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TMI BlogCancellation/Deregistration of GSTIN as per provisions of Assam GST Act.X X X X Extracts X X X X X X X X Extracts X X X X ..... VC) and shared presentation expecting the Proper officers to become proactive in cancellation of inactive GSTIN. In this regard, it may be referred to Circular No.25/2018 (No. CT/GST15/2017/196 dated 29.10.2018) issued from this office as per decision of GST Council to guide the jurisdictional officers to process cancellation application. You may recall several training programs so far imparted to you in this regard. The detailed presentation made through a VC on 2nd August, 2018 would have been a guiding documents for your ready reference. This matter has become prime point of discussion in subsequent VCs also. Time and again, this Commissionerate pressed upon you to understand the adverse consequence of keeping such inactive GSTIN alive. These GSTIN are creating administrative inconvenience in following manners: These GSTINs are not contributing any revenue to the state. These GSTIN are affecting adversely the Tax-officers-taxpayer's ratio and administrative efficacy. The existence of such inactive GSTIN are causing overall low return filing ratio. But, it is very disappointing to see that the Unit offices have not put any effort to cleanse thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 87 80 84 All India 59 81 63 80 65 79 68 74 The poor performance is taken so seriously by the government that now onward Hon'ble Finance Minister, Chief Secretary, Principal Secretary (Chief Minister's Office) and Principal Secretary, Finance will hold regular meeting with the Commissionerate of Taxes, Assam to review progress and performance in improvement on rate of return filing. If the return filing trend of the taxpayers is closely analyzed and it is found that around 74% taxpayers regularly or lately file their GSTR-3B returns. Further analysis reveals that there are around 25% taxpayers who have never filed any returns which may be assumed to be inactive or inoperative. The Commissionerate has presumed that in addition to some willful defaulters, there are many non-filers who have come out of GST ambit for the following reasons: 1. Migrated from earlier Acts but now having turnover less than 40 lakhs: Under VAT, the threshold limit for registration was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may cancel registration of any person who has taken voluntary registration under section 25(3) but has not commenced business within six months from the date of registration. Therefore, the provisions to be invoked and such registration should be cancelled as per law. 5. Change in PAN Card: It is often seen that during VAT, the PAN card of an individual was submitted in case of partnership or company. The firm got migrated with that submitted PAN from earlier Acts to GST. Later on, the taxpayer applied for change in PAN. Consequently, a new GSTIN was granted to the firm. Change of PAN card from individual to partnership or company took place, but not cancelled the original PAN based GSTIN with an impression that earlier GSTIN would got cancelled automatically. Action to be taken by Unit office: Identify such taxpayers with help of the PAN card records of the authorized signatories of the partnership /company and records extracted from earlier tax regime and cancel the registration as per law. 6. Fraudulently obtained GSTIN: Some unscrupulous persons got registration in the name Of wagers, labourers, cart pullers etc only for generation of e-way bills using such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 29(1) 29(2) of the Acts who have failed to submit returns for six consecutive tax periods in case of regular taxpayers or three in case of Composition taxpayers. Fortnightly awareness session at unit level to be conducted to sensitize the reluctant taxpayers. Regular meeting to be organized by inviting the practicing CAs/tax consultants to ensure return submission by their respective taxpayers from time to time. Random physical inspection to be conducted at the business premises of some selected taxpayers to convey the consequences of noncompliance. Vigilance drives to be undertaken on evaders based on the data extracted from red flag, MIS, e-way bill portal or GSTN The Zonal Heads and the Unit Heads to hold periodical reviews among the unit officers to discuss the progress from time to time. Analysis of top 20 taxpayers of each unit (50 in Guwahati) to be done to study revenue trends and to ensure that these top taxpayers file returns regularly. Sector wise analysis to be done to study GST impact on each sector. In this regard, you may be guided by Circular No.25/2018 (No. CT/GST15/2017/196 dated 29.10.2018) issued from this office as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxpayer still fails to file the final return within 15 days of the receipt of notice in FORM GSTR-3A , then an assessment order in FORM GST ASMT-13 u/s 