Amendment & Cancellation of Registration | Taxation for CA Intermediate PDF Download

Amendment of Registration [Section 28]

• Changes in the particulars furnished at the time of registration: As per the section 28(1) it is to inform to the proper officer of any changes in the information furnished at the time of registration or subsequent thereto, in such form and manner and within such period as may be prescribed by every registered person and a person to whom a unique identity number has been assigned. 
• RULE 19(1) states that the registered person shall, within a period of 15 days of any change in any of the particulars furnished in the application for registration in FORM GST REG-01 or FORM GST REG-07 or FORM GST REG-09 or FORM GST REG-10 or for Unique Identity Number in FORM GST-13, either at the time of obtaining registration or Unique Identity Number or as amended from time to time, submit an application, duly signed or verified through electronic verification code, electronically in FORM GST-14, along with the documents relating to such change at common portal, either directly or through a facilitation Centre notified by the commissioner. 
• Approval or rejection of Amendment: Section 28(2) states that the proper officer may approve or reject amendments in the registration on the basis of information furnished under this section or as ascertained by him and within such period as may be prescribed. Provided that approval of the proper officer shall not be required in respect of amendment of such particulars as may be prescribed. Without giving the person an opportunity of being heard, the proper officer cannot reject the application for amendment. 
• Proviso to Rule 19(1) states that
• Where the changes relates to
  • Legal name of business, 
  • Address of the principal place of business or any additional places(s) of business, 
  • Addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent, responsible for the day to day affairs of the business, 
• Which does not warrant cancellation of registration under section 29, from the date of receipt of the application in GST FORM REG-14 within a period of 15 days, the proper officer shall, after due verification, approve the amendment and issue an order in FORM GST-15 electronically and such amendment shall take effect from the date of the occurrence of the event warranting such amendment. 
• The certificate of registration shall stand amended upon submission of the application in FORM GST REG- 14 on the common portal, where the changes relates to any particulars other than those specified in clause (a).
• The person shall apply for fresh registration in FORM GST REG-0, where a change in the constitution of any business results in the change of the Permanent Account Number of a registered person.

Cancellation of Registration [Section 29]

