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The addition of the provisions with respect of suspension of GST Registration to monitor the GST registered taxpayer. With the introduction of these provisions, anyone who has applied for cancellation of GST Registration, will be unbound to comply with the GST return filing procedure during the period of suspension, in so doing it reduces the cost of compliance for the taxpayer.
GST stands for Goods & Services Tax, which is an indirect tax and it replaced many direct taxes like VAT, excise duty, etc. The GST Act was passed on 29th March, 2017 w.e.f 1st July, 2017.
Benefits of GST
The Indian Government introduced a new concept of suspension of GST Registration. Rule 21A of the GST Rules 2017[1] that deals with suspension.
Sub- rule 2A of rule 21A of the GST Rules states that if any proper officer finds any differences by:
The officer needs to issue Form GST REG-31 to intimate the taxpayer of the discrepancies. He also has to mention that the GST registration may be cancelled, if the proper explanation is not given.
The officer can order for suspension under Rule 21A (2A), if he is not satisfied with the furnished information. The suspension can be lifted upon the receiving of a satisfactory reply from the taxpayer.
As per the rule 21A the period for suspension can be:
Effect of suspension of GST Registration
Once a person’s GST is suspended, he:
The reduction in the compliance is an advantage in the whole process of the suspension of GST Registration enjoyed by the taxpayer.
With the introduction of these provisions, anyone who has applied for cancellation of GST Registration will be unbound to comply with the GST return filing procedure during the period of suspension, in so doing it reduces the cost of compliance for the taxpayer.
The suspension will be done in the following manner:
Notably, Form GST REG-31 is not available on the GST portal and accordingly the suspension notice/ intimation, for the time being, would be available in Form GST REG-17.
The suspension can be revoked after completion of GST registration cancellation proceedings. The revocation of suspension would be effective from the date the suspension has come into effect.
GST is the only indirect tax applicable since 2017 and it is important to know the intricacies of the concept. The article talks about the suspension , its grounds, effect and the duration. It also talks about the process by which GST Registration can be suspended by the officer.
Read our article:How to Change GST Registration details of a business in Easy Steps
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