Circular No. 145/01/2021-GST
CBEC-20/06/01/2021-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and
Customs
GST Policy Wing
New Delhi, dated the 11th February,
2021
To, The Principal Chief Commissioners / Chief
Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
Madam/ Sir,
Subject: Standard
Operating Procedure (SOP) for implementation of the provision of suspension of
registrations under sub-rule (2A) of rule 21A of CGST Rules, 2017 – regarding
As you are aware that vide notification No. 94/2020- Central Tax,
dated 22.12.2020, sub-rule (2A) has been inserted to rule 21A of the Central
Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules).
The said provision provides for immediate suspension of registration of a
person, as a measure to safeguard the interest of revenue, on observance of
such discrepancies /anomalies which indicate violation of the provisions of Act
and rules made thereunder; and that continuation of such registration poses
immediate threat to revenue.
Sub-rule (2A) of rule 21A
is reproduced hereunder:
“(2A) Where, a comparison
of the returns furnished by a registered person under section 39 with
a) the details of outward
supplies furnished in FORM GSTR-1; or
the details of inward
supplies derived based on the details of outward supplies furnished by his
suppliers in their FORM GSTR-1,
or such other analysis, as
may be carried out on the recommendations of the Council, show that there are
significant differences or anomalies indicating contravention of the provisions
of the Act or the rules made thereunder, leading to cancellation of
registration of the said person, his registration shall be suspended and the
said person shall be intimated in FORM GST REG-31, electronically, on the
common portal, or by sending a communication to his e-mail address provided at
the time of registration or as amended from time to time, highlighting the said
differences and anomalies and asking him to explain, within a period of thirty
days, as to why his registration shall not be cancelled.”;
2.2 Till the time an independent functionality for FORM REG-31 is
developed on the portal, in order to ensure uniformity in the implementation of
the provisions of above rule across the field formations, the Board, in
exercise of its powers conferred by section 168 (1) of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby provides
the following guidelines for implementation of the provision of suspension of
registrations under the said rule.
3. On the recommendation of the Council, the registration of
specified taxpayers shall be suspended and system generated intimation for
suspension and notice for cancellation of registration in FORM GST REG-31,
containing the reasons of suspension, shall be sent to such taxpayers on their
registered e-mail address. Till the time functionality for FORM REG-31 is made
available on portal, such notice/intimation shall be made available to the
taxpayer on their dashboard on common portal in FORM GST REG-17. The taxpayers
will be able to view the notice in the “View/Notice and Order” tab post login.
4. The taxpayers, whose registrations are suspended (hereinafter
referred to as “the said person”) under the above provisions, would be required
to furnish reply to the jurisdictional tax officer within thirty days from the
receipt of such notice / intimation, explaining the discrepancies/anomalies, if
any, and shall furnish the details of compliances made or/and the reasons as to
why their registration shouldn’t be cancelled:
a. The said person would be required to reply to the
jurisdictional officer against the notice for cancellation of registration sent
to them, in FORM GST REG-18 online through Common Portal withing the time limit
of thirty days from the receipt of notice/ intimation.
b. In case the intimation for suspension and notice for
cancellation of registration is issued on ground of non -filing of returns, the
said person may file all the due returns and submit the response. Similarly, in
other scenarios as specified under FORM GST REG-31, they may meet the
requirements and submit the reply.
5.1 Post issuance of FORM GST REG-31 via email, the list of such
taxpayers would be sent to the concerned Nodal officers of the CBIC/ States.
Also, the system generated notice can be viewed by the jurisdictional proper
officers on their Dashboard for suitable actions. Upon receipt of reply from
the said person or on expiry of thirty days (reply period), a task would be
created in the dashboard of the concerned proper officer under “Suo moto cancellation
proceeding”.
5.2 Proper officer, post examination of the response received from
the said person, may pass an order either for dropping the proceedings for
suspension/ cancellation of registration in FORM GST REG-20 or for cancellation
of registration in FORM GST REG-19. Based on the action taken by the proper
officer, the GSTIN status would be changed to “Active” or “Cancelled Suo-moto”
as the case maybe.
5.3 Till the time independent functionality for FORM GST REG-31 is
fully ready, it is advised that if the proper officer considers it appropriate
to drop a proceeding anytime after the issuance of FORM GST REG-31, he may
advise the said person to furnish his reply on the common portal in FORM GST
REG-18.
5.4 It is advised that in
case the proper officer is prima-facie satisfied with the reply of the said
person, he may revoke the suspension by passing an order in FORM GST REG-20.
Post such revocation, if need be, the proper officer can continue with the
detailed verification of the documents and recovery of short payment of tax, if
any. Further, in such cases, after detailed verification or otherwise, if the
proper officer finds that the registration of the said person is liable for
cancellation, he can again initiate the proceeding of cancellation of
registration by issuing notice in FORM GST REG-17.
6. Difficulties, if any, in implementation of these instructions
may be informed to the board (gst-cbec@gov.in).
(Sanjay Mangal)
Commissioner (GST)
Tags: GST