GST
Can a block lead to cancellation of my registration
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Facts
A block does not cancel your registration by itself. But if the credit is later found to be wrongly availed, it can be one of the grounds for cancellation proceedings, so take the block seriously.
Provisions and law
- Rule 86A(1), CGST Rules 2017Officer not below Assistant Commissioner may disallow debit of ITC, for recorded reasons, to pay any liability or claim any refund, where the credit looks fraudulent or ineligible on listed grounds
- Sec 29, CGST Act 2017Cancellation or suspension of registration
- Rule 21, CGST Rules 2017Grounds for cancellation of registration
Analysis
Rule 86A is a temporary measure. Cancellation needs a separate notice under Sec 29 and Rule 21, with a chance to reply. Keep filing returns and paying tax, and defend the credit with evidence. Example: if a REG-17 notice comes alleging ITC violations, reply within the time with your evidence file.
Conclusion
- Keep returns and payments up to date.
- Defend the blocked credit with evidence.
- Watch for any REG-17 or REG-31 notice.
- Reply on time with advice.
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