[BREAKING] CBIC revises GST Registration Suspension/Cancellation of Drop Proceedings Rules for Non-Linking of Bank Account and Non-Filing of Returns [Read Notification]

In a significant regulatory development, the Central Board of Indirect Taxes and Customs ( CBIC ) has issued a notification introducing amendments to the Central Goods and Services Tax ( CGST ) Rules, 2017.

These amendments are poised to streamline GST compliance by providing relief to taxpayers who faced the risk of registration cancellation.

The amendments address issues surrounding the cancellation of GST registrations due to non-linking of bank accounts and non-filing of returns. Specifically, the government has made provisions that allow suspension of cancellation proceedings if certain conditions are met, such as successful linkage of bank accounts and compliance with return filing requirements.

The amendments aim to prevent the cancellation of GST registrations if taxpayers meet their obligations, such as linking their bank accounts or filing overdue returns. According to the notification, if a taxpayer successfully links their bank account or files pending returns within the stipulated time frame, cancellation proceedings initiated earlier can be suspended or withdrawn.

Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

Changes in Rule Compliance - The amendments introduce several changes to Rule 10A and related provisions under the CGST Rules, including setting specific deadlines and procedural guidelines to address compliance lapses effectively.

The notification stated as follows: –

Reference No.- ZA260821000033A Date: DD/MM/YYYY

To

<Taxpayer Name>

<Taxpayer Address>

GSTIN/ UIN: <GSTIN number>

“Form GST REG-20

[See rule 22(4)]

Show Cause Notice No.: <SCN number>     Date: DD/MM/YYYY

Order for Dropping the Proceedings for Cancellation of Registration

This has reference to your reply filed vide ARN ---------- dated in response to the show cause notice referred to above. Upon consideration of your reply and/or submissions made during hearing, the proceedings initiated for cancellation of registration stands vacated for the following reasons:

<<text>> Or

This is in reference to Notice issued in REG-31 vide Reference Number <SCN number> dated DD/MM/YYYY for contravention of provisions of rule 10A of the Central Goods Services Tax Act, 2017 (12 of 2017).

Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

Since you have furnished the valid details of bank account on the common portal in the system, the proceedings initiated for cancellation of registration are hereby dropped.

Or

This is in reference to Notice issued in REG-31 vide Reference Number <SCN number> dated DD/MM/YYYY, for contravention of the provisions of clause (b) or clause (c) of sub-section (2) of section 29 of the Central Goods ServicesTax Act, 2017 (12 of 2017). Since you have filed all the pending returns which were due on the date of issue of the aforesaid notice, and have made payment of self-assessed tax, the proceedings initiated for cancellation of registration are hereby dropped.

Suspension of the registration stands revoked with effect from DD/MM/YYYY

Designation Jurisdiction Place: Date:”.

Signature

< Name of the Officer>

16.       In the said rules, in FORM GST REG-31, after paragraph 6, the following shall be inserted, namely: -

“OR

SUSPENSION DUE TO VIOLATION OF RULE 10A

1.         It has been noticed that as per the provisions of rule 10A, requiring you to furnish the details of bank account within thirty days from the grant of registration, you have not furnished the valid details of bank account within thirty days from the date of grant of registration.

2.         The discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.

3.         Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of rule 21A.

4.         Accordingly, you are requested to furnish the valid details of bank account on the common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this notice, providing explanation to the above stated discrepancy or anomaly or contravention. Any possible misuse of your credentials on the GST common portal, by any person, in any manner, may also be specifically brought to the notice of the jurisdictional officer.

5.         The suspension of registration shall be lifted after you furnish the valid details of bank account on the common portal within stipulated time.

6.         You may please note that your registration may be cancelled in case you fail to furnish the valid details of bank account on the common portal within stipulated time or fail to furnish a reply within the stipulated time.

Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

OR

1.         It has been noticed that as per the provisions of rule 10A, requiring you to furnish the details of bank account within thirty days from the grant of registration. The information regarding bank account details furnished by you are not matching with the details available with the bank.

2.         These discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017(12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.

3.         Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of rule 21A.

4.         Accordingly, you are requested to furnish the valid details of bank account on the common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this notice, providing explanation to the above stated discrepancy or anomaly or contravention. Any possible misuse of your credentials on the GST common portal, by any person, in any manner, may also be specifically brought to the notice of the jurisdictional officer.

5.         The suspension of registration shall be lifted after you furnish the valid details of bank account on the common portal within stipulated time.

6.         You may please note that your registration may be cancelled in case you fail to furnish the valid details of bank account on the common portal within stipulated time or fail to furnish a reply within the stipulated time.

OR

SUSPENSION DUE TO VIOLATION OF RULE 21

1.         It has been noticed that as per the provisions of clause (h) or clause (i) of rule 21, requiring you to file return under sub-section (1) of section 39, have not furnished for a continuous period of six months or for a continuous period of two quarters.

2.         These discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017(12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.

Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

3.         Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of sub-rule (2A) of rule 21A.

4.         Accordingly, you are requested to file return under sub-section (1) of section 39 on the common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this notice, providing explanation to the above stated discrepancy or anomaly or contravention. Any possible misuse of your credentials on GST common portal, by any person, in any manner, may also be specifically brought to the notice of jurisdictional officer.

5.         The suspension of registration shall be lifted after you file the returns under sub-section (1) of section 39 on the common portal.

6.         You may please note that your registration may be cancelled in case you fail to file returns under sub-section (1) of section 39 on the common portal within stipulated date or fail to furnish a reply within the stipulated time.”

To Read the full text of the Notification CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates