CANCELLATION OF GST REGISTRATION

[DR.MARIAPPAN GOVINDARAJAN]

When the GST registration is cancelled what would be the impact on business. Whether they can levy GST on the supplies made by the business entity? If GST is levied registration is compulsory. Whether the business entity may be punished for levy of GST in the absence of registration certificate? There is no clear provision in this regard in the Act as well as in the Rules made thereunder.

Kindly throw light on this issue.

AI Summary

Unauthorized collection of GST is prohibited: cancelled registration bars charging tax and triggers recovery and penalties.
Cancellation of GST registration bars a person from collecting tax or issuing a tax invoice (Section 32 and Section 31). Unauthorized collection exposes the person to recovery under Section 76-requiring payment of collected amounts with interest-and to penalties under Section 125. Cancellation also disqualifies the person from claiming input tax credit under Section 16(1), increasing business costs and raising policy concerns about distinguishing fraudulent registrations from bona fide noncompliance.