Verification of applications for grant of new registration [CBIC Circular]
• A large number of registrations have been cancelled by the proper officer under the provisions of section 29(2) of the CGST Act, 2017 read with rule 21 of the CGST Rules, 2017 on account of non-compliance of the said statutory provisions.
• Those who continue to carry on business and therefore are required to have registration under GST, need to apply for revocation of cancellation of registration as specified in section 30 of the CGST Act read with rule 23 of the CGST Rules.
• Instead, such persons are applying for fresh registration. Such new applications might have been made as such person may not have furnished requisite returns and not paid tax for the tax periods covered under the old/cancelled registration.
• It is possible that the applicant may suppress some material information in relation to earlier registration. Some of the information that may be concealed in the application for registration in FORM GST REG -01 are S. No. 7 “Date of Commencement of Business”, S. No. 8 “Date on which liability to register arises”, S. No. 14 “Reason to obtain registration” etc. Such persons may also not furnish the details of earlier registrations, if any, obtained under GST on the same PAN.
• Section 25(10) of the CGST Act read with rule 9 of the CGST Rules provide for rejection of application for registration if the information or documents submitted by the applicant are found to be deficient
• Not applying for revocation of cancellation of registration along with the continuance of the conditions specified in clauses (b) and (c) of section 29(2) of the CGST Act shall be deemed to be a “deficiency” within the meaning of rule 9(2) of the CGST Rules.
• The proper officer may compare the information pertaining to earlier registrations with the information contained in the present application, the grounds on which the earlier registration(s) were cancelled and the current status of the statutory violations for which the earlier registration(s) were cancelled.
• The data may be verified on common portal by fetching the details of registration taken on the PAN mentioned in the new application vis-a-vis cancellation of registration obtained on same PAN. The information regarding the status of other registrations granted on the same PAN is displayed on the common portal to both the applicant and the proper officer.
• Further, if required, information submitted by applicant in S. No. 21 of FORM GST REG-01 regarding details of proprietor, all partner/ Karta/ Managing Directors and whole time Director/Members of Managing Committee of Associations/Board of Trustees etc. may be analysed vis-à-vis any cancelled registration having same details.
• If proper officer finds that application for revocation of cancellation of registration has not been filed and the conditions specified in clauses (b) and (c) of section 29(2) of the CGST Act are still continuing, then, the same may be considered as a ground for rejection of application for registration in terms of sub-rule (2) read with sub-rule (4) of rule 9 of CGST Rules.
• Thus, where the applicant fails to furnish sufficient convincing justification or the proper officer is not satisfied with the clarification, information or documents furnished, then, his application for fresh registration may be considered for rejection.
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