GST REGISTRATION

[Guest]

I have registered with GST and got GSTN number. But the GSTN wad cancelled within a month. Unfortunately, i have not noticed the same and continue the business without filing returns for span of 6 months.

Now, my GSTN was activated after filing all returns and payments for the said period. Now my query is the business during the period is valid under GST rules.

Pls clarify with relevant notifications/circulars

Thanks & Regards

[KASTURI SETHI]

Your business remains valid during the said period of cancellation of GST registration number on the following grounds:

(i) Your original GST Registration Number has been restored.

(ii) No show cause notice was issued to you for cancellation. Registration cannot be cancelled without the issuance of SCN.

(iii) The Common Portal System has accepted your returns.

(iv) As per Board's Flyer No.2 dated 1.1.18 (para no.(ix) under heading 'Procedure for Cancellation)

ix. The cancellation of registration shall not affect the liability of the person to pay tax and other dues for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. Hence if your liability stands valid legally, the business is also legally valid.

[DR.MARIAPPAN GOVINDARAJAN]

It is valid.

AI Summary

Business Operations Valid Despite GST Cancellation; No Show Cause Notice Issued, Compliance Restored Per Board's Flyer No.2 A user inquired about the validity of their business operations during a period when their GST registration was canceled. They continued business without filing returns for six months but later reactivated their GST number after fulfilling all necessary filings and payments. Respondents clarified that the business remains valid because the GST registration was restored, no show cause notice was issued for cancellation, the returns were accepted by the portal, and according to Board's Flyer No.2, the cancellation does not affect tax liabilities for the period before cancellation. Therefore, the business operations during that time are legally valid.