A registered person under GST failed to file his returns for a period of the last six consecutive months. For this period his liability under GST works out to ₹ 20,000 (CGST ₹ 10,000, SGST ₹ 10,000). The department block

CS Professional · Advanced Tax Laws · PYQS · June 2021
A registered person under GST failed to file his returns for a period of the last six consecutive months. For this period his liability under GST works out to ₹ 20,000 (CGST ₹ 10,000, SGST ₹ 10,000). The department blocked his facility to generate e-way bills and the appropriate authority also issued a show cause notice to him as to why his registration should not be cancelled and afforded him an opputunity to present his case. As the registered person failed to respond to the notice his registration was cancelled. The registered person is of the view that since his registration has been cancelled he is not required to pay anything to the Government. Advise the registered person in this context as per the CGST Act, 2017.

Answer & Explanation:

According to Section 29 of Central Goods and Services Tax Act, 2017 the proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where any registered person has not furnished returns for a consecutive period of six months after giving him an opportunity of being heard. The section further provides that cancellation of registration hereunder shall not affect the liability of the person to pay tax and other dues under this Act or to any obligation under this Act or Rules made thereunder for any period prior to the date of cancellation whether or not such tax and dues are determined before or after the date of cancellation. Hence, in this case the dealer has to pay the tax of ₹ 20,000 along with interest to the Government.

Topics: GST - Registration

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