Cancellation, Suspension & Revocation of Registration under GST

GST or Goods and Services Tax is one of the biggest indirect tax reforms which was introduced in India. GST has replaced all the indirect taxes that were previously levied on the goods and services. This tax is collected at every stage of the supply chain, from the manufacturer to the consumer. GST registration is mandatory for businesses having an annual turnover exceeding Rs. 20 lakhs. There are certain provisions under GST that allow the cancellation, suspension, and revocation of registration under certain circumstances. In this article, we will discuss these provisions in detail.

Cancellation of Registration under GST

Registered taxpayers are required to pay GST on a regular basis. If a registered taxpayer fails to comply with the GST regulations, their registration can be cancelled. The following are the circumstances under which the registration of a taxpayer can be cancelled:

1. Business discontinued, merged with another business, or has been transferred.

2. The taxpayer is no longer liable to pay GST.

3. Taken voluntary registration but has not commenced any business within six months from the date of registration.

4. Not furnished any returns for a continuous period of six months.

5. Not furnished any returns for three consecutive tax periods for which the return is required to be filed.

Suspension of Registration under GST

When the GST department has reasons to believe that a registered taxpayer has contravened the GST provisions, they may suspend the registration of the taxpayer. The following are the circumstances under which the registration of a taxpayer can be suspended:

1. Taxpayer contravened the provisions of GST by way of fraud, wilful misstatement, or suppression of facts.

2. Issued invoices without supplying the goods or services.

3. Availed input tax credit without an actual receipt of goods or services.

The suspension of registration is usually for a period of time and is revoked after the completion of the proceedings.

Revocation of Registration under GST

When the registration of a taxpayer has been cancelled or suspended, the taxpayer can apply for the revocation of registration. The application for revocation must be made within thirty days from the date of service of the order of cancellation or suspension. The following are the circumstances under which the registration of a taxpayer can be revoked:

1. Obtained the registration by means of fraud, wilful misstatement, or suppression of facts.

2. Contravened the provisions of GST.

3. Furnished returns for a continuous period of six months.

After due verification, the GST department may revoke the registration of the taxpayer. The taxpayer is required to pay all the dues, interest, and penalties before the revocation of registration.

Conclusion

GST has simplified the tax structure in India and has made it easier for businesses to comply with the tax regulations. However, it is important for businesses to understand the provisions related to the cancellation, suspension, and revocation of registration under GST. This will help the businesses to avoid any penalties and ensure a smooth functioning of their business.