Standard Operating Procedures for application of the provision of suspension of GST registrations

Standard Operating Procedures for application of the provision of suspension of GST registrations

The Central Board of Indirect Taxes and Customs (CBIC) had issued the Standard Operating Procedures (SOP) through a circular for implementation of provisions regarding the suspension of registrations under the newly introduced sub-rule (2A) of Rule 21A of CGST Rules, 2017.

The rule states the power towards suspending GST registrations in the matters where significant variances or anomalies signifying contravention of the provisions of the Act or the rules due through comparison amid returns furnished through taxpayer in section 39 (GSTR3B) and outwards supplies in GSTR1 or inwards supplies resultant from GSTR-1 furnished through vendors.

In the above matter, the rule offers for intimation electronically in the Form REG-31 on the common portal. Though, the functionality for Form REG-31 is not developed as of now. Thus, the Standard Operating Procedures (SOP) offer that:

Until the functionality for FORM REG-31 has been made available on the portal, such notice/intimation would be made available towards taxpayers on their dashboard on the common portal in FORM GST REG-17. The taxpayers would be able to view the notice in the “View/Notice and Order” tab after they log in.

The taxpayers whose registrations have been suspended are required to reply to the jurisdictional officer against the notice for cancellation of registration sent to them online in FORM GST REG-18 through Common Portal within 30 days from receiving of notice/ intimation.

In the event that the intimation for suspension and notice for cancellation of registration has been issued due to non-filing of returns or any other situations, the said individual might file all the due returns or meet the necessities and submit the response.

The system-generated notice could be seen by jurisdictional proper officers on their Dashboard for appropriate actions. Proper officer, after examination of the response received from the said individual, might pass an order either to stop the proceedings for suspension/ cancellation of registration in FORM GST REG-20 or for cancellation of registration in FORM GST REG-19. Depending on the action taken through the proper officer, the GSTIN status shall be changed to “Active” or “Cancelled Suo-moto”.

However, until the independent functionality for FORM GST REG-31 is completely ready, it is recommended that if the proper officer contemplates it appropriate to drop a proceeding at any time after the issue of FORM GST REG-31, he might recommend the said individual to provide his reply on the common portal in FORM GST REG-18.

If the proper officer is prima-facie content with the reply of the said individual, he might revoke suspension through passing an order in FORM GST REG-20. After such revocation, if required, the proper officer could continue with the thorough verification of the documents as well as recovery of short payment of tax, if any.

Furthermore, in such cases, after thorough verification or otherwise, if the proper officer thinks that the registration of the said individual is liable for cancellation, he could again start the

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eStartIndia Team

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