SUB   GST p2.4

Cancellation or Suspension of Registration

22 May 2020

Application for cancellation or suspension of registration

A registered person, seeking cancellation of his registration shall electronically apply FORM GST REG-16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof, at the common portal within 30 days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner.

Registration to be canceled in certain cases

Registration granted to a person is liable to be canceled if the said person: – 

• does not conduct any business from the declared place of business.

• issues invoice or bill without supply of goods or services in violation of the provisions of the GST Act.

• violates the provisions of section 171 of the GST Act or the rules made thereunder.

• violates the provisions of rule 10A.

Suspension of registration

1. Where a registered person has applied for cancellation of registration, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration.

2. Where the proper officer has reasons to believe that the registration of a person is liable to be canceled, he may, after affording the said person a reasonable opportunity of being heard, suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration.

3. A registered person, whose registration has been suspended, shall not make any taxable supply during the period of suspension and shall not be required to furnish any return. The expression “shall not make any taxable supply” shall mean that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the period of suspension.

4. The suspension of registration shall be deemed to be revoked upon completion of the proceedings by the proper officer and such revocation shall be effective from the date on which the suspension had come into effect.

Cancellation of registration 

1. Where the proper officer has reasons to believe that the registration of a person is liable to be canceled, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within 7 working days from the date of the service of such notice, as to why his registration shall not be canceled. 

2. The reply to the show-cause notice issued shall is furnished in FORM REG-18 within the specified period. 

3. Where a person who has applied for cancellation of his registration is no longer liable to be registered or his registration is liable to be canceled, the proper officer shall issue an order in FORM GST REG-19, within 30 days from the date of application submitted, and cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid.

4. Where the reply furnished is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20. Where the person instead of replying to the notice served for contravention of the provisions, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST-REG 20.