CBIC notified the Guidelines regarding cancellation of Registration under Rule 22 (3) of CGST Rules, 2017. Rule 22 (3) of CGST Rules, 2017 specifies the procedure to be followed for processing of application filed by taxpayers for cancellation of registration wherein it says that the proper officer is required to issue an order in FORM GST REG-19 in respect of the application for cancellation of registration filed by the taxpayer within a period of thirty days from the date of the application submitted by the taxpayer and direct him to pay arrears of any tax, interest or penalty including the amount liable to be paid under subsection (5) of section 29.
Since the cancellation of registration has no effect on the liability of the taxpayer for any acts of commission/omission committed before or after the date of cancellation, the proper officer should accept all such applications within a period of 30 days from the date of filing the application, except in the two circumstances.
However, the Board said that the office of C&AG during the course of the audit has observed that in a large number of cases, the applications for cancellation of GST registration were not disposed of by tax officers within 30 days, as prescribed under Rules 22 (3) of CGST Rules 2017. It has also been observed that in some cases, the cancellation applications were found pending even after more than 120 days.