{"id":10926,"date":"2021-02-17T18:53:14","date_gmt":"2021-02-17T13:23:14","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=10926"},"modified":"2022-01-29T11:54:37","modified_gmt":"2022-01-29T06:24:37","slug":"how-to-avoid-gst-suspension-registration","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/","title":{"rendered":"Avoidance of GST Registration Suspension"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dc8363c00eb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dc8363c00eb\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#Way_of_Avoid_GST_Suspension_Registration\" title=\"Way of Avoid GST Suspension Registration\">Way of Avoid GST Suspension Registration<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#No_opportunity_to_be_heard_by_taxpaying_citizens_for_suspension_of_registration\" title=\"No opportunity to be heard by taxpaying citizens for suspension of registration.\">No opportunity to be heard by taxpaying citizens for suspension of registration.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#What_is_indicated_by_the_suspension_of_registration_of_the_GST\" title=\"What is indicated by the suspension of registration of the GST?\">What is indicated by the suspension of registration of the GST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#For_whom_GST_or_GSTIN_registration_can_be_suspended\" title=\"For whom GST or GSTIN registration can be suspended?\">For whom GST or GSTIN registration can be suspended?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#Suspension_Intimation_in_Form_REG_31\" title=\"Suspension Intimation in Form REG 31:\">Suspension Intimation in Form REG 31:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#Respond_to_Form_REG_18_within_30_days_of_receipt_of_the_intimation\" title=\"Respond to Form REG 18 within 30 days of receipt of the intimation:\">Respond to Form REG 18 within 30 days of receipt of the intimation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#Issuance_of_an_order_by_the_GST_Officer_either_under_Form_REG_20_or_Form_REG_19\" title=\"Issuance of an order by the GST Officer either under Form REG 20 or Form REG 19:\">Issuance of an order by the GST Officer either under Form REG 20 or Form REG 19:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#What_is_the_timeframe_of_suspension_of_registration_of_the_GST\" title=\"What is the timeframe of suspension of registration of the GST?\">What is the timeframe of suspension of registration of the GST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/how-to-avoid-gst-suspension-registration\/#Impact_of_suspension_of_registration_of_GST\" title=\"Impact of suspension of registration of GST: \">Impact of suspension of registration of GST: <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Way_of_Avoid_GST_Suspension_Registration\"><\/span><span style=\"color: #ff6600;\">Way of Avoid GST Suspension Registration<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Picture1-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10927\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Picture1-1-1024x487.jpg\" alt=\"www.carajput.com; How to avoid suspension of GST registration?\" width=\"833\" height=\"397\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Picture1-1-1024x487.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Picture1-1-300x143.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Picture1-1-768x365.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Picture1-1.jpg 1379w\" sizes=\"(max-width: 833px) 100vw, 833px\" \/><\/a><\/p>\n<ul>\n<li>The Government of India through the Goods and Services Tax Network (<a href=\"https:\/\/www.caindelhiindia.com\/blog\/2286\/\">GSTN<\/a>) has recently begun to send SMS messages to taxpayers notifying them of the differences between the GST returns they have filed.<\/li>\n<li>As per the recent Notification 94\/2020 of 22 December 2020, a new sub-rule 2A has been added to Rule 21A of the Central Goods and Services Tax (CGST) Rules.<\/li>\n<li>Any big variations or anomalies measured between the GSTR-3B and the GSTR-1\/2B could result in the suspension of GST registration.<\/li>\n<li>Furthermore, if these differences remain unexplained, the Goods and Services Tax Network could be canceled.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"No_opportunity_to_be_heard_by_taxpaying_citizens_for_suspension_of_registration\"><\/span><span style=\"color: #000080;\"><strong>No opportunity to be heard by taxpaying citizens for suspension of registration.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>In addition, if the taxpayer has applied for cancellation, the tax officer may suspend the registration until the cancellation procedure has been completed as per the provisions of new Rule 21A as introduced by notification 94\/2020.