GST REG-20 Order Dropping the GST Registration Cancellation

The proper officer issues Form GST REG-20, which is an order dropping the GST registration cancellation process. The provisions of rule 22(4) of the CGST Rules, 2017 regulate the issuance of orders in Form GST REG-20.

The purpose of this article is to explain how the proper officer initiates cancellation procedures, how the taxable person responds to the cancellation proceedings, and how the proper officer issues an order dropping the cancellation of GST registration.

Who Can Initiate The GST Registration Cancellation Process?

The CGST Act, 2017, Section 29(2), specifies the circumstances under which the proper officer may commence cancellation procedures. The following are the said circumstances:

1. The taxable person who is registered under the composition scheme has failed to file necessary returns for three periods in a row.
2. The taxable person, excluding the composition scheme merchant, has failed to file applicable GST returns for the past six periods.
3. The taxable person has violated any provision of the Central Goods and Services Tax Act, 2017 or the rules promulgated thereunder.
4. The taxable person has voluntarily registered for GST but has not started his or her business within six months of the registration date.
5. The GST registration of the taxable person was obtained fraudulently.

On the occurrence of any of the above circumstances, the proper officer can cancel the GST registration. When the competent officer has grounds to think that the taxable person’s GST registration is about to be revoked, he must first issue a notice in Form GST REG-17.

Filing Of a Reply by The Taxable Person

If the taxable person is aggrieved by the proper officer’s notice, he or she must file an appropriate reply in Form GST REG-18. The reply must be sent within 7 working days from the date of receiving such notice.

Dropping Cancellation of GST Registration by Issuing an Order in Form GST REG-20

The taxable person’s response in Form GST REG-18 shall be checked by the proper authorities. If the proper officer is pleased with the results of the verification, the cancellation proceedings will be dropped. As a result, the competent authority will issue an order in Form GST REG-20 alerting the taxable person that the cancellation procedures have been dropped. The following information is included in the GST REG-20 order:

1. The reference number and date,
2. The number and date of the show-cause notice, and
3. The reasons for the cancellation proceedings being abandoned.

The cancellation proceedings will be marked as canceled after the taxed person receives the order in Form GST REG-20. As a result, the taxable person must adhere to all of the provisions established by the CGST Act, 2017 and the rules made thereunder.