GST Registration will be Cancelled if Not Filed GSTR3B for two tax periods

The Delhi State Government has notified Delhi Goods and Services Tax (Second Amendment) Rules, 2022 which state that failure to submit GSTR-3B for a continuous period of six months or two tax periods will result in GST registration cancellation.

The Released Notification has provided, “In the Delhi Goods and Services Tax Rules, 2017 (herein after referred to as the said rules), in rule 21, after clause (g), the following clauses shall be inserted, namely:- ―(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.”

When notifying the Central Goods and Services Tax (Second Amendment) Rules, 2022, the Central Board of Indirect Taxes and Customs (CBIC) added two additional clauses to Rule 21 for the cancellation of GST registration.

Rule 37 also amended by CBIC, which states, “(1) A registered person, who has availed of input tax credit on any inward supply of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, but fails to pay to the supplier thereof, the amount towards the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section(2) of section 16, shall pay an amount equal to the input tax credit availed in respect of such supply along with interest payable thereon under section 50, while furnishing the return in FORM GSTR-3B for the tax period immediately following the period of one hundred and eighty days from the date of the issue of the invoice:

Provided that the value of supplies made without consideration as specified in Schedule I of the said Act shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16:

Provided further that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16.;

(2) Where the said registered person subsequently makes the payment of the amount towards the value of such supply along with tax payable thereon to the supplier thereof, he shall be entitled to reavail the input tax credit referred to in sub-rule (1).”

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