CBIC Issues SOP for Suspension of Registrations Basis Discrepancies

The Rule specifies that taxpayer's registration shall be suspended and system-generated intimation of suspension and notice of cancellation of registration shall be intimated vide Form GST REG-31. However, as the functionality of GST REG-31 has not been made operational yet, CBIC has provided following guidelines for implementing provisions of suspension of registrations, as follows:

• The notice/intimation of suspension of registration shall be made available to the taxpayer on their dashboard on the common portal in Form GST REG-17.
• The taxpayers, whose registrations are suspended would be required to furnish a reply in Form GST REG-18 to the jurisdictional tax officer within 30 days from the receipt of such notice and shall furnish the details of compliance and the reasons as to why their registration should not be cancelled.
• Post examination of the response, the Officer may pass an order either for dropping the proceeding for suspension/ cancellation of registration in the Form GST REG-20 or cancellation of registration in Form GST REG-19. Based on the proper Officer's action, the GSTIN status would be changed to 'Active' or 'Cancelled Suo-moto' as the case may be.

In conclusion, as per the Rule, the suspension and cancellation of GST registrations are to be intimated through Form GST REG-31, which is currently not operational. However, CBIC has provided guidelines for implementing the suspension provisions, including the issuance of intimation in Form GST REG-17 and the requirement for taxpayers to respond in Form GST REG-18 within 30 days. Based on the response, the Officer will pass an order in Form GST REG-20 or GST REG-19, resulting in the change of GSTIN status to 'Active' or 'Cancelled Suo-moto' accordingly.

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Disclaimer:The information given above is to provide general guidance to the readers. This information should not be sought as a substitute for legal opinion