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How Does Suo Moto GST Cancellation Work

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The tax officer’s decision to cancel a GST registration is referred to as suo moto cancellation. Continue reading to hear more about Suo Moto’s cancellation of the GST.

Suo moto refers to the tax officer’s own initiative and describes the cancellation of a GST registration. The tax officer must have good cause as described in Section 29(2) of the CGST Act in order to begin the cancellation procedures.

Reasons for Suo Moto GST Cancellation

Suo Moto – Any of the grounds stated in the provisions of the GST law may be used by the officer to start the cancellation of registration, including:

  • With no intention of evading taxes through the use of invoices or the provision of any goods or services.
    Anyone who hasn’t filed a return for a continuous six months who isn’t a composition taxpayer
    The seller of compositions has gone three tax periods without submitting returns.
  • Any invoice or bill that is issued in contravention of the GST rules without the provision of goods or services will result in an incorrect use of an input tax credit or a tax refund.
  • No matter how much tax is collected, it must be paid to the federal or state government within three months of the due date.
  • refuses to pay back any taxes, interest, or other costs to the federal or state government.

or fines three months after the day they become owing.

  • No longer required for an individual to be registered for GST
  • In any case, it is determined that a GST Practitioner breached the GST Law.
  • closure or termination of business Constitutional modification leading to PAN modification

Taxation no longer applied to this.

  • a company that is disposed of in some other way, such as by sale, leasing, merger, or acquisition.
  • Death of the Single Owner
  • Deception, deliberate false claims, omission of information, etc. were used to get registration.

How will the taxpayer be informed about Suo Moto Cancellation under GST?

  • This will be sent to the taxpayer via email and text message. An order to withdraw the GST registration will be sent through email and SMS to the principal authorised signatory.
  • On the taxpayer’s dashboard, the order will be displayed, printable, and downloaded.

The Opportunity of Being Heard

Without giving the taxpayer a Show Cause Notice (SCN) and a reasonable opportunity to be heard by the officer, registration cannot be cancelled.

To start the Suo Moto cancellation process, the Tax Official must serve the taxpayer with a SCN. The reason why his/her registration shouldn’t be cancelled will be questioned by officials.

What Effects would the Cancellation of Suo Moto have?

  • The GSTIN/UIN/GSTP ID’s status will switch from “Proceeding for Cancellation initiated” to “Inactive,” and the other pertinent Tax Authority will be notified.
  • The taxpayer will not be permitted to file the return or upload invoices after the cancellation date mentioned in the cancellation order.
  • The taxpayer won’t be able to alter the registration information once the cancellation order has been issued. Email addresses and phone numbers, however, can still be changed until the debt or refund is settled.

For the cancelled registration, the option to apply for revocation will be available.

After getting a notice of cancellation, what choices does the taxpayer have?

The Taxpayer shall provide a response within the statutory time period (SCN) within 7 working days of the date of receipt of the Show Cause Notice.

  • If the taxpayer’s response satisfies the officer,
  • The proceedings could be stopped.
  • The primary authorised signatory will receive notifications of SCN’s cancellation by SMS and email.
  • The dashboard of the taxpayer will have access to the order for viewing, printing, and downloading.
  • The “Suspended” status of GSTIN will change to “Active.”

If no response is given within the stipulated 7 working days, the official may continue with the cancellation of registration.

What Actions are Permitted on the GST portal after the Suspension of the GSTIN?

The status of the GSTIN will shown as “Suspended” when a taxpayer seeks to have their registration cancelled or when a Suo Moto cancellation has been initiated by the Tax Officer.

After GST is suspended, a taxpayer may do the following tasks on the GST website:-

  • Filing of appeal
  • Making payment
  • Filing for refunds
  • Only for the time frame before the registration suspension may you file a return or upload invoices.
  • Response to orders/notices related to assessment/recovery/enforcement/related matters, non-core amendment, etc.

When does the suspension of the GST take effect?

if a taxpayer demands the cancellation of their registration. Their cancellation request was made on the day when their registration was put on hold.

If Suo Moto GST Cancellation has been started by the GST officer, the date of suspension will be the day on which SCN for cancellation of registration is given.

Can earlier period returns be filed after a Suo Moto cancellation of the GST registration?

Returns for the prior period after Suo Moto GST Cancellation. Prior to the cancellation order’s indicated cancellation date, it should be completed.

However, the taxpayer won’t be able to upload invoices or file returns for that time period.

the date after which the cancellation order’s cancellation date was provided.

Additionally, after the cancellation date mentioned in the cancellation order, GSTP will not be permitted to carry out GSTP obligations on your behalf for a certain period of time.

How can the GSTIN’s “Suspended to Active” status be changed?

The GSTIN’s status won’t change from “Suspended” to “Active” until the officer rejects the application for cancellation of registration or until the Suo Moto cancellation process is terminated following a hearing.

Once the status of his GSTIN is changed from “Suspended” to “Active,” a taxpayer will once again be considered as an active taxpayer and will have immediate access to all the features offered to active taxpayers on the GST Portal.


After reading the aforementioned details, maybe one has a clearer idea of how the Suo Moto GST Cancellation functions.


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