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What Are The Reasons For Suspension Of GST Registration?

In this blog, we will take a look at what can be the reasons when the GST registration of a taxpayer can be suspended or canceled.

GST regulations offer a robust foundation for compliance. They are often changed in order to simplify the GST regime and make the law impartial for everyone. The GST registration of a taxpayer may be cancelled or suspended if they fail to follow the GST law or its related requirements.

In order to help you deal with this GST registration suspension scenario, let’s look more closely at the reasons and possible alternatives.

Reasons For Suspension of GST Registration

You as a taxpayer might be concerned about having your registration suspended or wondering why a GST registration could be cancelled. It should be noted, however, that no registration is terminated without good reason. Therefore, it is crucial to exercise extreme caution and keep an eye out for any potential reason for the termination of your GST Registration.

The following are a few reasons why your GST registration could be suspended:

 1: In the event that your company’s organisational structure changes.

2: In the event that a company is dissolved, sold, merged, or closed.

3: If the taxpayer disregards the CGST Act’s rules, it might be suspended.

4: The taxpayer has the option to voluntarily request the termination of their registration, in which case the authorised officer suspends the GST.

5: The officer has the authority to suspend the registration if the GST registration was obtained fraudulently.

6: If it is discovered that the company is actually operating from a location other than the one specified, registration will also be suspended.

7: In accordance with GST regulations, if a firm is not launched within six months following GST registration, the registration may be cancelled or suspended.

8: If the taxpayer is discovered to have issued bills for services or items that have not been rendered

9: After issuing a warning, the registration may be suspended if the taxpayer fails to provide accurate bank account information.

10: If a member of the composition plan has spent three consecutive tax periods without submitting his returns.

11: In the event that a person conducting business who is not covered by the composite scheme hasn’t filed the returns for six months.

GST Registration Suspension  

Only when there are valid reasons for the authorised authority to believe that the registration should be cancelled, can the registration be suspended. Before suspending the GST, the officer may provide a warning or give the offender a chance to make things right.

Form GST REG-31 is used to notify the taxpayer of discrepancies. The form also states that if the taxpayer does not offer a reasonable justification, GST may be cancelled. If the officer determines that the justification is insufficient or inadequate, he can nonetheless impose a suspension.

What Are The Consequences of GST Registration Suspension?

Once a taxpayer’s GST registration has been terminated, they are no longer eligible to make tax payments or submit GST returns.

It should be noted that if your GST registration has been cancelled or suspended and you come under the obligatory category of taxpayer, you must apply for a new GST registration. If this is the case, do not reapply for GST registration. Infringements of the GST laws will result in penalties from the GST authorities.

Stay Ahead – Be GST-ready. Begin your GST registration process here

What To Do After Suspension Of GST Registration?

Here are some points to consider if the taxpayer has received a warning but has not voluntarily requested for cancellation of registration:

1: On receiving a notice for discrepancies

If a taxpayer receives a notice of discrepancies, he has one month from the date of receipt to provide the tax office with a response. The response should explain why the registration shouldn’t be cancelled as well as all the corrective activities and steps taken to address the non-compliances.

2: On receiving a notice of cancellation

Within one month of receiving the notification, the tax officer must get a response from the taxpayer using Form GST Reg 18 through the official GST portal.

3: Receiving a notice due to non-filling of returns

The most classic example is the non-filing of returns. If a notice of suspension or cancellation of registration is given for failure to file required returns, the person named in the notice must file all required returns and submit a response.

How To Activate Suspended GST Registration?

As a registered taxpayer, you have 30 days to request the reactivation of your GST registration in accordance with the applicable laws. However, this can only be done if the registration is suspended by an authorised GST officer. A registration that has been voluntarily suspended cannot ever be revoked. There is no denying that the suspension regulations offer some relief to taxpayers.

Although the government has simplified the procedure, it is still advisable to get expert assistance when restoring a suspended GST registration. You can avoid major hassles and stay in compliance while receiving potential remedies to cope with the suspension of your GST registration by consulting a top-tier legal service provider like Vakilsearch.


In order to prevent abuse of the online system, the provisions controlling suspension of registration, particularly the most recent modifications, are created to offer the Government: an instant remedy in the event of any irregularity or GST law infringement. Additionally, any additional violations by the defaulters are forbidden.

Although the rules offer some relief to the legitimate taxpayer who requests cancellation of registration, they are more favourable to the department because they give it a wide range of authority. If you are someone who does not have much experience of the legal formalities involved in the GST registration processes, then Vakilsearch can help you with the best in class legal service to make the process smooth & hassle free for you. 

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