Verification of applications for grant of new registration - GST - States - Circular No. 05/2022

File No.ET-GST1017/174/2021-O/o AETC-SAS Government of Punjab Department of Excise and Taxation Circular No. 05/2022( Circular No.95/14/2019-GST ) Patiala, Dated: 21.03.2022 To, All Additional Commissioners of State Tax / Joint Commissioners of State Tax / Deputy Commissioners of State Tax/ Assistant Commissioners of State Tax / State Tax Officers , Punjab Subject: Verification of applications for grant of new registration Reg. Recently, a large number of registrations have been cancelled by the proper officer under the provisions of sub-section (2) of section 29 of the Punjab Goods and Services Act, 2017 (hereinafter referred to as PGST Act )read with rule 21 of the Punjab Goods and Services Rules, 2017 (hereinafter referred to as PGST Rules ) on account of non- compliance of the said statutory provisions. In this regard, instances have come to notice that such persons, who continue to carry on business and therefore are required to have registration under GST, are not applying for revocation of cancellation of registration as specified in section 30 of the PGST Act read with rule 23 of thePGST Rules. Instead, such persons are applying for fresh registration. Such new applications might have been made as such person may not have furnished requisite returns and not paid tax for the tax periods covered under the old/cancelled registration. Further, such persons would be required to pay all liabilities due from them for the relevant period in case they apply for revocation of cancellation of registration. Hence, to avoid payment of the tax liabilities, such persons may be using the route of applying for fresh registration. It is pertinent to mention that as per the provisions contained in proviso to sub-section (2) of section 25 of the PGST Act, a person may take separate registration on same PAN in the same State. 2. In order to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, in exercise of its powers conferred by section 168 (1) of the PGST Act, hereby issues the following instructions. 3. Sub-section (10) of section 25 of the PGST Act read with rule 9 of the PGST Rules provide for rejection of application for registration if the information or documents submitted by the applicant are found to be deficient. It is possible that the applicant may suppress some material information in relation to earlier registration. Some of the information that may be concealed in the application for registration in FORM GST REG -01 are S. No. 7, Date of Commencement of Business , S. No. 8, Date on which liability to register arises , S. No. 14, Reason to obtain registration etc. Such persons may also not furnish the details of earlier registrations, if any, obtained under GST on the same PAN. 4. It is hereby instructed that the proper officer may exercise due caution while processing the application for registration submitted by the taxpayers, where the tax payer is seeking another registration within the State although he has an existing registration within the said State or his earlier registration has been cancelled. It is clarified that not applying for revocation of cancellation of registration along with the continuance of the conditions specified in clauses (b) and (c) of sub-section (2) of section 29 of the PGST Act shall be deemed to be a deficiency within the meaning of sub-rule (2) of rule 9 of the PGST Rules. The proper officer may compare the information pertaining to earlier registrations with the information contained in the present application, the grounds on which the earlier registration(s) were cancelled and the current status of the statutory violations for which the earlier registration(s) were cancelled. The data may be verified on common portal by fetching the details of registration taken on the PAN mentioned in the new application vis-a-vis cancellation of registration obtained on same PAN. The information regarding the status of other registrations granted on the same PAN is displayed on the common portal to both the applicant and the proper officer. Further, if required, information submitted by applicant in S. No. 21 of FORM GST REG-01 regarding details of proprietor, all partner/Karta/Managing Directors and whole time Director/Members of Managing Committee of Associations/Commissioner of Trustees etc. may be analysed vis- -vis any cancelled registration having same details. 5. While considering the application for registration, the proper officer shall ascertain if the earlier registration was cancelled on account of violation of the provisions of clauses (b) and (c) of sub-section (2) of section 29 of the PGST Act and whether the applicant has applied for revocation of cancellation of registration. If proper officer finds that application for revocation of cancellation of registration has not been filed and the conditions specified in clauses (b) and (c) of sub-section (2) of section 29 of the PGST Act are still continuing, then, the same may be considered as a ground for rejection of application for registration in terms of sub-rule (2) read with sub-rule (4) of rule 9 of PGST Rules. Therefore, it is advised that where the applicant fails to furnish sufficient convincing justification or the proper officer is not satisfied with the clarification, information or documents furnished, then, his application for fresh registration may be considered for rejection. 6. Difficulty, if any, in the implementation of these instructions may be brought to the notice of the Head Quarter. Nilkanth S. Avhad Commissioner of State Tax