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

Cancellation of GST registration does not extinguish tax liability; restoration and accepted returns support validity of past business activity. Restoration of the original GST registration number, absence of a show cause notice, and acceptance of returns by the common portal indicate continuity of registration; cancellation of registration does not affect the liability to pay tax and other dues for periods prior to cancellation, therefore business activities during the cancelled period are treated as valid where registration is restored and returns/payments are made.