<\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" title=\"What is GST | GST \u0915\u094d\u092f\u093e \u0939\u0948 | Types of GST Registration | GST Return | GST Registration Process\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/WRnOU8xORgw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>Also read: <a href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-12-2016\/\">Taxpayers should keep in mind while GST Returns filing<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_indicated_by_the_suspension_of_registration_of_the_GST\"><\/span><span style=\"color: #000080;\"><strong>What is indicated by the suspension of registration of the GST?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The Govt has come up with a new framework of suspension of registration of GST. Rule 21A has been added to the CGST Rules 2019.<\/li>\n<li>With the implementation of this rule, the taxpayer who has implemented the cancellation of the <a href=\"https:\/\/carajput.com\/blog\/tag\/gst-registration-procedure\/\">GST registration<\/a> will not be needed to comply with the requirements of the GST return filing during the period of suspension.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"For_whom_GST_or_GSTIN_registration_can_be_suspended\"><\/span><span style=\"color: #000080;\"><strong>For whom GST or GSTIN registration can be suspended?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The <a href=\"https:\/\/carajput.com\/blog\/tag\/gst-updates\/\">GSTIN<\/a> of a registered person may only be canceled by a proper officer if he has grounds to suppose that the registration must be canceled.<\/li>\n<li>The competent authority shall give the registered person a sensible chance to be heard and shall apply the proper cancellation process referred to in Rule 22 of the CGST Rules 2017.<\/li>\n<li>The competent authority may suspend the registration during the time frame during which such cancellation hearings actually occur.<\/li>\n<li>In accordance with the provisions of Rule 21(2A) of the CGST Rules 2017, the GST Officer has the power to suspend your registration. If GSTR-3B has significant differences with GSTR 1 or GSTR 2A\/2B.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>The Standard Operating Procedure (SOP) <\/strong><\/span>has been notified by the Central Board of Indirect Taxes and Customs (CBIC) for implementation of the suspension provision under sub-rule (2A) of Rule 21A of the 2017 CGST Rules.<\/p>\n<p>Standard operating procedure in accordance with Circular 145\/01\/2021-GST in the case of suspension of registration. How it will be starting are as bellow:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Suspension_Intimation_in_Form_REG_31\"><\/span><span style=\"color: #000080;\"><strong>Suspension Intimation in Form REG 31:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/ddownload.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10931\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/ddownload.jpg\" alt=\"www.carajput.com; How to avoid suspension of GST registration?\" width=\"829\" height=\"433\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/ddownload.jpg 310w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/ddownload-300x157.jpg 300w\" sizes=\"(max-width: 829px) 100vw, 829px\" \/><\/a><\/p>\n<ul>\n<li>In the case that a taxpayer&#8217;s registration is suspended, the taxpayer would receive a system-generated intimation of suspension and notice of cancellation of registration in<strong> FORM GST REG-31.<\/strong><\/li>\n<li>This notice will include the reasons for the suspension and would be sent to the registered email address of the taxpayer.<\/li>\n<li>In this scenario, the taxpayer is required\u00a0to explain why the registration should not be suspended\u00a0within 30 days.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Respond_to_Form_REG_18_within_30_days_of_receipt_of_the_intimation\"><\/span><span style=\"color: #000080;\"><strong>Respond to Form REG 18 within 30 days of receipt of the intimation:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Gst-reg-18-form.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10932\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Gst-reg-18-form-1024x538.jpg\" alt=\"www.carajput.com; Information about GST REG FORM-18\" width=\"840\" height=\"441\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Gst-reg-18-form-1024x538.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Gst-reg-18-form-300x158.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Gst-reg-18-form-768x403.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/Gst-reg-18-form.jpg 1200w\" sizes=\"(max-width: 840px) 100vw, 840px\" \/><\/a><\/p>\n<ul>\n<li>After receiving the notice, the taxpayer will be required to respond to the Legal Tax Officer in <strong>GST REG 18<\/strong> explaining the reasons for the differences\/anomalies.<\/li>\n<li>The taxpayer would also be expected to provide the details of the compliance requirements rendered and\/or the reason why their registration should not have been cancelled.<\/li>\n<\/ul>\n<ul>\n<li>On the other side, if the notification of suspension and notification of cancellation of registration is issued on the ground of non-filing of the returns, the taxpayer should have to file all the outstanding returns before submitting the reply.