Lok Sabha Question No. 3172 (UNSTARRED), answered on 2023-03-20
Subject: Registration of GST Taxpayers
Ministry: FINANCE
Asked by: Arvind Ganpat Sawant, Jadon Chandra Sen, Sanjay Haribhau Jadhav

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION No. 3172

TO BE ANSWERED ON MONDAY, MARCH 20, 2023/PHALGUNA 29, 1944 (SAKA)

## REGISTRATION OF GST TAXPAYER

3172. Shri Arvind Ganpat Sawant:

Dr. Chandra Sen Jadon:

Shri Sanjay Jadhav:

Will the Minister of FINANCE be pleased to state:-

- (a) whether the registration of a taxpayer is cancelled for violation of several provisions under the GST Act, if so, the details there and the basis for the same;
- (b) whether the Government has conducted any review in this regard and if so, the details thereof and if not, the reasons therefor;
- (c) whether the process of registration under GST is long due to which taxpayers have to face a lot of trouble and if so, the details thereof and the steps taken by the Government in this regard;
- (d) whether the taxpayers are facing new confusion due to the reported complexities in the GST law and if so, the details thereof;
- (e) whether the Government proposes to conduct a hearing before an appointed nodal officers with regard to cancellation of registration rather than having the provision of mailing an appeal against the cancellation of registration and if so, the details thereof; and
- (f) the steps taken by the Government to facilitate the process of registration under the GST?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE

## (SHRI PANKAJ CHAUDHARY)

- (a)  Sub-section  (2)  of  section  29  of  Central  Goods  &  Services  Tax  Act,  2017  provides  for cancellation of registration by the proper officer, for the reasons specified therein such as:
- (i) contravention of specific provisions of the CGST Act, 2017 or the rules made thereunder,
- (ii) failure to furnish returns for a specified continuous tax period, and
- (iii) obtaining registration by means of fraud, wilful misstatement or suppression of facts.

(b) In order to ensure compliance with various provisions of the CGST Act, 2017 and rules made thereunder,  the  Government,  on  the  recommendations  of  the  Council,  has  made  amendments  in sub-section (2) of section 29 of CGST Act, 2017 and rule 21 of CGST Rules, 2017 from time to time.

(c) Rule 9 of CGST Rules, 2017 provides for specific timelines for verification of an application of registration  and  approval  thereof  by  the  proper  officer.  If  the  proper  officer  fails  to  take  action within the said timelines, the said Rule provides for deemed approval of the said application for registration.

(d) No such issue has been reported.

(e) First proviso to sub-section (2) of section 29 of the CGST Act, 2017 already provides that the proper officer shall  not  cancel  the  registration  of  a  person  without  giving  him  an  opportunity  of being heard. Further, such order for cancellation of registration can be appealed against.

(f) Some of the measures to further facilitate the process of registration under GST are as follows:

(i) online process of application for registration on the common portal,

(ii)  expeditious  approval  within  seven  working  days  where  the  applicant  undergoes authentication  of  Aadhaar  number  while  submitting  the  said  application,  and  approval within thirty days where the applicant fails to undergo authentication of Aadhaar number or does not opt for the same.

(iii)  deemed approval of application for registration where the proper officer fails to take action within the prescribed timelines,

(iv)  furnishing  of  bank  account  details  upto  forty  five  days  from  the  date  of  grant  of registration or the date on which the return required under section 39 is due to be furnished, whichever is earlier.

Further, all the changes in law and procedures in relation to Central Goods & Services Tax Act, 2017  and  Central  Goods  &  Services  Tax  Rules,  2017  take  place  on  recommendations  of  GST Council.

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