once GST registration has been received, the same cannot be revoked unless the assessee applied voluntarily against it or the GST authorities cancelled the same for some reason.

If the GST registration is cancelled by the GST authorities, the same would get specified on the GST portal as Suo Moto cancelled. One is not able to submit an application for cancellation of registration if the Tax Officer has already started Suo Moto cancellation of a specific GST registration.

57th GST Council Meeting Updates

• The 57th GST Council meeting suggested suo-motu GST registration cancellation and revocation through a system-based procedure to reduce manual intervention by tax officers and improve overall transparency for users. Read Press Release

Suo moto cancellation of GST registration shows that the assessee is not a GST-registered individual, and his GSTIN would indeed become inactive.

As per that, the assessee could not furnish the taxes, claim ITC, and indeed acknowledge doing the business without the GSTIN, which draws much more penalties.

Moreover, the GST department issues the notices through the ASMT-10 to the buyer from the suo-moto cancelled enrollment towards reversing the Input Tax Credit claimed based on non-filing of GSTR-3B returns.

Reasons for Suo Moto Cancellation of GST Registration via Authorities

Suo moto cancellation of registration might be executed by a tax officer for distinct circumstances as specified in the GST law, and is mentioned below:

• Any assessee, excluding the composition assessee, does not furnish the returns for a straight duration of 6 months.
• Supplying any goods or services, no notice is required for revoking the provisions of the Act made under it with the purpose of evading the tax.
• Issuing any invoice or bill with no supply of goods or services in breach of the provisions of the Act, or the regulations made under it, renders an illegal claim or use of input tax credit or tax refund.
• Collects any amount as designating the tax while failing to pay it to the account of the Central or State Government above the duration of 3 months from the date on which the same payment is due.
• Fails to file any tax amount, interest, or penalty to the account of the Central or state government above the duration of 3 months from the date on which these types of payments become due.
• An individual would no longer be responsible for collecting tax at the source under the GST law.
• The practitioner of GST would be found guilty of misconduct, liable in any proceeding under the GST Law.
• Discontinuation/Closure of Business
• An individual would no longer be responsible for deducting tax at source under the GST law.
• Quit being responsible for filing the taxes.
• Business transfer based on amalgamation, merger/demerger, sale, lease, or otherwise disposed of, and others.
• Revision in Constitution leading to change in PAN
• Registration would be received through fraud, willful misstatement, or suppression of facts and others.
• Death of Sole Proprietor
• The composition individual did not file the returns for 3 successive tax periods.

Removal Order for Suo Moto Cancellation of GST Registration

There should be a proper reason for the start of rolling for Suo Moto cancellation as mentioned under Section 29(2) of the CGST/SGST Act, and Goods and Services Tax registration could not be cancelled without issuing a show cause notice to the assessee and the proper chance of being heard via tax officer.

Hence, a show cause notice would be given by the tax officer to the assessee in the case of Suo-moto cancellation of enrollment, and the assessee will be provided with an opportunity to furnish the clarifications within the specified duration.

To answer the show cause notice furnished to the assessee would be needed to furnish an answer within the mentioned time duration of seven working days to furnish an answer to the show cause notice (SCN) through the services > Registration > Application for Filing Clarifications link. If no answer is provided within 7 working days, then the tax officer could proceed with the revocation of registration.

If the proper officer is satisfied with the reply obtained from the assessee on the show cause notice furnished, proceedings would be withdrawn, and the assessee would carry on with the existing GSTIN advantages.

In order to drop the SCN, the main Authorised Signatory would be intimated via SMS and email; indeed, the order copy would be made available on the assessee’s dashboard to view, print, and download. As per that, the status of GSTIN would get amended from “Suspended” to “Active”.

Cancellation of GST Registration via Officer

If the proper officer is not satisfied with the submission, then he would give the revocation order, effective from that date. The revocation of the enrollment under the CGST Act or SGST/UTGST or IGST Act would be deemed to be a revocation of the registration under the SGST Act / UTGST Act or CGST Act, correspondingly and vice versa.

The assessee can see that via Navigate to Services > User Services > View Notices and Orders to view the Show Cause Notice for the Suo Moto revocation of Registration.

Once the registration is revoked by the tax authority, the assessee will be informed through SMS and email. Cancellation of GST Registration order shall be issued and intimated to the Primary Authorised Signatory through Email and SMS. The Order would be available on the taxpayer’s dashboard to view, print and download.

The status of the GSTIN/UIN/GSTP ID through ‘Proceeding for Revocation started’ to ‘Inactive’ and will be intimated to the other related Tax Authority.

The assessee shall not be permitted to furnish the return or upload the invoices for the duration after the cancellation date specified in the order of cancellation. Indeed, GSTP would be unable to perform the GSTP operation for any assessee for the duration after the cancellation date specified in the order of cancellation.

The assessee would not be enabled to revise the information of the registration after the cancellation order is issued. But the email address and mobile number could be updated till refunds are cleared. Filing the application utility for the revocation (if applicable) will be open for the Cancelled Registration.

Steps to Activate Suo Moto GST Registration

It is essential to note that if they get cancelled, any liabilities before the date of Suo-moto cancellation would need to be paid by the assessee, regardless of when the finding of the liabilities would be completed.

An assessee would be mandated to pay any liability concerned with that specific GSTIN. The same could be retrieved later on, even after the GSTIN cancellation.

The assessee could log in to the GST portal after the Suo moto cancellation of the registration and could submit the return for the former duration (for the duration prior to the date of the cancellation specified in the cancellation order) after the Suo moto cancellation of the registration.

But you would not be permitted to furnish the return or upload the invoices for the duration post-cancellation date as specified in the order of cancellation. Indeed, GSTP would not be enabled to take the GSTP processes on your behalf for the time period post the cancellation date specified in the order of cancellation.

Procedure to Activate Cancelled GST Registration via Suo Moto

• Proceed to the GST Portal.
• Insert the GST login credentials.
• Proceed to the Dashboard and choose the services. Under the services section, tap on registration, and under the registration section, choose the application for revocation of cancelled registration option.
• Insert the revocation reasons and attach the required documents. (The assessee needs to finish the GST Return Filing process if the GST Registration was cancelled because of non-compliance)
• Choose the authorised signatory and “Submit” the application.
• The order of withdrawing the cancellation shall be processed by the officer if he is satisfied with the justification of the assessee.
• The corresponding GST officer would be performing the same within 30 days from the application date for revoking the registration. The competent officer should sign an order in FORM GST REG-22 revoking the GST registration cancellation.
• Once the same has been performed, the assessee would be regarded as an active assessee, and all the access furnished to the active taxpayers on the GST Portal will be enabled instantly.
• As per that, the registration certificate and profile of the taxpayer will be updated.