Under Section 25(8), when a person who is liable to get registration under the GST Act, but has failed to do so, for whatever reasons. And it comes to the notice of an officer, during a survey, inquiry, inspection, search or some other proceedings under the Act.
Thereafter, that officer can take action to generate a Temporary ID, on his own initiative. This authority is available to the enforcement officers in Back Office GST Portal, in the manner as prescribed in rule 16 of the CGST Rules, 2017.
During enforcement proceedings, the Tax Officials may collect an amount from unregistered persons and start the Suo Moto GST Registration to get it deposited. For this, an order by FORM GST REG-12 is issued.
Conditions under the GST Act
- This temporary registration ID is considered to be effective from the date of the order to allocate registration. Sub-rule (1).
- This person has to, within 90 days, submit an application for registration.
- He may file an appeal against this grant of temporary registration. And subsequently, the ruling by the Appellate Authority upholds his liability to register. Then 30 days period would be applicable starting from the date of that ruling.
- Afterward, a verification is pursued under sub-rule (4) to grant Goods and Services Identification Number. This assignment of this GSTIN is, also, considered effective from the date of the above order.
- For the application submitted under sub-rule (3), verification & issuing process apply, that have been detailed in Rules 2 & 3.
All you wanted to know about Suo Moto Registration under GST
1) Pre-requisite for Suo Moto Cancellation of Registration
The Enforcement Official has to have a valid reason to initiate Suo moto Cancellation, without any bias. These reasons have been specified under Section 29(2) of the CGST/SGST Act.
2) Initiation by the investigating officer
Tax Officials will generate a Temporary ID in either of the following two ways:
1. On his Interface of the GST Portal, fill your details. This generates a Temporary ID and the process is complete.
2. When the Enforcement activities carried from outside office, he can initiate Suo Moto Registration from his registered mobile. Especially relevant for areas such as check posts or borders.
3) What is in the Temporary ID?
The Temporary ID is also of 15 characters, as any GSTIN. And the component, however, is as follows, starting from the left:
- The first 2 digits indicating State Code
- Next 2 digits indicate Year
- Then 8 digits is a serial number. For every new financial year, it starts at 1.
- Last 3 digits have TMP for temporary.
4) Whether a Registration Certificate is generated?
No Registration Certificate is granted for temporary GST Registration. Only a Temporary ID is issued to you. And you have to apply for registration within the specified period.
5) Information about the Temporary ID & Password, Order of allotment
An SMS and e-mail (if provided to the official) will be sent to you. You can Login to Government GST Portal – www.gst.gov.in with this. It gives you access to certain functions such as payments, notices, orders, registration etc.
To check the order of allotment, go to View Notices and Orders, under the Services tab. You can also download the order of allotment of temporary registration, through the download link.
In the event, the official had collected some amount while enforcement, you can check that in your Electronic Cash Ledger, on the portal, under the Services Tab.
You have to follow GST Registration Process and get a New Registration done before you can make use of the various facilities on the GST portal. With your temporary ID, many fields will be blank or inaccessible.
7) New Registration after Suo Moto Registration is compulsory
These are only Temporary registration. So within 90 days from the generation date of the temporary ID, you have to apply for New Registration. As explained in the Act, the application is to be in the form and manner provided in rule 8 (normal taxable persons) or rule 12 (TDS/TCS deductors).
In case you have appealed against getting registered and an order upholds the Temporary Registration. Wherefore, you have to apply within 30 days from the date of that order.
In Part B of the New Registration Application. There is a section Business Details section. With an option to Indicate Existing Registrations. Here you are to fill your Temporary ID.
8) Update or change mobile number
You cannot change the mobile number on which the temporary ID has been generated. This number must have been provided by you to the Tax Official. Later, when you apply for fresh GST Registration on the Portal, you can change the number.
9) The effective date of such Suo Moto registrations
It shall be effective from the date of the order granting registration or the order upholding this grant.
10) What happens to the amount deposited?
The amount deposited at the time of Suo Moto is updated in the liability register. This amount you can adjust with your liabilities during New Registration.
11) When Application for new registration is not filed in time?
If you do apply for new registration, within 90 days from the date on which the temporary registration was granted, the Tax Official gets an alert.
12) How is the tax deposited in Suo Moto Registration?
GST is deposited in either of the two following ways:
1. The Tax Official may agree to collect & deposit cash if you request. Then:
You pay cash to the Tax Official for Registration Enforcement.
He would log in to his Interface on the GST Portal and complete the Suo Moto Registration.
A Challan is generated and he would select the payment mode as Over The Counter (Cash, Cheque or DD).
He, then, selects the Bank in which the State Tax Office has the Bank account.
With the Challan generated, he deposits the cash in the select Bank.
Subsequently, it would show in the Electronic Cash Ledger under your Temporary ID.
2. You make the payment, after receiving the Temporary ID:
Log in to the GST Portal, with your Temporary ID & Password.