62 of the Assam GST Act read with rule 100 shall have to be issued to determine the liability of the taxpayer u/s 29(5) on the basis of the information available with the Proper officer. GST ASMT -13 shall follow if still not complied with. In order to be prudent in granting new registration to an applicant who has not applied for revocation of his cancelled GSTIN or has not filed GSTR-10 against his cancelled GSTIN, the directive specified in Circular No: 49/2019-GST (CT/GST-15/2017/340.) dated 28th March,2019 should be followed invariably : Para : 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 taxpayer is seeking another registration within the state although he has an existing registration the said state or his earlier registration has been cancelled. It is clarified that not applying for revocation of cancellation along with continuance of the conditions specified in clauses (b) and (c) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of application or from the date from which the cancellation is sought whichever is later during pendency period of cancellation process 2. Proper officer may suspend the registration whose cancellation notice has been served till the effect of cancellation. Rule 22 (Cancellation of Registration) : 1. Show cause Notice in REG-17 2. Reply to show cause Notice ( REG-17 ) in REG 18 within the period given by the proper officer. 3. Order of cancellation in REG-19 4. Drop cancellation proceeding in REG-20 Procedures for processing of cancellation of registration are laid down in Circular No. 25/2018-GST dated 29/10/2018 Demand and Recovery: The Proper Officer should not be apprehensive of the fact that if a person does not pay his dues how the amount would be recovered. In this regard, a Proper officer shall follow section 79: 79. (1) where any amount payable by a person to the Government under any of the provisions of this Act or the rules made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the following modes: (a) the proper officer may deduct or may require any other specified off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the portal to ask the taxpayer to appear in person, but a Proper officer should not ask the taxpayer to appear in person (except the request for appearance in person is sought within that 7 working days) to avoid unnecessary delay. Already the taxpayer has got sufficient time to regularize his inactive account. Giving more time and opportunity will not only be wastage of time but it will increase the work load of the concerned Proper officer. In order to play safe and avoid legal complicacy, a Proper officer should wait for another three working days from the expiry of the last date to reply the SCN and should cancel the GSTIN. Duties of a Proper Officer after cancellation of registration: Wait for three months to see the taxpayer file GSTR-10 Verify the amount furnished in GSTR-10 or issue SCN IN ASMT-14 If GSTR-10 not filed and final liability not discharged Issue SCN in FORM GSTR-3A in case of cancellation u/s 29(1) (voluntary) Issue SCN in FORM GST ASMT-14 u/s 63 in case of non-payment of liability after cancellation u/s 29(2) (Suo-moto) Issue assessment order in FORM GST ASMT-15 u/s 63 in case of non-p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27,520 98,630 77.34% May, 18 1,31,906 1,01,069 76.62% June,18 1,34,911 1,02,926 76.29% July, 18 1,38,403 1,04,604 75.58% August, 18 1,41,113 1,05,808 74.98% September,18 1,43,299 1,06, 224 74.13% October,18 1,45,688 1,05,335 72.30% November,18 1,47,983 1,01,369 68.50% December,18 1,50,092 1,00,500 66.96% January,19 1,52,381 98,495 64.64% February,19 1,54,733 96,291 62.23% March, 19 1,57,594 87,202 55.46% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the district level for enhancing the compliance rate in return filing. The taxpayers who have not filed returns continuously for six months and three quarters for composite taxpayers, their registration may be cancelled suo-moto. The field level officers would be asked to check genuineness of registration with physical verification. To create awareness among the officers and taxpayers about revocation of cancellation. It has brought us to a common platform with the Central GST officers to work for a common goal to enhance return filing. Therefore, you are required to do the following: Hold a joint meeting with the Central GST officers at your jurisdiction Hold regular interactive session with tax practitioners of your locality to pursue them to file returns of their clients punctually. The dais must be shared with the Central officials. Share and exchange expertise and experience with the Central agency for common revenue orientation. Arrange joint door to door drive to create a constant pressure on the defaulting taxpayers for return submission. It is believed that all the officers will take note of the above facts and understand the importance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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