Suo motu cancellation of registration under GST by proper officer :
The proper officer may, in the manner as may be prescribed, cancel the registration of taxable person from such date, including any retrospective date, as he may deem fit, where,—
(a) the registered taxable person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 [composition scheme] has not furnished returns for three consecutive tax periods; or
(c) any taxable person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under section 25(3) has not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts.
Opportunity of hearing before cancellation of registration – The proper officer shall not cancel the registration without the person an opportunity of being heard – proviso to section 29(2) of CGST Act.
Procedure for suo motu 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-16, 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 – Rule 14(1) of Registration Rules.
The reply to the show cause notice issued under rule 14(1) shall be furnished in form GST REG-17 within the period prescribed in the rule 14(1) – Rule 14(2) of Registration Rules.
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