Question ID : 44808

082701

Asessee had applied for cancellation of GST registration in June 24 After issuing a notice for clarification (As in 19-20 input claimed was more in GSTR 3B compared to GSTR 2A) after our reply which pointed to Input less caimed in FY 20-21 in GHSTR 3B v GSTR 2A However Cancellation request was denied Another application for cancellation was made in July 24 Though registration was suspended and return filing was not required. Till date cancellation has not been made Whether is any rule of automatic cancellation after long delay

Answer ID : 85705

There is no specific provision under the GST law for automatic cancellation of registration after a long delay in processing the cancellation application. However, the relevant provisions regarding cancellation and suspension of GST registration are as follows: 1. Rule 22 of CGST Rules, 2017: > The proper officer is required to process the application for cancellation within 30 days from the date of application or receipt of reply to a show-cause notice. >If the proper officer does not take any action within the prescribed time, the registration shall remain active until an order is passed?. 2. Rule 21A of CGST Rules, 2017 (Suspension of Registration): > If an application for cancellation is submitted by the taxpayer, the registration is deemed to be suspended until the final order of cancellation is passed. > This means that no returns need to be filed or taxes need to be paid during the suspension period?. 3. Circular 69/43/2018-GST (as amended by Circular 88/07/2019-GST): > If an application for cancellation is not disposed of within the prescribed period, taxpayers may follow up with the jurisdictional officer. > The law does not specify an automatic timeline beyond which the registration will stand cancelled?. 4. Section 29(2) of CGST Act, 2017: Provides for cancellation of registration in cases where: > The registered person fails to file returns for six consecutive months (or two tax periods for QRMP taxpayers). > The business is discontinued or transferred. > The registration was obtained fraudulently?. What You Can Do: 1. Since the registration has not yet been canceled despite the application, you should follow up with the jurisdictional GST officer and request an expedited decision. 2. If the delay continues, you may file a grievance on the GST portal or escalate the issue with the CBIC helpdesk. 3. If necessary, you can approach the High Court through a writ petition seeking directions for cancellation.

Answer ID : 85708

No such provision for automatic cancellation....you may move the High court by writ if you really wish cancellation

Answer ID : 85713

No automatic cancellation time, contact jurisdiction officer

---