RULE 21
REGISTRATION TO BE CANCELLED IN CERTAIN CASES
The registration granted to a person is liable to be cancelled, if the said person,-
(a) does not conduct any business from the declared place of business; or
(b) issues invoice or bill without supply of goods or services 1[or both] in violation of the provisions of this Act, or the rules made thereunder; or
(c) violates the provisions of section 171 of the Act or the rules made thereunder.
(d) violates the provision of rule 10A
2[(e) avails input tax credit in violation of the provisions of section 16 of the Act or the rules made thereunder; or
(f) furnishes the details of outward supplies in FORM GSTR-1 12[as amended in FORM GSTR-1A if any], under section 37 for one or more tax periods which is in excess of the outward supplies declared by him in his valid return under section 39 for the said tax periods; or
(g) violates the provision of rule 86B.]
13[(ga) violates the provisions of third or fourth proviso to sub-rule (1) of rule 23; or]
9[(h) being a registered person required to file return under subsection (1) of section 39 for each month or part thereof, has not furnished returns for a continuous period of six months;
(i) being a registered person required to file return under proviso to subsection (1) of section 39 for each quarter or part thereof, has not furnished returns for a continuous period of two tax periods.]
Rule 21A Suspension of registration.
(1) Where a registered person has applied for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration under rule 22.
2. Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29 or under rule 21, he may, 3[**], suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration under rule 22.
10[(2A) Where,-
(a) a comparison of the returns furnished by a registered person under section 39 with the details of outward supplies furnished in FORM GSTR-1 14[as amended in FORM GSTR-1A if any] or the details of inward supplies derived based on the details of outward supplies furnished by his suppliers in their FORM GSTR-115[or in FORM GSTR-1A of the previous tax period, if any], or such other analysis, as may be carried out on the recommendations of the Council, show that there are significant differences or anomalies indicating contravention of the provisions of the Act or the rules made thereunder, leading to cancellation of registration of the said person, or
(b) there is a contravention of the provisions of rule 10A by the registered person, the registration of such person shall be suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal, or by sending a communication to his e-mail address provided at the time of registration or as amended from time to time, highlighting the said differences, anomalies or non-compliances and asking him to explain, within a period of thirty days, as to why his registration shall not be cancelled.]
3. A registered person, whose registration has been suspended under sub-rule (1) or sub-rule (2)5[or sub-rule (2A)], shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
6[(3A) A registered person, whose registration has been suspended under sub-rule (2) or sub-rule (2A), shall not be granted any refund under section 54, during the period of suspension of his registration.]
[Explanation.-For the purposes of this sub-rule, the expression ―shall not make any taxable supply shall mean that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the period of suspension.]26
4. The suspension of registration under sub-rule (1) or sub-rule (2) or sub-rule (2A) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect.]27
7[Provided that the suspension of registration under this rule may be revoked by the proper officer, anytime during the pendency of the proceedings for cancellation, if he deems fit]
8[Provided further that where the registration has been suspended under sub-rule (2A) for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29 and the registration has not already been cancelled by the proper officer under rule 22, the suspension of registration shall be deemed to be revoked upon furnishing of all the pending returns.]
11[Provided also that where the registration has been suspended under sub-rule (2A) for contravention of provisions of rule 10A and the registration has not already been cancelled by the proper officer under rule 22, the suspension of registration shall be deemed to be revoked upon compliance with the provisions of rule 10A.]
[(5) Where any order having the effect of revocation of suspension of registration has been passed, the provisions of clause (a) of sub-section (3) of section 31 and section 40 in respect of the supplies made during the period of suspension and the procedure specified therein shall apply.]28
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1. Inserted Vide Fourteenth Amendment Rules, 2020.
2. Inserted Vide Fourteenth Amendment Rules, 2020.
3. Word deleted before it was read as
"after affording the said person a reasonable opportunity of being heard"
4. New rule inserted vide Fourteenth Amendment Rules, 2020
5. Word inserted vide Fourteenth Amendment Rules, 2020
6. New rule inserted vide Fourteenth Amendment Rules, 2020
7. Provisio inserted vide Fourteenth Amendment Rules, 2020
8. Provisio Inserted Vide Not. No. 14/2022 Dt 05.07.2022.
9. Inserted Vide Notification No. 19/2022, Dated : 28.09.2022, W.e.f. 01.10.2022.
10. Substituted Vide Notification No. 38/2023, Dated : 04.08.2023, w.e.f. 04.08.2023. Before it was read as "[(2A) Where, a comparison of the returns furnished by a registered person under section 39 with
(a) the details of outward supplies furnished in FORM GSTR-1; or
(b) the details of inward supplies derived based on the details of outward supplies furnished by his suppliers in their FORM GSTR-1, or such other analysis, as may be carried out on the recommendations of the Council, show that there are significant differences or anomalies indicating contravention of the provisions of the Act or the rules made thereunder, leading to cancellation of registration of the said person, his registration shall be suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal, or by sending a communication to his e-mail address provided at the time of registration or as amended from time to time, highlighting the said differences and anomalies and asking him to explain, within a period of thirty days, as to why his registration shall not be cancelled.]"
11. Inserted Vide Notification No. 38/2023, Dated : 04.08.2023, w.e.f. 04.08.2023
12. Inserted Vide Notification Number 12/2024 Dt 10.07.2024. w.e.f.
13. Inserted Vide Notification Number 12/2024 Dt 10.07.2024. w.e.f.
14. Inserted Vide Notification Number 12/2024 Dt 10.07.2024. w.e.f.
15. Inserted Vide Notification Number 12/2024 Dt 10.07.2024. w.e.f.
25 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
26 Inserted vide Notf no. 49/2019-CT dt. 09.10.2019
27 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
28 Inserted vide Notf no. 49/2019-CT dt. 09.10.2019
