This circular provides a Standard Operating Procedure (SOP) for implementation of the provisions relating to suspension of GST registration under sub-rule (2A) of rule 21A of the CGST Rules, 2017.

It explains that registration may be suspended immediately where comparison of returns filed under section 39 with outward supply details in GSTR-1, inward supply data derived from suppliers’ GSTR-1, or other system-based analysis reveals significant discrepancies or anomalies indicating contravention of GST law and posing an immediate risk to revenue. In such cases, the taxpayer is to be electronically intimated of suspension and proposed cancellation.

Until a dedicated functionality for FORM GST REG-31 is made available on the portal, system-generated intimations and notices will be communicated through email and made available on the taxpayer’s dashboard in FORM GST REG-17. The suspended taxpayer must respond within 30 days by filing a reply in FORM GST REG-18, explaining discrepancies, filing pending returns where applicable, or complying with prescribed requirements.

Based on examination of the reply, the proper officer may revoke the suspension and drop the proceedings by issuing FORM GST REG-20, or proceed to cancel the registration by issuing FORM GST REG-19. The circular also clarifies that even after revocation of suspension, detailed verification and further proceedings may be initiated if required. The SOP aims to ensure uniform and transparent implementation of suspension provisions across field formations.