You can generate your own Challan for payment under GST, make payment using online or offline payment modes.
The amount paid is reflected in Electronic Cash Ledger under your Temporary ID.
13) What if an employee unaware about your GSTIN is issued a Temporary ID by the Enforcement Officer?
You would have to approach the Tax Official, at the time of disposal, with your original GSTIN. The Official would pass an order against that Temporary ID GSTIN.
Cancellation of Suo Moto Registration
1) Tax Official may initiate for cancellation of Suo Moto GST registration?
The Tax Official can initiate for Suo Moto Cancellation of registration under any of the below provisions mentioned under the GST Act:
- The Taxpayer (or the Primary Authorized Signatory) has not applied for New GST Enrolment within 90 days from the appointed day or any such extended period as specified.
- Got the business registered by means of fraud, suppression of facts or intentional misstatement etc.
- If a Taxpayer has not filed returns for six months, consecutively. In the case of a Composition taxpayer, they have not furnished returns for three tax periods, continuously.
- The person has supplied goods and/or services without issuing an invoice. Violating the provisions of the Act, with an intention to evade tax.
- An issue or bill is issued without an actual supply of goods and/or services. Violating the provisions of the Act, with an intention to evade input tax credit or refund of tax.
- Collects tax but doesn’t deposit it with the respective Government, within 90 days.
- Hasn’t paid tax, interest or penalty to respective Government, within 90 days.
- Misconduct has been proved by the person during any proceeding under the GST Act.
- The Person is not liable to deduct or collect the tax, or even be registered, as per the GST Act.
- The Person has ceased to be liable to deduct or collect the tax, or even be registered, as per the GST Act.
- Death of the person, in case of Sole Proprietorship.
- Transfer, Amalgamation, Merger, Demerger, Discontinuation, Closure, Sale, Lease of Business.
2) Pre-requisite for Suo Moto Cancellation of Registration
The Tax Official has to have a valid reason to initiate Cancellation under Section 29(2) of the CGST/SGST Act.
3) Information of Suo Moto Cancellation of Registration?
A Show Cause Notice has to be given to the Taxpayer and an opportunity to be heard, or file clarification within 7 working days. This Notice is issued by the Tax Official/Proper officer.
4) This Show Cause Notice (SCN) is visible on the GST Portal
The Taxpayer can view the SCN by clicking on View Notices and Orders, under the User Services Tab.
5) Log-in on the GST Portal after the cancellation of Suo Moto Registration
The Tax-payer can still Log-in after Suo Moto Cancellation of Registration, with certain restrictions.
6) What can be amended on the GST Portal after Suo Moto cancellation of Registration?
E-mail ID & mobile number can be updated.
But no changes can be made in the Registration section.
An Application for Revocation (if applicable) is still open for the Cancelled GST Application.
7) What is the effective date of Cancellation of Registration?
The date on the Cancellation Order is the Effective Date.
8) What are the Liabilities of the Taxpayer after Cancellation of Registration?
All liabilities before the date of Suo Moto Cancellation are, still, required to be paid by the taxpayer. If the determining date is later than the date of the Order of Cancellation, still, as the liabilities were incurred before, the Taxpayer will have to pay.
9) When Registration has been Cancelled?
- The Taxpayer is informed by SMS and Email.
- The Order is available to view/print/download at the Taxpayer’s dashboard on the GST Portal.
- Status of the GSTIN will show as “Inactive” from “Proceeding for Cancellation initiated” and information will be sent to the concerned Govt Authorities.
- Returns or Invoices cannot be uploaded on the GST Portal, pertaining to the period after the effective date of cancellation. Also, the GST Payer (GSTP) will not be able to carry out any functions related to GST for any other GSTP after this date.
10) GST Refunds or filing Returns for an earlier period
The Returns can be submitted only for the period before the effective date of Cancellation. Also, another GSTP is not allowed to carry your GSTP functions after the date of Cancellation. GST Refund Procedure remains the same too, i.e. applicable for the earlier period only.
11) Replying to the SCN or filing Clarification
On the GST Portal, go to Services tab, select Registration. There’s an option of Application for Filing Clarifications. If the Taxpayer doesn’t file a Clarification within prescribed 7 working days, the Enforcement Official can proceed with Cancellation of the registration.
12) To view the date for the personal hearing for Clarification
This date is available to view on the GST Portal under the same tab of View Notices and Orders.
13) After the Clarification has been provided?
Ans: In case the Tax Official is satisfied with the response received from the taxpayer, on the SCN issued, the proceedings can be dropped.
a. The Taxpayer is informed by SMS & Email about dropping of the SCN.
b.Order for the dropping of SCN will also be sent by Email and SMS.
c. This Order will, also, be available on the Dashboard.
d. The GSTIN status will change from “Proceeding for Cancellation Initiated” to “Active”.
For more information, you can also check the GST Portal.
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