SUO MOTO CANCELLATION OF REGISTRATION UNDER GST BY PROPER OFFICER - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

10. SUO MOTO CANCELLATION OF REGISTRATION UNDER GST BY PROPER OFFICER 10.1 The proper officer may cancel the registration of taxable person from such date, including any retrospective date, as he may deem fit, where- the registered taxable person has contravened the provisions of the Act or the rules made thereunder, as may be prescribed; or a person paying tax under Section 10 [Composition Scheme] has not furnished the return for a financial year beyond three months from the due date of furnishing the said return; or any taxable person, other than a person under a Composition Scheme who has not furnished returns for continuous period of six months. any person who has taken voluntary registration under Section 25(3) of the CGST Act,2017 has not commenced business within six months from the date of registration; or registration has been obtained by means of fraud, wilful misstatement or suppression of facts as per Section 29(2) of CGST Act, 2017. 10.2 Superintendent of Central Tax has been specified as proper officer for this purpose vide CBEC Circular No. 1/1/2017 dated 26.06.2017 and can suspend the registration as per Section 29(2) of CGST Act, 2017. 10.3 Opportunity of hearing before cancellation of registration - The proper officer shall not cancel the registration without granting the person an opportunity of being heard as per Section 29(2) of CGST Act, 2017. 10.4 Procedure for Suo moto cancellation of registration - If the proper officer has reasons to believe that the 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 seven working days from the date of service of such notice as to why his registration should not be cancelled as per Rule 22(1) of CGST Rules, 2017. 10.5 The reply to the show cause notice issued shall be furnished in FORM GST REG-18 within seven days as per Rule 22(2) of CGST Rules, 2017. The proper officer shall drop the proceedings, if the reply is found to be satisfactory and pass an order in FORM GST REG-20 as per Rule 22(4) of CGST Rules, 2017.