CBIC notified Guidelines on Cancellation of GST Registration 2021

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The Central Board of Indirect Taxes and Customs notified Guidelines on Cancellation of GST Registration under Rule22(3) of CGST Rules,2017.

Guidelines on Cancellation of GST Registration

Specifies the procedure followed for processing of applications filed by taxpayers for cancellation of registration rules 22(3) of CGST Act.

Where in it says that the proper officer is required to issue an order in FORM GST REG-19 in respect of the application for cancellation of registration filed by the taxpayer:-

  • Within a period of thirty days from the date of the application submitted by the taxpayer
  • Pay arrears of any tax, interest, or penalty including the amount liable will be paid u/ss (5) of section 29.

In order to provide clarification on various issues in relation to the processing of the 3 applications for cancellation of registration filed by taxpayers in FORM GST REG-16.

  • To ensure uniformity in the implementation of the provisions of law across the field formations.
  • Circular in respect of procedure has followed in relation to processing of applications for cancellation of reg. filed by taxpayers.

Since the cancellation of registration has no effect on the liability of the taxpayer for any acts of commission/omission committed before or after the date of cancellation.

The proper officer should accept all such applications within a period of 30 days from the date of filing the application, except in the two circumstances.

  • Firstly, the application in FORM GST REG-16 is incomplete,
  • i.e., where all the relevant particulars, as detailed in para 4 above, have not been entered.
  • Secondly, in case of transfer, merger, or amalgamation of business, the new entity in which the applicant proposes to amalgamate or merge has not got registered with the tax authority before submission of the application for cancellation.

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Guidelines on Cancellation of GST Registration

  • In such circumstances, the application for cancellation of registration should immediately accept by the proper officer.
  • The order for cancellation should be issued in FORM GST REG-19 with the effective date of cancellation being the same as the date from which the applicant has sought cancellation in FORM GST REG-16.
  • In any case, the effective date cannot be a date earlier than the date of application for the same.
  • However, the Board said that the office of C&AG during the course of the audit has observed that in a large number of cases.
  • The applications for cancellation of GST registration did not dispose of by tax officers within 30 days
  • As prescribed under Rules 22 (3) of CGST Rules 2017.
  • The cancellation applications have found pending even after more than 120 days in some cases

CBIC Notification

  • “Considering that the legal provision stipulates passing of the order in respect of the application of cancellation of reg. within 30 days of application date.
  • Also as it has already been clarified vide Circular No.
  • 69/43/2018-GST dated 26.10.2018 that cancellation of registration has no effect on the liability of the taxpayer for any Acts of commission/omission committed before or after the date of cancellation.
  • Proper officer should act as per prescribed legal process within stipulated time in order to avoid any delay,” CBIC notified.

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