GST Registration revocation

[Mohideen A]

Hi All,

Would request your in sights in the below challenge

A registered entity’s GSTIN got suspended due to non-filing of returns and the time limit to revoke the same had lapsed (90 days), this was due to cash crunch faced by the registered person in discharging the tax liability to the exchequer.

Further when we were trying to revoke the suspension post the time lines the facility was disabled, since our business had retrieved now and the sustainability is guaranteed we wish to take fresh GSTIN since the earlier one got suspended and revocation isn’t feasible currently.

While making the fresh GST application PAN validation will re-instate the existence of GST and suspension of the same. Is there any other route to revoke the GSTIN which got suspended since taking fresh GSTIN and the proximity of its approval is remote.

[Amit Agrawal]

It is 'suspension' or 'cancellation' of registration?

And you get additional time of one month - besides three months from day of receipt of order - to file appeal u/s 107 if you have reasonable cause to explain the delay. You can think of using such option if such extended time to file appeal is available.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Mohideen A]

Dear Sir,

Thanks for your reply.

It was suspension of registration.. and the time period for appeal had also expired. In this scenario can we take fresh registration. Will the application be considered by the department.

Or is there any other option available to revoke the suspension order.

[Karunakar S]

Hi,

You can approach jurisdictional high court by preferring Writ Petition with the prayer to direct the Assessing officer to revoke the cancelation/suspension as the time was over for filing appeal. Now several High Court across India considering this prayer with the condition to file returns and tax due along with necessary penalty and interest. Even in Madras High Court had passed an eye opening judgment in this issue TVL. SUGUNA CUTPIECE CENTER VERSUS THE APPELLATE DEPUTY COMMISSIONER (ST) (GST) , THE ASSISTANT COMMISSIONER (CIRCLE) , SALEM BAZAAR. [2022 (2) TMI 933 - MADRAS HIGH COURT] Recently in

2022 (11) TMI 1186 - MADRAS HIGH COURT RAMAR ANDAVAR VERSUS THE ASSISTANT COMMISSIONER (CIRCLE)

[KASTURI SETHI]

You cannot apply for new registration as the existing registration has not been cancelled. It is suspended only.

[Amit Agrawal]

Kindly refer to Rule 21A of the CGST Rules, particularly sub-rule (4) and Rule 22.

Using these rules, kindly talk with Dept's officer, convince them about your bonafides and get the suspension revoked. Of-course, past liability / arrears with interest needs to be paid.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

I support the views of Sh.Amit Agrawal, Sir.

[Ganeshan Kalyani]

I agree with the views of the expert.

[Shilpi Jain]

Now there is a new facility opened at the GST portal whereby you could revoke your registration cancellation/suspension. This can be done automatically by filing the pending returns and paying the pending taxes.

As stated by Karunakarji, above, various HC decisions have held that the registration should not be cancelled and should be made effective on complying with requirements of law

[Shilpi Jain]

These HCs have held that cancelling registration is violative of Constitution of India as the dealer is not able to continue his business and further, it is not in the interest of Revenue since the dealer will continue his business but unable to pay taxes.

AI Summary

GST registration suspension: file pending returns and pay outstanding taxes to seek revocation; writ remedy may be available. Suspended GST registrations cannot be replaced by a fresh registration while suspension subsists; revocation is achievable by following the rules' revocation process-principally filing pending returns and paying outstanding taxes with interest and penalty-or by approaching the high court via writ petition to seek conditional revocation when statutory appeal periods are expired.