Dear Experts, there are cases where the revenue rejects the cancellation application after keeping it pending for an unnecessarily long period. Till the time the application is rejected, the status of GSTN gets 'suspended'. In this backdrop, I have the following queries:
1. Can the individual do any other commercial activity like collecting rent, commission etc. till the time GSTN is suspended?
2. If the cancellation application is rejected later on, it will not be possible for the person to re-apply the cancellation from the same date as earlier. In such an event, is he required to pay tax on the rent/commission collected during the intervening period?
GST registration suspended pending cancellation - cannot lawfully make outward taxable supplies; document reasons and challenge delays A taxpayer who applied for GST cancellation and whose registration was suspended pending departmental action cannot lawfully make outward taxable supplies while suspended; activities treated as taxable supplies (rent, commission) during suspension would attract GST and potential liability if the cancellation is later refused and back-dating is unavailable. The appropriate approach is to determine and document the grounds for seeking cancellation and for the department's delay, escalate or file a grievance if the delay is unreasonable, and, if taxable supplies were made during suspension, be prepared to discharge tax, interest and penalties or seek administrative relief. (AI Summary)
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