GST Suspended? What to do Next?
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GST Suspended? What to do Next?

The nationwide GST laws have created an extensive system of compliance. GST laws are constantly changed to make it easier to comply with the GST regulations and to make it equitable for all. However, the government is focused on making GST tax laws more stringent as they’ve ever been. A failure to comply with GST regulations may lead to the cancellation/suspension of GST registration which one cannot afford to let happen as it is not lawful to make any taxable supply after the suspension of GST Registration. Let’s take the time to look more deeply at the reasons for this and the ways to manage the GST registration suspension.

Reasons behind Cancellation/Suspension of GST Registration
As a taxpayer, You may be wondering what the reason is for your GST registration could be canceled or the possibility of having your registration suspended. It is important to note that it is not possible to have a GST registration can be canceled without a valid reason. This is why it’s vital to keep an eye on any chance of GST registration cancellation.

Here are a few reasons that your GST registration might be suspended

  • In the event that there’s a change in the structure of your company.
  • If the business ceases to exist, it can be either merged, transferred, or shut down.
  • It could be suspended in the event that the taxpayer does not adhere to the rules in the CGST Act.
  • The taxpayer can opt to apply for voluntary cancellation of registration. in that instance, the appropriate officer will put the GST on suspension.
  • In the event that GST Registration was taken by fraud, the officer is entitled to cancel the registration.
  • Registration is also suspended if it is discovered that the company is operated from a different location than that mentioned.
  • As per GST regulations, a failure to start the business within six months of GST registration may lead to a cancellation/suspension of the registration.
  • When the taxpayer is discovered to be issuing invoices, without providing products or services
  • If the taxpayer is unable to provide bank account details that are valid or provide valid bank account details, the registration may be suspended following being warned.
  • If a person who is covered by the composition scheme hasn’t provided his tax returns for three consecutive tax periods
  • If an individual who is conducting business not under the common scheme hasn’t submitted the tax returns for the period which is less than six months.

Understanding the reasons for the suspension of GST registration
An authorized official can only suspend registrations if he has reasons to believe that the registration may be liable for cancellation. The officer could issue an opportunity to be warned or to correct the issue before the GST is removed.

The taxpayer will be informed by the form GST REG-31 of any differences. It also notes that GST could be canceled when the taxpayer fails to give a reason. Furthermore, the officer could nevertheless suspend the taxpayer’s account in the event that, in his judgment, the explanation is deemed not satisfactory or incomplete.

Consequences of GST Registration Suspension
If the GST registration for a particular individual is suspended, the business entity might not be able to pay tax or file a GST return. If you fall into the taxpayer category who is a GST registered taxpayer and the registration is suspended, immediately notify the assessing officer and request the activation of your GSTIN. In the absence of doing this at the right time could lead to the cancellation of your registration as well as further penalties resulting from infractions to GST regulations.

What should you do following what should you do following Suspension of GST Registration?
If the taxpayer hasn’t voluntarily filed a request for cancellation of registration but has been served with a notice below are the options you could think about to consider

1. Upon receiving a notice about inconsistencies
If a taxpayer receives an audit notice and he is required to provide an answer to the tax authority within a month of getting the notification. The response should contain details of all corrective actions and steps taken to comply with the tax authorities’ requirements and the reason reasons why the registration shouldn’t be canceled.

2. On receiving a cancellation notice
In this case, you must respond to the tax office using the GST Reg 18 form. GST Reg. 18 on the internet via GST.gov.au, the official GST website within one month of receiving the notice.

3. Receiving a notice due to the non-filling of returns
Returns not filed are the most typical situation. If a notice of cancellation or suspension of registration is served because of the not filing returns, the individual concerned may complete all due returns and file a response.

How to Activate the suspended GST Registration?
If you are a registered taxpayer You can request a reactivation of your GST registration in accordance with the GST laws after 30 calendar days. However, this can only be accomplished when an authorized GST official suspends your registration. A registration that is suspended voluntarily cannot be canceled under any circumstance. It is clear that the suspension rules give relief to taxpayers to a certain extent.

The government has simplified the procedure, however, it is still recommended to seek the assistance of an expert for revoking the suspension of GST registration. Consultation with a GST expert or an accredited CA can assist you in staying within the law and discovering solutions to your suspension from GST registration without having to go through many hassles.