The CBIC vide Notification No. 20/2024 – Central Tax dated October 08, 2024 has substituted and inserted the following Forms:
In the said rules, for FORM GST REG-20, the following form shall be substituted, namely:-
Form GST REG-20
[See rule 22(4)]
Reference No.- ZA260821000033A
Date: DD/MM/YYYY
To
<Taxpayer Name>
<Taxpayer Address>
GSTIN/ UIN: <GSTIN number>
Show Cause Notice No.: <SCN number> Date: DD/MM/YYYY
Order for Dropping the Proceedings for Cancellation of Registration
This has reference to your reply filed vide ARN ———- dated in response to the show cause notice referred to above. Upon consideration of your reply and/or submissions made during hearing, the proceedings initiated for cancellation of registration stands vacated for the following reasons:
<text>
Or
This is in reference to Notice issued in REG-31 vide Reference Number dated DD/MM/YYYY for contravention of provisions of rule 10A of the Central Goods Services Tax Act, 2017 (12 of 2017).
Since you have furnished the valid details of bank account on the common portal in the system, the proceedings initiated for cancellation of registration are hereby dropped.
Or
This is in reference to Notice issued in REG-31 vide Reference Number dated DD/MM/YYYY, for contravention of the provisions of clause (b) or clause (c) of sub-section (2) of section 29 of the Central Goods Services Tax Act, 2017 (12 of 2017). Since you have filed all the pending returns which were due on the date of issue of the aforesaid notice, and have made payment of self-assessed tax, the proceedings initiated for cancellation of registration are hereby dropped.
Suspension of the registration stands revoked with effect from DD/MM/YYYY
Signature
< Name of the Officer>
Designation
Jurisdiction Place:
Date:”.
In the said rules, in FORM GST REG-31, after paragraph 6, the following shall be inserted, namely: –
“OR
SUSPENSION DUE TO VIOLATION OF RULE 10A
1. It has been noticed that as per the provisions of rule 10A, requiring you to furnish the details of bank account within thirty days from the grant of registration, you have not furnished the valid details of bank account within thirty days from the date of grant of registration.
2. The discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.
3. Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of rule 21A.
4. Accordingly, you are requested to furnish the valid details of bank account on the common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this notice, providing explanation to the above stated discrepancy or anomaly or contravention. Any possible misuse of your credentials on GST common portal, by any person, in any manner, may also be specifically brought to the notice of jurisdictional officer.
5. The suspension of registration shall be lifted after you furnish the valid details of bank account on the common portal within stipulated time.
6. You may please note that your registration may be cancelled in case you fail to furnish the valid details of bank account on the common portal within stipulated time or fail to furnish a reply within the stipulated time.
OR
1. It has been noticed that as per the provisions of rule 10A, requiring you to furnish the details of bank account within thirty days from the grant of registration. The information regarding bank account details furnished by you are not matching with the details available with bank.
2. These discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017(12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.
3. Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of rule 21A.
4. Accordingly, you are requested to furnish the valid details of bank account on the common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this notice, providing explanation to the above stated discrepancy or anomaly or contravention. Any possible misuse of your credentials on GST common portal, by any person, in any manner, may also be specifically brought to the notice of jurisdictional officer.
5. The suspension of registration shall be lifted after you furnish the valid details of bank account on the common portal within stipulated time. 6. You may please note that your registration may be cancelled in case you fail to furnish the valid details of bank account on the common portal within stipulated time or fail to furnish a reply within the stipulated time.
OR
SUSPENSION DUE TO VIOLATION OF RULE 21
1. It has been noticed that as per the provisions of clause (h) or clause (i) of rule 21, requiring you to file return under sub-section (1) of section 39, have not furnished for a continuous period of six months or for a continuous period of two quarters.
2. These discrepancies or anomalies prima facie indicate contravention of the provisions of the Central Goods and Services Tax Act, 2017(12 of 2017) and the rules made thereunder, such that if not explained satisfactorily, shall make your registration liable to be cancelled.
3. Considering that the above discrepancies or anomalies are grave and pose a serious threat to interest of revenue, as an immediate measure, your registration stands suspended, with effect from the date of this communication, in terms of sub-rule (2A) of rule 21A.
4. Accordingly, you are requested to file return under sub-section (1) of section 39 on the common portal or submit a reply to the jurisdictional tax officer within thirty days from the receipt of this notice, providing explanation to the above stated discrepancy or anomaly or contravention. Any possible misuse of your credentials on GST common portal, by any person, in any manner, may also be specifically brought to the notice of jurisdictional officer.
5. The suspension of registration shall be lifted after you file the returns under sub-section (1) of section 39 on the common portal.
6. You may please note that your registration may be cancelled in case you fail to file returns under sub-section (1) of section 39 on the common portal within stipulated date or fail to furnish a reply within the stipulated time.”
Our Comments:
The CBIC brings significant updates to the GST registration process, particularly in relation to the cancellation or suspension of GST registrations. The revised Form GST REG-20 provides a structured mechanism for communicating the dropping of cancellation proceedings if valid replies or actions are made by the taxpayer, such as furnishing bank details or filing pending returns. It emphasizes procedural transparency, making it easier for taxpayers to understand and address any issues raised by the tax authorities.
The amendments to Form GST REG-31 introduce specific provisions for suspending registration due to non-compliance with Rule 10A (failure to furnish valid bank account details within 30 days of registration) and Rule 21 (failure to file returns under Section 39 for six months or two quarters). These changes ensure swift action by suspending the GST registration if discrepancies are found, safeguarding government revenue. However, taxpayers are given the opportunity to rectify issues, explain discrepancies, or file returns to lift the suspension, thus promoting compliance while maintaining fairness. This overhaul strengthens the GST framework, enhancing accountability and safeguarding the interests of the revenue while providing clear steps for taxpayers to rectify their non-compliance.
The Notification can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/CBIC_notified_the_Central_Goods_and_Services_Tax_%28Second_Amendment%29_Rules%2C_2024..pdf