TaxTMI 
TaxTMI 
Cancellation/Deregistration of GSTIN as per provisions of Assam GST Act.
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....video conference(VC) and shared presentation expecting the Proper officers to become proactive in cancellation of inactive GSTIN. In this regard, it may be referred to Circular No.25/2018 (No. CT/GST15/2017/196 dated 29.10.2018) issued from this office as per decision of GST Council to guide the jurisdictional officers to process cancellation application. You may recall several training programs so far imparted to you in this regard. The detailed presentation made through a VC on 2nd August, 2018 would have been a guiding documents for your ready reference. This matter has become prime point of discussion in subsequent VCs also. Time and again, this Commissionerate pressed upon you to understand the adverse consequence of keeping such inactive GSTIN alive. These GSTIN are creating administrative inconvenience in following manners: • These GSTINs are not contributing any revenue to the state. • These GSTIN are affecting adversely the Tax-officers-taxpayer's ratio and administrative efficacy. • The existence of such inactive GSTIN are causing overall low return filing ratio. But, it is very disappointing to see that the Unit offices....
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....s: Under VAT, the threshold limit for registration was 6 lakhs only but in GST the initial limit was fixed at 10 lakhs for Assam. Later on, the limit was further enhanced to 20 lakhs and of late to 40 lakhs. While transition took place from VAT to GST, all the existing taxpayers irrespective of their threshold limit provisionally migrated to GST although almost 20% of the existing taxpayers were not having threshold limit less than 10 lakhs or 20 lakhs or 40 lakhs as applicable now. In course of time, most of such taxpayers opted out from continuing to be regular taxpayers and at the same time stopped filing returns with an impression that as they were no more liable under GST hence they had no obligation to file returns. Action to be taken by Unit office: Identify such taxpayers with help of the records extracted from earlier tax regime and cancel the registration as per law. 2. Multiple IDs allotted to single taxpayer for migration under GST: While the transition process was initiated, although same dealer had multiple registrations under multiple Acts such as VAT, Entry Tax, CST Act or Central excise/service Acts, all such registrations were allotted separate provisional I....
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....ay bills using such GSTIN and file no returns. Action to be taken by unit office: Identify such taxpayers with help of the records extracted from e-way bill data base. Identify the taxpayers who are newly registered and generating e-way bills of high value but not filing returns. Conduct physical inspection/verification of the location through Inspectors and cancel the registration as per law if required. Field verification to be ensured against doubtful new application for registration. 7. Persons having registration with no business premises or no stock: There are some registered taxpayers who are registered but have no entity of business premises or no stock that endorse business activities. Action to be taken by Unit office: Conduct physical inspection/verification of the location through Inspectors and cancel the registration as per law if required. Field verification to be ensured against doubtful new application for registration. In this regard, it may be mentioned that now field verification by Inspectors can be uploaded electronically in the portal and may be uploaded from the location of verification itself through "GST FIELD VISIT" APP. This App is free download....
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....guided by Circular No.25/2018 (No. CT/GST15/2017/196 dated 29.10.2018) issued from this office as per decision of GST Council to guide the jurisdictional officers to process cancellation application. You may rely on several training programs so far imparted to you in this regard. The detailed presentation made through a VC on 2nd August, 2018 would be also of much help. This matter has been repeated many times in subsequent VCs. The PPT gives an Illustrative step by step guidelines on suo-motu cancellation of registration for ready reference. In this regard you may refresh your memory about the following contents of the Circular No.25/2018 (No. CT/GST-15/2017/196 dated 29.10.2018): Para: 5: "Since the cancellation of registration has no effect on the liability of the taxpayer for any acts of commission/omission committed before or after the date of cancellation, the Proper officer should accept all such applications within a period of30 days from the date of filing the application." Para: 7: Section 45 of the Assam GST Act requires every registered person whose registration has been cancelled, to file a final return in FORM GSTR-10, within three months of the e....
