Section 29 CGST Act 2017
[ Section 29 CGST Act 2017 Notified w.e.f 22.06.2017 vide Notification No. 1/2017 – Central Tax Dated 19.06.2017 ]
Section 29 CGST Act 2017 explains Cancellation of registration and is Covered in Chapter VI Registration
[Note : CGST Act 2017 also known as CENTRAL GOODS AND SERVICES TAX ACT, 2017 assented by the President of India on 12-4-2017 -An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. ]
Cancellation 2 [or suspension] of registration .
29. (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,—
(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business; or
3 [Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed. ]
(2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,—
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or [ Refer Note -4, 5]
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or [ Refer note -4, 5]
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.
3 [Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed. ]
(3) The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
(4) The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act.
(5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: ( Note -1 )
Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed ( Note -1 ) or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher.
(6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.
Notes on Section 29 of CGST Act 2017
6. Circular No 99/18/2019 GST Dated 23rd April 2019 Seeks to clarify the extension in time under sub-section (1) of section 30 of the Act to provide a one time opportunity to apply for revocation of cancellation of registration on or before the 22nd July, 2019 for the specified class of persons for whom cancellation order has been passed up to 31st March, 2019.
5. Order No. 5/2019-GST Dated 23rd April, 2019 Seeks to extend the time limit for filing an application for revocation of cancellation of registration for specified taxpayers.
4. Circular No 95/14/2019 GST Dated 28.03.2019 : Registration Application verification by GST officer if Registration cancelled and not revoked but applied fresh
3.Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from 01.02.2019
2. Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified.
1 : Refer Rule 44 CGST Rules 2017 explains Manner of reversal of credit under special circumstances and is covered in Chapter V : Input Tax Credit : Inserted by the Central Goods and Services Tax (Second Amendment) Rules, 2017, w.e.f. 1-7-2017.
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