VALIDITY OF MVAT CST

[Guest]

Hello,

I want to know how long is the MVAT CST Certificate / Number valid.

[Ganeshan Kalyani]

In most of the states it is valid till your business exist. in some states the validity is given which need to renewed. Right now I couldn't recollect the name of that state.

[AJAY VORA]

The provisions regarding validity of Reg. is provided;

U/S . 16 of the MVAT Act,2002 & CST Act,1956:- (Reg. is liable to be cancelled

6) Where,-

(a) any business, in respect of which a certificate of registration has been issued under this section, has been discontinued or otherwise disposed of, or has been transferred 5[* * *], or

(b) the turnover, of sales or the turnover of purchases of a registered dealer who has become liable to pay tax under section 3 has during any year not exceeded the relevant limit specified in sub-section (4) of section 3, ^5a[or]

^5b[(c) the turnover of sales of a registered dealer, other than an importer, has during the year 2013-14, not exceeded the limit, specified in sub-section (4) of section3;]

then in the case covered by clause (a), the dealer shall apply in the prescribed manner and within the prescribed time, for cancellation of his registration to the Commissioner, and in the case covered by clause (b), the dealer may apply, in the prescribed manner, for cancellation, of his registration to the Commissioner; and thereupon the Commissioner may, after such inquiry as he deems fit and subject to the rules, cancel the registration with effect from such date including any date earlier to the date of the order of cancellation as he considers fit having regard to the circumstances of the case. ^5c[In the case covered by clause (c), the dealer may apply in the prescribed form for cancellation of his registration to the Commissioner on or before the 30th September 2014 and thereupon the Commissioner may, after such inquiry as he deems fit, cancel the registration with effect from the 1st October 2014.] The registration certificate cancelled under this sub-section shall be returned to the Commissioner within the prescribed time :

Provided that, where the Commissioner is satisfied that any business in respect of which a certificate has been issued under this section has been discontinued or disposed of 5[* * *], and the dealer has failed to apply under clause (a) as aforesaid for cancellation of registration, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, cancel the registration with effect from such date as he may fix to be the date in accordance with the rules, if any, from which the business has been discontinued or disposed of or changed to a different local area, as the case may be :

6[Provided further that, where the Commissioner is satisfied that any person who has voluntarily got himself registered has not commenced business within six months from the date of registration, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, cancel the registration certificate with effect from such date as he may fix in accordance with the rules:]

AI Summary

Registration validity for MVAT/CST hinges on business continuance; Commissioner may cancel registrations after inquiry and hearing. MVAT and CST registration generally remain valid while the business exists, though some states may prescribe fixed validity. Registration may be cancelled where the business is discontinued, transferred, or turnover falls below the threshold; dealers must apply as prescribed and the Commissioner may cancel after inquiry, including with retrospective effect, and the cancelled certificate must be returned. The Commissioner may also cancel where the dealer failed to apply after discontinuance or where a voluntarily registered person did not commence business within six months, after giving a reasonable opportunity of being heard.