How to reply notice for cancellation under GST?


Under GST, Notices act as a medium to communicate to the taxpayers by the GST Authorities. These are sent to the taxpayers specifically to remind or caution them of any defaults being noticed, specifically for not following the GST laws and provisions. Taxpayers must promptly act or reply to notices within the prescribed time limit. Any failure to do so can land the taxpayer in a legal soup.

In this article, we’ll talk about the process to reply to the GST registration cancellation notice issued by the proper officer and the reasons which can give rise to such situations. Form GST REG-18 is used when a registered taxpayer has to file a reply to the show-cause notice issued by authorities for cancellation of his/her GST registration. The form can be filed online on the GST Portal.

Reasons for receiving notice in Form GST REG-17

If the proper officer has valid reasons to believe that the GST registration of a person is liable to be cancelled under section 29, he shall issue a notice to such person in Form GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, citing reason on why his registration shall not be cancelled.

The proper officer can initiate the cancellation proceedings if any of these circumstances arise:

↪ In the case of non-filing of returns by a taxpayer registered under the composition scheme for three straight years.

↪ Non-filing of returns for six continuous periods by a taxpayer other than composition taxpayer.

↪ In case an individual has taken voluntary GST registration but has not started a business within six months of registration.

↪ Violation of any provisions of the GST Act or Rules by a taxpayer.

↪ Using fraud or falsification methods to obtain GST registration

↪ Taxpayer avails input tax credit in violation of the provisions of section 16 of the Act or actions related to tax evasion

↪ In case a taxpayer fails to pay tax, interest or penalty to the GST department within three months from the date of such payment.

 ↪ Closure of business of the taxpayer.

↪ Death of sole proprietor.

↪ Change in constitution of the taxpayer leading to change in PAN.

↪ The concerned person is no longer required to be registered under GST or required to collect or pay tax.

↪ Transfer of business due to merger or amalgamation.

Responding to the notice issued in Form GST REG-17

Form GST REG-18 is to be filed in response to a notice received by the taxpayer for the cancellation of his/her GST Registration. Taxpayers must reply to the notice within 7 days of issuance of the notice giving the explanation or citing valid reasons for safeguarding the cancellation of registration.

Coverage of reply in Form GST REG-18

The reply in Form GST REG-18 shall cover the following details-

↪ The reference number of the notice issued in Form GST REG-17.

↪ Date of issue of notice in Form GST REG-17.

↪ GST registration number of the person.

↪ Legal name Trade name(if any) of the business

↪ Reply to the notice including supporting documents.

↪ Verification box.

Filing online reply in Form GST REG-18

According to the provisions, on receipt of the notice in Form GST REG-17, if aggrieved, the taxpayer needs to file the appropriate reply. Such reply is to be filed online and in Form GST REG-18.

Following steps should be followed for filing an online reply in Form GST REG-18-

STEP 1 – Visit the GST Portal site www.gst.gov.in and log into your taxpayer account by entering your username and password details.

STEP 2 – Select as given- Services > Registration > Application for Filing Clarifications.

STEP 3 – Enter the available Reference Number of Notice or Application Reference Number (i.e. ARN).

STEP 4 – By clicking the ‘Search’ button, Form GST REG-18 will be displayed on the page.

STEP 5 - Provide your reply on the page, including relevant supporting documents.

STEP 6 - Click ‘Submit’ when you’re done.

Final Words

The proceedings will be dropped by the officer if the reply is found to be acceptable and he/she’ll pass an order in form GST REG–20. But if the registration is no longer liable or the person’s GST registration is liable to get cancelled, the proper officer shall issue an order in Form GST REG-19, within a period of thirty days from the date of application submitted or the date of the reply to the show cause, cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay tax or any interest or penalty including the amount liable to be paid under sub-section (5) of section 29.


SuperCa

Comments

Post a Comment

Popular posts from this blog

Why is GST Return Important? Is it Necessary To File GST Returns Every Month?

Image
What GST Return Is? GST return is a document that contains all the details of sales, purchases, tax collected on sales, and tax paid on purchases. Once you file GST returns, you will need to pay the resulting tax liability i.e money that you owe the government. The details of sales and purchases of the goods and services plus the tax paid and collected have to be furnished by all registered individuals, traders, organizations, and companies. Such details are submitted by filing a GST Return and on this, the tax authorities calculate tax liability. The registered GST user will have to file the return, including purchases, sales, output GST, and input credit of GST. A registered user has to submit 4 forms to file their GST return: return for purchases, return for sale/supplies, monthly return, and annual return. Quarterly returns are to be submitted by those who have opted for the composition scheme. Importance of   GST Return filing All the Registered Dealers are required to file GS...
Read more

What has happened in 4 Years of GST?

Image
  On 1st July 2021, the Goods and Services Tax (GST) completed its four years and celebrated it by flagging the ease it brought to businesses and the relief on the tax burden to consumers. GST implementation in India was a historical move, as it marked a  s ignificant indirect tax reform in the country. The amalgamation of many taxes levied at a central and state level into a single tax was expected to have big advantages. Four years ago, on this day, GST had replaced 17 local levies like excise duty, service tax, VAT and 13 cesses. One of the most important benefits of the move is the lessening of double taxation or the removal of the cascading effect of taxation. It is now paving the way for a common national market and Indian goods are also expected to be more competitive in international and domestic markets. Pros. On this occasion, the Union Finance Ministry has notified a cut in the GST rates on 400 goods and 80 services, thus giving a big relief to the common citizens o...
Read more

Difference between General Partnership firm and Limited Liability Partnership

Image
In businesses, the partnership is an association of two or more people, who agree to carry on the business together by combining their financial funds and managerial abilities and skills and share its profits and losses. The most used partnership types are   General Partnership   and   Limited Liability Partnership (LLP) A  General Partnership firm  is registered by two or more persons by executing a partnership deed with each other. Even though this form of business is governed under the Indian Partnership Act 1932, the partners are at free will to decide on various terms pertaining to the share of profits and other related matters. In India normally all partnership firms are general partnerships.   Limited Liability Partnership  is an alternative business form that provides limited liability to the owners and is comparatively easy to manage and hassle-free. It is allowed under the Limited Liability Partnership Act, 2008. LLP is a unique hybrid combin...
Read more