• Section 29(1) states that proper officer may, 
  • either on his own motion OR
  • In case of death of such person, an application filed by the registered person or by his legal heirs, cancel the registration, in such manner and within such period as may be prescribed [Rule 20], having regard to the circumstances, 
  • For reasons such as death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of, the business has been discontinued, transferred fully for any reason, OR 
  • Change in the constitution of the business, OR 
  • The person is no longer liable to be registered under section 22 or section 24, the taxable person, other than the person registered under section 25(3).
• RULE 20 states that
  • seeking cancellation of his registration under Section 29(1) shall electronically submit an application in FORM GST REG-16, where a registered person, other than a person to whom a Unique Identity Number has been granted under rule 17, 
  • Therein details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, 
  • Liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof, at a common portal within a period of 30 days of the occurrence of the event warranting the cancellation, either directly or through a facilitation Centre notified by the Commissioner, 
  • In case of taxable person, who has registered voluntarily, NO application for the cancellation of the registration, before the expiry of a period of one year from the effective date of registration.
• Section 29(2) states that the proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit where, 
  • Such provisions of the Act has been contravened by the registered person or the rules made thereunder as may be prescribed, OR 
  • Under section 10 has not furnished returns for three consecutive tax periods by a person paying tax, OR 
  • Any registered person, other than a person specified in clause (b), has not furnished return for a continuous period of three months, OR 
  • Under section 25(3), has not commenced business within six months from the date of registration by the person who has taken voluntary registration, OR registration has been obtained by way of suppression of facts, fraud or willful misstatement. Without giving the person an opportunity of being heard, the proper officer shall not cancel the registration.
• Section 29(3) under this section the cancellation of registration shall not affect the liability of the person to pay tax and other dues or to discharge any obligation or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. 
• Section 29(4) states that Under the Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the cancellation of registration, as the case may be, shall be deemed to be a cancellation of registration. 
• Section 29(5) states that the amount paid by the registered person whose registration is cancelled, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to 
  • On the day immediately preceding of such cancellation, the input tax credit in respect of inputs held in stock and inputs held in semi-finished or finished goods held in stock or capital goods or plant and machinery, OR 
  • The output tax payable on such gods calculated in such manner as may be prescribed, whichever is higher 
  • In case of capital goods and machinery, the amount equal to the input tax credit on the said capital goods and machinery shall be paid by the taxable person, under section 15, reduced by such percentage points or the tax on the transaction value of such capital goods or plant and machinery, whichever is higher.
• Section 29(6) states that under section 29(5), the amount prescribed shall be payable as may be prescribed by the Rule 44.
• Rule 44(b) provides ‘for capital goods held in stock, the input tax credit involved in the remaining useful life in months shall be computed on prorata basis, taking the useful life as five years ’. 
• Rule 21 states that in certain cases registration can be cancelled: The registration can be cancelled, if the person, 
  • If from the declared place of business, he does not conduct any business, or 
  • In violation of the provision of this Act, issues invoice or bill without supply of goods or services or the rules made thereunder, or 
  • Violates the rules of section 171 of the Act or the rules made thereunder. 
• Rule 22- Cancellation of Registration (Process) 
  • Under section 29, the registration of a person is liable to be cancelled when the proper officer has reason to believe, he shall issue a notice to such person in FORM GST REG-17, from the date of service of such notice within a period of 7 working days from the date of the service of such notice, as to why his registration shall be cancelled. 
  • Under rule 22(1), the reply to the show cause notice shall be furnished in FORM REG-18 within the period specified in the said sub-rule 
  • In FORM GST REG-19, an order shall be issued by the proper officer, within a period of 30 days from the date of application submitted under Rule 20(1), if a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled,
  • Under Rule 20(1), the date of the reply to the show cause issued, cancel the registration, with effect from a date to be determined by the proper officer and notify the taxable person, directing him to pay arrears of any tax, penalty including the amount liable to be paid under section 29(5). 
• The proper officer shall drop the proceedings and pass an order in FORM GST REG-20, where under rule 22(2) the reply furnished is said to be satisfactory. 
• If the application had been submitted by the proprietor himself, the provisions of Rule 22(3) shall apply to the legal heirs of a deceased proprietor.

Revocation of Cancellation of Registration [Section 30]

• Section 30(1) states that where any registered person, may apply to proper officer for revocation of the cancellation of the registration, whose registration is cancelled by the proper officer on his own motion, in the prescribed manner within 30 days from the date of service of the cancellation of the order. 
• Rule 23(1) states that the Commissioner either directly or through a Facilitation Centre notified, an application of revocation of cancellation of registration in FORM GST REG-21, to proper officer within a period of 30 days from the date of service of the order of cancellation of registration at the common portal by a registered person, whose registration is cancelled by the proper officer on his own motion, 
• Rule 23(1) states that if the registration has been cancelled for the failure of the registration person to furnish return, then no application for revocation shall be filed, unless such returns are furnished and any amount due as tax, in terms of such returns been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns. 
• Rule 23(2) (a) states that the proper officer shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant, if the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration. 
• Rule 23(2)(b)- The proper officer may reject the application for revocation of cancellation of registration and communicate the same to the applicant, for a reasons to be recorded in writing, under circumstances other than those specified in clause (a), by an order in FORM GST REG-05. 
• Rule 23(3) states that the applicant to show cause as to why the application submitted for revocation under sub-rule (1) should not be rejected and the applicant shall furnish the reply within 7 working days from the date of the service of the notice in FORM GST REG-24, when the proper officer before passing the order referred to in clause (b) of rule 23(2), issues notice in FORM GST REG-23 for applicant. 
• Section 30(2) states that the application cancellation of registration either revoke or rejected, by order within such period within such manner and prescribed, by the proper officer, 
• Section 30(2) states that unless the applicant has been given an opportunity of being heard, the application for revocation of cancellation shall not be rejected by the proper officer.
• Rule 23(4) states that the proper officer shall proceed to dispose of the application in the manner specified in rule 23(2) within a period of 30 days from the date of the receipt of such information or clarification from the applicant, on receipt of the information or clarification in FORM GST REG-24. 
• Section 30(3) states that under State Goods and Services Tax Act, the revocation of cancellation of registration shall be deemed to be revocation of cancellation of registration, as the case may be.