Continuous Non-Furnishing of GSTR-3B a Ground for Cancellation of GST Registration: CBIC Notifies Amendment to GST Rules [Read Notification]

In a major amendment to the Central Goods and Services Tax ( GST ) Rules, 2022, the Central Board of Indirect Taxes and Customs (CBIC) has notified that the non-furnishing of GSTR-3B for a continuous period of six months or for a continuous period of two tax periods would be a ground for cancellation of GST registration.

While notifying the Central Goods and Services Tax (Second Amendment) Rules, 2022, the CBIC added two more clauses to Rule 21 for the cancellation of GST registration including “―(h) being a registered person required to file return under subsection (1) of section 39 for each month or part thereof, has not furnished returns for a continuous period of six months;(i) being a registered person required to file return under proviso to subsection (1) of section 39 for each quarter or part thereof, has not furnished returns for a continuous period of two tax periods.”

Further, Rule 37 is also amended as “(1) A registered person, who has availed of input tax credit on any inward supply of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, but fails to pay to the supplier thereof, the amount towards the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section(2) of section 16, shall pay an amount equal to the input tax credit availed in respect of such supply along with interest payable thereon under section 50, while furnishing the return in FORM GSTR-3B for the tax period immediately following the period of one hundred and eighty days from the date of the issue of the invoice: Provided that the value of supplies made without consideration as specified in Schedule I of the said Act shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16: Provided further that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16.; (2) Where the said registered person subsequently makes the payment of the amount towards the value of such supply along with tax payable thereon to the supplier thereof, he shall be entitled to re-avail the input tax credit referred to in sub-rule (1).”

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