Regarding LIABILITY after GST number cancelled.

[JIGNESH SITAPARA]

Dear Experts,

My client GST number cancel (suo_moto) since last 3 years. Now, he applying new registration number on same pan. But department issue notice and require bank statement for the period which was cancelled GST number. Now, my client was continually business after the cancel the GSTIN and many credit entry shown in bank statement also. Now, will the department be able to issue demand notice for paying taxes for releated this period ?

AI Summary

Liability after GST cancellation: continued business and bank credits can trigger tax, interest and penalties based on reconstructed turnover.
Liability after cancellation of a GST registration persists where taxable business continues without registration; credit entries in bank statements are prima facie evidence of receipts that may be treated as taxable supplies, and a fresh registration does not extinguish liability for the earlier unregistered period. The authority may reconstruct turnover and issue assessments or demand tax, interest and penalties, while the taxpayer bears the burden of proving receipts are non taxable and must consider limitation periods and fraud related risks.