September 27, 2021
Goods and Services Tax Network (GSTN) sends SMS to taxpayers to inform them regarding the irregularities between the GSTR filed by the taxpayers. As per the recent notification, a new sub-rules inserted that, any discrepancies noticed between the GSTR 3B and GSTR 1/2B may result in the suspension of GST registration. Unless these discrepancies are properly addressed, subsequently the GSTIN may get cancelled.
Moreover, in case the taxpayer has applied for cancellation, the tax officer could suspend his registration until the cancellation procedures are finished as per the new Rule 21A.
The GST regime has brought in a new idea of suspension of GST registration. Rule 21A has been inserted into the CGST Rules 2019. As a result of this rule, a taxpayer who has applied for the cancellation of GST registration, does not need to be compliant with the provisions of GST return filing in the course of the suspension period.
In case a tax officer believes that registration is required to be cancelled, the GSTIN of a registered person could be cancelled by him. The tax officer has to give the registered taxpayer a reasonable chance for hearing and then follow the right procedures for cancellation as said under Rule 22 of the CGST Rules 2017.
During the time in which cancellation procedures are being done, the officer could suspend the registration.
Rule 21A (2A) : A new sub rule 2A has been inserted through notification 94/2020 which says that in case a tax officer finds any irregularities :
The tax officer could issue GST REG- 31 Form for intimating such irregularities to the taxpayer .He would also intimate that unless a proper clarification is given on the irregularities the registration may also get cancelled.
He would also suspend the registration in accordance with Rule 21A (2A) with effect from the date of this communication to the taxpayer. Besides, the tax officer has the right to lift the suspension in case of a satisfactory reply.
This provision regarding the suspension of GST registration till cancellation was made happy for the taxpayers because it reduced the compliance burden of the taxpayer till the completion of cancellation procedures.
The suspension of GST registration comes into effect from the date the registered person has applied for the cancellation of GST registration. The valid date of suspension is the later of the following:
A taxpayer whose GST registration has been suspended:
The suspension of GST registration could be revoked after the finishing of GST registration cancellation procedures. revocation would be effective since the suspension date has come into effect.
The Central Board of Indirect Taxes and Customs has come up with SOP (Standard Operating Procedure) for implementing the suspension provisions imposed via rule 21A (2A) of the Central GST Rules, 2017.
As per that, the suspension of GST registration would be done in the following manner:
At present, the FORM GST REG-31 is not on the GST portal, and accordingly notice of the suspension would be available in FORM GST REG 17.