Here is a brief answer to your question about why the new GST gets registered post the Suo moto got revoked.
Cancellation of GST registration ‘suo moto’ signifies that the tax authority decided to cancel the registration independently. According to Section 29(2) of the CGST Act, the tax office needs a good reason to begin cancellation procedures.
Needed For Automatic GST Cancellation
- If any of the following is true, the tax officer may cancel the transaction suo moto
- If taxpayers register a business based on a lie, omission, or misrepresentation they will face penalties
- The taxpayer did not apply for GST registration process within 90 days of the appointed date or such later date as may be prescribed
- For six months, the taxpayer has not submitted tax returns. In the case of a composition taxpayer, the required period for submitting returns is reduced to three months
- The taxpayer has engaged in tax evasion by supplying goods or services without issuing an invoice, as prohibited by the CGST Act
- It has come to our attention that the taxpayer has issued an invoice without providing the products or services for which the invoice is being given to claim an input tax credit or a tax refund falsely.
- If the collected taxes aren’t deposited with the Treasury within 90 days.
- The taxpayer has a 90-day tax payment, interest, or penalty payment due to the government that has not been paid.
- Misconduct during any proceeding under the GST Act.
- It has come to light that the person in question is either exempt from or no longer subject to GST Tax Calculator deduction and collection obligations.
- Upon the death of the sole proprietor, if the business’s governing documents provide for a sole proprietorship; upon the amalgamation, transfer, merger, demerger, or similar event; and in the event of any other similar event.
- If the Constitution is amended in a way that affects PAN,
- If the company decides to shut down and stop operating,
The Correct Suo Moto Canceling Procedure
- GST legislation requires the tax officer to provide the taxpayer a show-cause notice, giving the taxpayer a chance to explain his side of the story. The taxpayer must provide reasons why the registration should not be revoked in response to the show-cause notice. The taxpayer must react to this notice within seven business days.
- If the tax officer is happy with his response, he may abandon the cancellation proceedings he has launched and notify the taxpayer of his decision through SMS or email.
- If the tax office does not hear back from the taxpayer within seven business days, or if the taxpayer’s response is unsatisfactory, the registration will be canceled.
Ability to get one’s voice heard
The cancellation of registration must be preceded by the issuance of a Show Cause Notice (SCN) and the taxpayer’s reasonable opportunity to respond to the SCN. The Tax Official must therefore serve the taxpayer with an SCN before beginning Suo Moto cancellation proceedings, requesting an explanation as to why the taxpayer’s registration should not be canceled.
What Will Happen If Suo Moto Cancellation is Canceled?
- Change the status of the UIN/GSTIN/GSTP ID from “Proceeding for Cancellation initiated” to “Inactive,” and notify any other relevant Tax Authorities.
- GST Number apply process involves filling out Form GST REG-01 on the GST portal.
- The taxpayer won’t be able to submit a return or invoices for the period after the cancellation order’s effective date.
- After a cancellation order has been issued, the taxpayer will no longer be able to change their registration information. You may alter your contact info (including email and cell phone) until any outstanding balances or refunds are resolved.
Please take note that the revoke application feature will be available for the canceled registration.
After Receiving A Cancellation Notice, What Recourse Does The Taxpayer Have?
Within seven working days of the taxpayer’s receipt of the Show Cause Notice, the taxpayer must respond (SCN).
- The officer can dismiss the proceedings if the taxpayer’s response convinces them.
- By both short message service (SMS) and electronic mail (email), the primary authorized signatory will be informed of the removal of the SCN.
- The taxpayer can view, print, and download the order from their dashboard.
- When this happens, GSTIN will go from being in a suspended state to an active one.
The officer may move forward with the cancellation of registration if they do not receive a response within seven business days.
When a GSTIN is deactivated, what functions are available in the GST portal?
When a taxpayer applies to have their registration canceled, or a Tax Officer initiates cancellation “Suo Moto,” the GSTIN will show as “Suspended.”
Following the suspension of GST, a taxpayer can do the following on the GST portal:
- Refund requests, payments, and appeals all need to be sent.
- You can either upload invoices or file returns for the period before your registration was suspended.
- React to orders/notices, non-essential amendments, etc., linked to assessment/recovery/enforcement.
When will the GST freeze go into effect?
If a taxpayer initiates cancellation of registration, the date of suspension will be the date on which the cancellation application was filed; if the GST officer starts cancellation of registration “Suo Moto,” the date of suspension will be the date on which the SCN for cancellation of registration is issued.
Can I still file my prior period’s GST returns if I cancel my “Suo Moto” registration?
After a suo moto cancellation, GST Returns can be filed for the prior period (i.e., the time before the date of cancellation specified in the cancellation order).
However, the taxpayer is not permitted to submit a return or invoices for the time period following the cancellation order’s effective date. Furthermore, GSTP will be unable to act on your behalf to perform GSTP duties for the period after the cancellation date specified in the cancellation order.
How can I get my GSTIN activated once it has been temporarily suspended?
A GSTIN that is currently in the “Suspended” status will be returned to the “Active” status if and only if the officer rejects the cancellation of the registration application or the suo moto cancellation process is abandoned after the hearing. When a taxpayer’s GSTIN is moved from the “Suspended” to the “Active” state, he is once again considered an active taxpayer and has full access to the GST Portal, as is the case for all active taxpayers.
Conclusion
Know the intricate details about why a new GST has been registered post the suo moto was revoked by the experts at Vakilsearch.
