Recently, the Patna High Court bench of Chief Justice Sanjay Karol & Justice S Kumar has held that the order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences.
In Rakesh Roshan vs Commissioner of State Tax, the petitioner’s proceedings were ex parte in nature. He has prayed for quashing of the below notices & order received,
The court held that the assessing authority shall pass a fresh order only after affording adequate opportunity to all concerned, including the writ petitioner and during pendency of the case, no coercive steps shall be taken against the petitioner.
Cancellation of GST Registration means the permanent closure of the GSTIN of the taxpayer.
After cancellation the taxpayer will not be a GST registered person any more and hence will not have to pay or collect GST or claim ITC anymore and accordingly, need not file GST returns. .
Taxpayers would be free from filing returns or upload invoices for the period after the date of cancellation mentioned in the cancellation order.
The registration can be canceled by filing an application on the GST Portal citing the appropriate reason
In certain circumstances, the registration is canceled by the tax officer in cases such as non-filing of returns, fraud, contravention of provisions of GST Act etc.
GST REG 16
When the taxpayer himself applies for the cancellation of registration, the application for cancellation has to be made in form GST REG 16.
GST REG 17
An authorized GST officer can provide the notice of show cause/cancellation to the registered taxpayer and its business entity by using the REG 17 form requiring him to show cause, within a defined time period from the date of the service of such notice, citing reason on why his registration shall not be canceled.
GST REG 18
The show cause notice can be replied by the means of furnished GST REG 18 form under the specified time period. Taxpayers must reply to the notice within 7 days of issuance of the notice giving the explanation or citing valid reasons of safeguarding the cancellation of registration.
GST REG 19
The GST REG 19 form is used by a GST officer for issuing a formal order for the cancellation of GST registration. The order for sending the notice must be under 30 days from the date of application or the response date in GST REG 18 form.
GST REG 20
The show cause notice when satisfied by the GST officer or the reply is found to be acceptable, the proper officer will drop the proceedings and pass an order in form GST REG–20.
GST REG 21
This form is used for applying for revocation of cancellation of GST
The GST REG 22 form is used for giving the order for revocation of cancellation of GST Registration
This is a show cause notice for rejection of application for revocation of cancellation of GST Registration.
This form is used for replying to the notice for rejection of application for revocation of cancellation of registration
➤ The registered taxable person does not conduct any business from the declared place of business
➤ The registered person has contravened any provisions of the Act or the rules made thereunder.
➤ Taxpayers registered under Composition Scheme has not furnished returns for three consecutive tax periods
➤ Utilization of ITC from electronic credit ledger to discharge more than 99% of the tax liability for specified taxpayers violating Rule 86B – with the total taxable value of supplies exceeding Rs.50 lakh in the month, with some exceptions
➤ Any person who has taken voluntary registration but doesn’t start business within 6 months from the date of registration.
➤ Taxpayer issues invoice or bill without supply of goods/services in violation of the provisions of this Act, or the rules made thereunder
➤ Taxpayer violates the anti-profiteering provisions (for example, not passing on benefit of ITC to customers)
➤ If found that the registration has been obtained by means of fraud, willful misstatement or suppression of facts.
➤ Taxpayer avails input tax credit in violation of the provisions of section 16 of the Act or the rules.
Any registered taxable person can apply for revocation of cancellation of GST registration within a period of 30 days from the date of service of order of cancellation of GST registration. It must be noted that the application for revocation can be done only during the circumstances when the registration has been canceled by the proper officer on his own motion and cannot be used when GST registration was canceled voluntarily by a taxpayer.