What Is Suo Moto Cancellation In GST?

Suo moto cancellation of a GST registration denotes that the taxpayer is not a GST registered individual, and his GSTIN will likewise expire. A taxpayer is therefore unable to pay taxes, claim an input tax credit, and is also thought to be conducting business without a GSTIN, both of which incur heavier penalties. I hope this clarifies your query, what is suo moto cancellation in GST? However, let us now focus on the conditions on which a suo moto cancellation by the tax officer can be initiated.

• The taxpayer registered their business using deception, omission, or false information.

• The taxpayer did not submit an application for GST enrollment within 90 days of the appointed date or any other prescribed extended deadline.

• The taxpayer has missed six consecutive deadlines for filing returns. For a composition taxpayer, three months is the deadline for filing returns.

• In breach of the CGST Act's rules, the taxpayer supplied goods or services without issuing an invoice in an effort to avoid paying taxes.

• It has been noted that the taxpayer has produced an invoice without providing any goods or services, again breaking the Act's rules in an effort to avoid receiving an input tax credit or a tax refund.

• failing to deposit collected taxes with the Treasury within the allotted 90 days

• Taxpayer's failure to make timely payments of taxes, interest, or penalties to the government.

• malfeasance being displayed during any GST Act hearings.

• It has been noted that a person is no longer responsible for tax deduction or collection under the GST legislation.

• Upon the death of the sole owner if the business structure is one of a sole proprietorship.

• In the case that a business merges, transfers, transfers, demerges, or does anything similar.

• If a constitutional amendment results in a modification of PAN

• In the event that a firm is discontinued or shuts down

After understanding what is suo moto cancellation of GST registration and the conditions on which a suo moto cancellation by the tax officer can be initiated, let us focus on;

• According to GST law, the tax officer must give the taxpayer a show-cause notice so that he has a chance to be heard. The taxpayer must respond to the show-cause notification by providing justification for not cancelling the registration. The taxpayer has seven working days to react to this notice.

• If the tax officer is pleased with the response given, he may decide to abandon the cancellation proceedings that were already underway. The taxpayer would be notified of this decision via SMS or email.

• The registration may be cancelled if the taxpayer does not respond within seven working days or if the tax officer is dissatisfied with the taxpayer's response.

I would like to conclude here as I believe this suffices your query, what is suo moto cancellation in GST. I hope this helps:)

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