The provisions regarding suspension of GST registration are mandated under Rule 21A of the CGST Rules, 2017.
Sub-rule (2A) of Rule 21A of the CGST Rules, 2017 mandates that if a proper officer finds any significant differences or anomalies:
- On comparing details of outward supplies furnished under Form GSTR-1 and Form GSTR 3B.
- On comparing details of inward supplies (ITC) reflecting in the Form GSTR-2B with that claimed in Form GSTR-3B.
- Any other analysis
He can issue form GST REG-31 for intimating such discrepancies to the taxpayer. He will also mention that if a proper explanation is not provided on these discrepancies, the registration may get cancelled.
The proper officer can also suspend the registration as per Rule 21A(2A) with effect from the date of this communication to the taxpayer. However, the proper officer can lift the suspension on receiving a satisfactory reply from the taxpayer.
In regard to the above Rule, now a warning pop-up message is coming on GST Portal when you go to Dashboard > Tax liability and ITC Comparison and select a financial year.
The warning message reads as under:
“Registration can be suspended as the percentage difference in liability declared in GSTR-3B varies more than 10% with that declared in GSTR-1 or the ITC claimed in GSTR-3B varies more than 10% with the values auto-populated from GSTR-2B on the basis of GSTR-1 filed by suppliers.
For ready reference the snap of the warning message is as under:
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