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suspensin of gst registration

Nowadays the GST department has come up with all new weapons to mitigate non-compliances under GST. The suspension of GST registration under GST helps the GST officer to identify the fraud-causing circumstances and prevent it before it actually takes place. There are certain parameters and criteria on the basis of which GST officers suspend GST registration.

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suspensin of gst registration

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  1. SuspensionofGSTRegistration • Introduction: • Nowadays the GST department has come up with all new weapons to mitigate non-compliances under GST. The suspension of registration under GST helps the GST officer to identify the fraud- causingcircumstancesandpreventitbeforeit actually takesplace.Therearecertain parameters andcriteriaonthe basisofwhichGSTofficerssuspendGSTregistration. • Rule 21A of CGST Rules, 2017 lists out such circumstances or parameters on the basis of which theregistrationshallstandsuspended. • BriefaboutRule21AofCGSTRules,2017: • According tosub-rule (1) ofrule 21A,when anyregisteredpersonapplies forthe cancellationof GSTregistrationthenthe GSTregistrationshallbedeemed tobe suspended from the date of submission of the application of cancellation or from the date from which the cancellation is sought until the whole cancellation process gets completed.Thismeansthatonce youfile theapplicationfor cancellation,theGST number shallbedeemed tobesuspendedfromthedateofsubmissionofthe cancellationapplicationuntilthecancellationapplication getsapprovedandthe cancellationorderis servedtothe applicant.

  2. There are a few other circumstances also where the GST department thinks it necessary tosuspendthe GSTregistration. Suchcircumstancesare listedbelow. • When the GST officer has a reason to believe that the GST registration of a person is liable t be cancelled then he may suspend the GST registration until the whole process f cancellationgets completed. • When there are significant differences between the outward supplies furnished in GSTR- 1andGSTR-3B. • When there are significant differences between the ITC taken in GSTR-3b and the details ofoutwardsuppliesfurnishedinthe GSTR-1ofthe suppliers. • Significantcontraventionoflawnoticedoncomparisonofdocumentsbyaproper • officer whichmaylead tocancellationofGSTregistration. Suchpersonsshallbe intimated the suspension of their GST registration either electronically on GST common portalorthroughEmailat theaddressprovidedbythem at the time ofregistration. • Suchnoticecumintimationissuedbytheproperofficercontainsthedifferencesor • anomalies noticed and the assessee is asked to provide justification or clarification as to whyhis/herregistrationshouldnot be cancelled. • The personwhoseregistration getssuspendedshall notmakeanytaxablesupplies during the period of suspension and cannot furnish any returns during the period of suspension.This meansthattheregisteredpersoncannotcollectthe taxon their outwardsuppliesduringthe periodofsuspension. • The registered person whose registration has been suspended shall not be granted a refundduringtheperiodofsuspension. • As per sub-rule 4 of Rule 21A, the suspension of registration shall be deemed to be revokeduponcompletionofproceedingsbythe properofficer. • But, practicallyitisnotgettingdeemed revoked if the suspension was imposed for non- filing of GSTreturns.Since thepowers toremovethesuspensionvestsarewiththe jurisdictional AssistantCommissioner, you need to visitthe GST departmentand getit revoked. • Concluding remarks: The suspension of GST registration is generally imposed due to the non-filing of GST registration within the due dates. So, it is a well-accepted practice to file all necessary GSTreturns ontime.Moreover, thereare evencertain caseswhereGST registration gets suspended due to filing of “NIL” returns for a continuous period of more than 6 months. So, it is most advisable to take GST registration only when you actually start running the business.

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