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....lation along with continuance of the conditions specified in clauses (b) and (c) of sub section (2) of section 29 of the Assam GST Act shall be deemed to be "deficiency" within the meaning of sub-rule (2) of rule 9 of the Assam GST Rules. The proper office may compare the information pertaining to earlier registration with the information contained in the present application, grounds on which the earlier registration(s) were cancelled and the current status of the statutory violation of which the earlier registration(s) were cancelled. The data may be verified on common portal by fetching the details of registration taken on the PAN mentioned in the new application vis-å-vis cancellation of registration obtained on same PAN." It is felt necessary to refresh the provisions for cancellation of registration as prescribed in the GST law for your ready reference: Section 29(1) 1. Business that has been discontinued 2. Transfer of business 3. Death of proprietor 4. Amalgamation with other legal entity 5. Demerger 6. Otherwise disposed of business 7. Change in constitution of business 8. No longer liable t....
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....made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the following modes: (a) the proper officer may deduct or may require any other specified officer to deduct the amount so payable from any money owing to such person which may be under the control of the proper officer or such other specified officer. (b) the proper officer may recover or may require any other specified officer to recover the amount so payable by detaining and selling any goods belonging to such person which are under the control of the proper officer or such other specified officer. (c) (i) the proper officer may, by a notice in writing, require any other person from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the Government either forthwith upon the money becoming due or being held, or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount. It means that the l....
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....ssue SCN in FORM GSTR-3A in case of cancellation u/s 29(1) (voluntary) • Issue SCN in FORM GST ASMT-14 u/s 63 in case of non-payment of liability after cancellation u/s 29(2) (Suo-moto) • Issue assessment order in FORM GST ASMT-15 u/s 63 in case of non-payment of liability after cancellation u/s 29(1) or 29(2) If still liability not paid: • Automatically after 90 days, a demand id will be created against such defaulters. • The Proper officer will proceed u/s 79 for recovery proceeding • The Proper officer will issue FORM GST DRC-09 to FORM GST DRC-19 as per the requirement in order to recover the dues. It is observed that there are many taxpayers who have filed their GSTR-3B returns but yet to file their GSTR-I returns. As a result, Assam is displaying a very poor rate of return filing in the following table: GSTR-1 RETURN FILING Month Taxpayer eligible for GSTR-1 GSTR-1 filed till 31^st May,2019 Percentage April, 18 68,215 35,074 51.42% May, 18 70,090 35,492 50.64% June,18 1,34,911 83,577 61.64% July,18 72,660 36,104 49.69% August, 18 73,698 ....
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....s, block the ITC to disable them from filing further GSTR-3B returns. • Send SCN in GSTR FORM 3A u/s 46 of the Acts through email to initiate assessment of non-filers. • Take enforcement measures. Please note that in a recent urgent joint meeting of both Central & State GST officers in presence of Principal Commissioner of Central GST and Commissioner of State GST, Assam held on 15 th October,2019, it is resolved that : • It has now become imperative to have a working coordination at the district level for enhancing the compliance rate in return filing. • The taxpayers who have not filed returns continuously for six months and three quarters for composite taxpayers, their registration may be cancelled suo-moto. • The field level officers would be asked to check genuineness of registration with physical verification. • To create awareness among the officers and taxpayers about revocation of cancellation. It has brought us to a common platform with the Central GST officers to work for a common goal to enhance return filing. Therefore, you are required to do the following: • Hold a joint m....
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....on have been made (to be submitted circle and circle in charge wise by the unit office on monthly basis) Annexure-C: Monthly action taken report of Inspector of Taxes on field verification (to be submitted circle and area Inspector wise by the Unit Office on monthly wise.) In order to receive the statements, a separate web-mail address is created at Apex office and the address is [email protected]. The statements are required to be sent at this web-mail only. The statements must be sent in the attached template excel sheets. You are required to download the attached template excel sheets and use only these sheets for the purpose. If statements are furnished in another form like self-created excel sheets or MS Word files, such statements shall be summarily rejected and the Unit office shall be asked to send in correct form only. • Assistant Commissioner of State tax/Superintendent of State tax are directed to work in tandem with their jurisdictional Inspector of State tax. • Zonal Deputy Commissioner of State tax are directed to hold regular review of the Unit. Any deviation in compliance of the directions stated in this circular will be v....