Know How to Avoid Suspension of GST Registration

GST DOST's BLOG

Know How to Avoid Suspension of GST Registration
Feb, 2021
By Vikash Dhanania

Namaskar!

It can’t be denied that troubles come uninformed. That’s exactly what can happen if GSTR-3B shows considerable differences with GSTR 1 or GSTR 2A /2B.

Wondering how bad it can get?

Well, according to Rule 21(2A) of CGST Rules 2017, a GST Officer has the authority to suspend your registration. Yes, it’s that bad, and it can get worse for your business from there.

BUT all’s not lost. There are ways to combat the situation. Today, we will share with you how to.

 

Standard Operating Procedure as per Circular 145/01/2021- GST in case of Suspension of Registration

This is how it will begin -

Intimation of Suspension in Form REG 31

In case the registration of a taxpayer is suspended, the taxpayer will receive a system-generated intimation of suspension and notice for cancellation of registration in FORM GST REG-31. This notice will contain reasons for suspension and will be sent to the taxpayer’s registered email address. In this case, the taxpayer will be expected to explain, within 30 days, why the registration should not be suspended.

Reply in Form REG 18 within 30 days of receipt of Intimation

Upon the receipt of the notice, the taxpayer will be expected to respond to the Jurisdictional Tax Officer in GST REG 18 explaining the reason for the differences/anomalies. The taxpayer will also be required to furnish the details of compliances made and/or the reason why their registration should not be cancelled.

On the other hand, if the intimation for suspension and notice for cancellation of registration is issued on the ground of non -filing of returns, the taxpayer before filing the reply, should have to file all pending returns.

Issuance of Order either in Form REG 20 or REG 19 by GST Officer

It is up to the GST Officer to pass an order for either dropping the proceedings for suspension/cancellation of registration in FORM GST REG-20, or for cancelling the registration in FORM GST REG-19. Depending on the GST Officer’s decision, the status of GSTIN would change to “Active” or “Cancelled Suo-moto”. 

We understand that suspension or cancellation of registration can be disastrous for any business. Therefore, it is always best to stay cautious and avoid going down the wrong track.

Here are a couple of suggestions from GST DOST to every taxpayer in India:

  1. Adopt a Proactive and Preventive approach towards filing and reconciling GST Returns. Remedial actions can get expensive. 
  2. Rely on Automated Return Reconciliation Software that uses AI and BI to stay updated and ahead of the curve.

At GST DOST, it is our endeavour to help you to stay out of trouble which is why we share preventive measures with you. However, should you be looking for an expert to take remedial actions for you, or to even help you even file and reconcile GST Returns, we are here to help. 

Call us on

T: 908883000

E: support@gstdost.com

to get answers to your questions.

GST DOST is one of the most faithful and trusted GST advisors in India. And we intend to keep our trust in you alive the same way.

Regards 

GST DOST