Circular No. 95/14/2019-GST
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F. No. CBEC-20/16/04/2018 – GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***
New Delhi, Dated the 28
th
March, 2019
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)
Madam/Sir,
Subject: Verification of applications for grant of new registration – Reg.
Recently, a large number of registrations have been cancelled by the proper officer
under the provisions of sub-section (2) of section 29 of the Central Goods and Services Act,
2017 (hereinafter referred to as „CGST Act‟) read with rule 21 of the Central Goods and
Services Rules, 2017 (hereinafter referred to as „CGST Rules‟) on account of non-
compliance of the said statutory provisions. In this regard, instances have come to notice that
such persons, who continue to carry on business and therefore are required to have
registration under GST, are not applying 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. Further, such persons would be required to pay
all liabilities due from them for the relevant period in case they apply for revocation of
cancellation of registration. Hence, to avoid payment of the tax liabilities, such persons may
be using the route of applying for fresh registration. It is pertinent to mention that as per the
provisions contained in proviso to sub-section (2) of section 25 of the CGST Act, a person
may take separate registration on same PAN in the same State.
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2. In order to ensure uniformity in the implementation of the provisions of law across
the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the
CGST Act, hereby issues the following instructions.
3. Sub-section (10) of section 25 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. 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.
4. It is hereby instructed that the proper officer may exercise due caution while
processing the application for registration submitted by the taxpayers, where the tax payer is
seeking another registration within the State although he has an existing registration within
the said State or his earlier registration has been cancelled. It is clarified that not applying for
revocation of cancellation of registration along with the continuance of the conditions
specified in clauses (b) and (c) of sub-section (2) of section 29 of the CGST Act shall be
deemed to be a “deficiency” within the meaning of sub-rule (2) of rule 9 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.
5. While considering the application for registration, the proper officer shall ascertain if
the earlier registration was cancelled on account of violation of the provisions of clauses (b)
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and (c) of sub-section (2) of section 29 of the CGST Act and whether the applicant has
applied for revocation of cancellation of registration. 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 sub-section (2) of section 29 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. Therefore, it is advised that
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.
6. It is requested that suitable trade notices may be issued to publicise the contents of
these instructions.
7. Difficulty, if any, in the implementation of these instructions may be brought to the
notice of the Board. Hindi version will follow.
(Upender Gupta)
Principal Commissioner (GST)