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Issuance_of_an_order_by_the_GST_Officer_either_under_Form_REG_20_or_Form_REG_19\"><\/span><span style=\"color: #000080;\"><strong>Issuance of an order by the GST Officer either under Form REG 20 or Form REG 19:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/gst-reg-19.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10933\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/gst-reg-19-1024x538.jpg\" alt=\"www.carajput.com; Information about GST REG FORM-19\" width=\"836\" height=\"439\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/gst-reg-19-1024x538.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/gst-reg-19-300x158.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/gst-reg-19-768x403.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/02\/gst-reg-19.jpg 1200w\" sizes=\"(max-width: 836px) 100vw, 836px\" \/><\/a><\/p>\n<ul>\n<li>GST Officer has the authority to issue an order either to drop the suspension\/cancellation of registration proceedings in<strong> FORM GST REG-20 <\/strong>or to cancel registration in <strong>FORM GST REG-19<\/strong>.<\/li>\n<li>Depending on the actions of the GST Officer, the status of GSTIN will be adjusted to &#8220;Active&#8221; or &#8220;Cancelled Suo-moto.&#8221; suspension or cancellation of registration can be problematic for any business. Therefore, it is always best to be cautious to avoid going down a dangerous path.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_timeframe_of_suspension_of_registration_of_the_GST\"><\/span><span style=\"color: #000080;\"><strong>What is the timeframe of suspension of registration of the GST?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The suspension of the GST registration shall take days from the date on which the registered person has applied for the cancellation of the GST registration. The start date of suspension shall be the later of the below:<\/p>\n<ul>\n<li>Submitting the application for cancellation of registration date<\/li>\n<li>Cancellation is the requested date<\/li>\n<\/ul>\n<p><strong><span style=\"color: #000080;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Whichever is later.<\/span> <\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Impact_of_suspension_of_registration_of_GST\"><\/span><span style=\"color: #ff6600;\"><strong>Impact of suspension of registration of GST: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>The person for whom the registration has been suspended shall:<\/strong><\/span><\/p>\n<ol>\n<li>Cannot make any taxable supply after suspension of payment.<\/li>\n<li>No returns are needed, as required by section 39 of the Central Goods and Service Tax Act, 2017. Decrease of the responsibility of adherence is the biggest advantage appreciated by the taxpayer until the GST registration has been suspended.<\/li>\n<\/ol>\n<p><span style=\"color: #993366;\"><strong>Here are a few suggestions from Rajput Jain Associates (RJA)\u00a0to every taxpayer in India:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000080;\">Implement a <strong>Proactive<\/strong>\u00a0and\u00a0<strong>Preventive<\/strong>\u00a0approach to filing and reconciling GST returns. Measures of remedial can be costly.<\/span><\/li>\n<li><span style=\"color: #000080;\">Rely on <strong>Automated Return Reconciliation Software <\/strong>for GST that uses artificial intelligence (AI) and Business intelligence (BI) to keep up-to-date and way ahead.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Popular Article :\u00a0<\/strong><\/span><\/p>\n<ul>\n<li><em><strong><a href=\"https:\/\/carajput.com\/blog\/itc-on-marketing-expense-sales-promotional-schemes\/\">ITC on Marketing Expenses\/Sales Promotion Scheme<\/a>\u00a0<\/strong><\/em><\/li>\n<li><u> <\/u><strong><em><a href=\"https:\/\/carajput.com\/blog\/all-about-gst-offenses-penalties-appeals\/\">All about GST Offenses, Penalties &amp; Appeals<\/a><\/em><\/strong><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-6th-may\/\">Overview of GST Audit &amp; its Procedures<\/a><\/li>\n<li><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Way of Avoid GST Suspension Registration The Government of India through the Goods and Services Tax Network (GSTN) has recently begun to send SMS messages to taxpayers notifying them of the differences between the GST returns they have filed. As per the recent Notification 94\/2020 of 22 December 2020, a new sub-rule 2A has been &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10009],"tags":[9762,9763,9764],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10926"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=10926"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10926\/revisions"}],"predecessor-version":[{"id":21613,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10926\/revisions\/21613"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=10926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=10926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=10926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}