GST Officers to Immediately Suspend
Taxpayer's Registration for 'Significant Anomalies' in Sales Return
·
Standard Operating Procedure (SOP) for
Implementation of the Provision of Suspension of Registrations under sub-rule
(2A) of rule 21A of CGST Rules, 2017
·
Suspension of Registration for Mismatch in
Outward Supply between Principal and Suppliers GSTR1
GST officers will
immediately suspend registration of taxpayers whose sales return or GSTR-1 forms show "significant differences or
anomalies" from the return filed by their suppliers, a move aimed at
curbing tax evasion and safeguarding revenues.
The Central Board of
Indirect Taxes and Customs (CBIC) has issued a Standard Operating Procedure
(SOP) for suspension of registration of a person on observance of such
discrepancies /anomalies which indicate violation of the GST Act
As per the SOP, the
registration of specified taxpayers shall be suspended and system generated
intimation for suspension and notice for cancellation of registration in form
GST REG-31, containing the reasons of suspension, shall be sent to such
taxpayers on their registered e-mail address.
The registration
would be suspended in cases where a comparison of the returns furnished by a
registered person with the details of outward supplies furnished in form
GSTR-1, or the details of inward supplies derived based on the details of
outward supplies furnished by his suppliers in their GSTR-1, show 'significant
differences or anomalies', indicating contravention of the provisions of the
GST Act.
"Till the time
functionality for FORM REG-31 is made available on portal, such
notice/intimation shall be made available to the taxpayer on their dashboard on
the common portal in Form GST REG-17.
"The taxpayers
will be able to view the notice in the 'View/Notice and Order' tab post
login," the SOP said.
Goods and Services
Tax (GST) officers have already intensified their drive against fake invoicing
and this has also contributed to increase in tax collections in the past couple
of months.
GST collections have
crossed the Rs 1 lakh crore mark for four consecutive
months and surged to an all-time high of about Rs
1.20 lakh crore in January.
The SOP further said
the taxpayers whose registrations are suspended would be required to furnish
reply to the jurisdictional tax officer within 30 days from the receipt of such
notice / intimation, explaining the discrepancies / anomalies and the reasons
as to why their registration should not be cancelled.
Reply has to be sent
to the jurisdictional officer through the common portal within 30 days from the
receipt of notice / intimation.
In case the
intimation for suspension and notice for cancellation of registration is issued
on ground of non-filing of returns, the said person may file all the due
returns and submit the response, the SOP added.