Suo Moto GST Registration Cancellation

Suo Moto GST Registration Cancellation

Suo Moto GST Registration Cancellation: Suo Moto Cancellation of GST Registration means revocation of registration by GST Officer. Suppose a taxpayer does not comply with the provisions laid down under Goods and Service Tax. In that case, the proper officer is empowered to initiate the cancellation of GST registration of such defaulting taxpayers. This type of cancellation of registration initiated by a conventional officer is called suo moto cancellation of registration. There must be a substantial reason for initiation for continuing Suo moto cancellation as stipulated under Section 29(2) of the CGST/SGST Act. Any contracts before the Suo moto cancellation date will have to be paid by the taxpayer, irrespective of when liabilities are determined. It can be recovered later on, even after the cancellation of GSTIN.

Reasons for Suo Moto Registration Cancellation

The Suo Moto Cancellation of registration is started by the Tax Official for various situations as stated in the GST law provisions. The different types of situations are given below-

  • If the Enrollment Application is not being presented within three months from the selected day, the Tax Official starts the cancellation registration.
  • Any Taxpayer other than composition taxpayer has not listed returns for a consecutive period of six months.
  • Supplying any services or goods without any invoice issue, in breach of the provisions of the rules or act, made thereunder, planning to evade tax.
  • Wrongful utilisation of credit or tax refund by issuing bills/invoices against the fraudulent sale of goods or services, thereby breaching the act and the rules that fall under the act.
  •  The Tax Official starts the cancellation registration if one fails to pay any amount of tax, interest, or penalty to the Central/State Government account beyond a period of three months from the date on which such amount becomes overdue.
  • When a person is no longer responsible for deducting tax at source as per the provisions of GST Law
  • When a person is no longer accountable to collect tax at source as per the provisions of GST Law
  • The person no longer needed to be registered under terms of GST Law.
  • If a GST Practitioner, under the GST Law, is found indicted of misconduct in relation to any proceeding, the Tax Official starts the cancellation registration.
  • Closure/Discontinuation of Business
  • Change in Constitution directing to PAN change
  • Terminated to be liable to pay tax
  • During the business transfer on account of amalgamation, merger/demerger, lease, sale or otherwise disposed of,a etc.
  • Due to the Sole Proprietor Death
  • If the composition person has not provided returns for three consecutive tax periods,
  • If registration has been received using deception, wilful distortion, or suppression of facts. etc.

Communication SMC GST Registration

As per provision to Sec 29(2), a proper officer can’t void GST registration without presenting taxpayers with the possibility of being heard. In addition, as per Section 169(1), before transferring the cancellation order of GST Registration, the proper officer is expected to issue a report to the taxpayer. The Communication of notice can be performed by forwarding a communication to his/her registered mail address or by availing notice on the common GST portal.

Online Revocation Procedure

A registered person needs to follow the following steps to apply for cancellation online through the GST Portal:

Step 1: Open the GST Portal at “”

Step 2:  Enter the user id and the password.

Step 3:  Select services. Under services, click the “registration” button and then select the “application for revocation of cancelled registration” option in the GST Dashboard.

Step 4:  Select the “apply” option for “revocation of cancelled registration”. In the select box, enter the reason for “revocation of GST registration cancellation”.

Step 5: Choose an appropriate file to be added for any supporting documents, and select the verification checkbox and name of the authorised signatory.

Step 6: Lastly, click on the “SUBMIT WITH DSC OR SUBMIT WITH EVC” tab.

FAQ’s on Suo Moto GST Registration Cancellation

Question 1.
What happens when the Show Cause Notice is Dropped?

If the Tax Official is content with the acknowledgment collected from the taxpayer on the Show Cause Notice issued, the proceedings can be released. The Primary Authorised Signatory will be inferred about dropping of SCN by SMS & Email. The order issuance for the dropping of SCN will also be inferred to the Primary Authorised Signatory by mail and SMS. Also, the GSTIN Status will shift to “Active” from “Proceeding for Cancellation Initiated”.

Question 2.
State the precondition for SMC of Registration?

The precondition for SMC of Registration is that there should be a substantial reason for initiation of advancing for Suo moto cancellation as stipulated under Section 29(2) of the CGST/SGST Act.

Question 3.
What is the duration to file a response for Show Cause Notice concerning Suo Moto Cancellation of Registration?

One requires to provide a response within the given time limit of seven working days to file a reply to the SCN using the Services > Registration > Application for Listing Clarifications link. If there is no response given within the designated seven days, the Tax Official can continue with the cancellation of registration.

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