Cancellation of GST registration is a serious matter and it cannot be done without proper explanation. As per the GST laws, the proper officer can cancel the GST registration of a registered person only after giving them an opportunity of being heard.
The proper officer can initiate cancellation proceedings on various grounds such as non-filing of returns, non-compliance of provisions, suppression of facts, or if the business is not operating at the registered address. However, the proper officer has to provide the registered person with an opportunity to explain their position and to produce relevant documents before initiating the cancellation proceedings.
If the proper officer cancels the GST registration without following the due process of law, it can be challenged before the appropriate appellate authority. Therefore, it is important for the proper officer to follow the prescribed procedure before cancelling the GST registration of a registered person to ensure that the cancellation is legally sustainable.
In addition to the above, it is important to note that the GST laws provide for a clear procedure for cancellation of GST registration. The proper officer can cancel the GST registration of a registered person only after following the due process of law.
The proper officer has to issue a show-cause notice to the registered person, giving them a reasonable opportunity to explain their position. The registered person has to respond to the show-cause notice within the specified time period and provide all the relevant documents and information to substantiate their position.
Based on the response of the registered person, the proper officer has to pass a reasoned order either accepting or rejecting the explanation. If the proper officer is not satisfied with the explanation, they can cancel the GST registration of the registered person.
However, if the registered person is not satisfied with the order of cancellation of GST registration, they have the right to file an appeal before the appropriate appellate authority. The appellate authority will then consider the matter and pass an order based on the facts and circumstances of the case.
Therefore, it is important for the proper officer to follow the prescribed procedure before cancelling the GST registration of a registered person to ensure that the cancellation is legally sustainable.
The proper officer can cancel the GST registration of a registered person on various grounds, some of which are listed below:
1. Non-filing of GST returns for a continuous period of 6 months or more.
2. Contravention of GST laws, rules or provisions.
3. Failure to commence business within 6 months from the date of registration.
4. Non-maintenance of proper books of accounts or records.
5. Submission of false information at the time of GST registration.
6. Non-payment of GST liability for a continuous period of 3 months or more.
7. Non-compliance with the direction or order of the GST authorities.
8. Surrender of GST registration by the registered person.
It is important to note that the proper officer has to provide a show-cause notice to the registered person before initiating the cancellation proceedings and give them a reasonable opportunity to be heard. The decision to cancel the GST registration should be based on a reasoned order, after considering the explanation provided by the registered person.
The following is the procedure that needs to be followed by the proper officer for cancellation of GST registration:
1. Issue a show-cause notice: The proper officer must issue a show-cause notice in FORM GST REG-17 to the registered person, who is liable for cancellation of GST registration. This notice should state the reasons for the proposed cancellation and require the registered person to furnish a reply within a specified time period, which should not be less than seven working days.
2. Consider the reply: After receiving the reply from the registered person, the proper officer must consider the reply and all the relevant material available on record, and then pass an order in FORM GST REG-19, either confirming the cancellation or rejecting it. The order should be passed within 30 days of receiving the reply, failing which the cancellation proceedings shall be deemed to have been withdrawn.
3. Surrender of registration: If the registered person wants to surrender the registration voluntarily, they must apply for the same in FORM GST REG-16. The proper officer will verify the application and, if satisfied, will cancel the registration in FORM GST REG-19.
4. Public notice: If the registration is cancelled, the proper officer must issue a public notice in FORM GST REG-20, informing the cancellation and requesting that the same be displayed prominently at the place of business.
It is important to note that the proper officer can cancel the GST registration only after following the due process of law and providing a reasonable opportunity to the registered person to be heard.
Here are some frequently asked questions related to cancellation of GST registration without proper explanation:
Q: Can the proper officer cancel the GST registration of a registered person without giving them an opportunity to be heard?
A: No, the proper officer cannot cancel the GST registration of a registered person without giving them an opportunity to be heard. As per the GST laws, the proper officer has to issue a show-cause notice to the registered person and provide them with a reasonable opportunity to explain their position before initiating the cancellation proceedings.
Q: Can the registered person challenge the cancellation of their GST
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