How to Avoid Rejection of Your GST Registration Application: A Complete Guide to Responding to the Notice in Form GST REG-17

WHAT IS THE NOTICE IN FORM GST REG-17:

I understand that you are interested in knowing more about the notice in Form GST REG-17, which is issued by the tax official for the cancellation of GST registration. Here are some points that I have gathered.

• The notice in Form GST REG-17 is issued by the proper officer when he/she has reasons to believe that the GST registration of a person is liable to be cancelled for any of the following reasons:The person has not filed GST returns for three consecutive tax periods (in case of composition scheme) or six consecutive tax periods (in any other case).The person has obtained GST registration by fraud, wilful misstatement, or suppression of facts.The person has not commenced business within six months from the date of voluntary registration.The person has contravened any provision of the GST Act or Rules.
• The notice in Form GST REG-17 requires the person to furnish a reply within seven working days from the date of service of the notice, explaining why his/her registration should not be cancelled.
• The notice in Form GST REG-17 also directs the person to appear before the proper officer on a specified date and time for a personal hearing, if any.
• If the person fails to furnish a reply or appear for a personal hearing, the proper officer may cancel the registration on the basis of available records and merits.
• The person can also file an application for revocation of cancellation of registration within 30 days from the date of service of the cancellation order, if he/she is aggrieved by the decision of the proper officer.

To reply back to this notice, the applicant needs to follow these steps:

• Login to the GST portal with the TRN (Temporary Reference Number) or the login credentials.
• Click Services > Registration > Application for Filing Clarifications.
• Enter the Reference No. of Notice or the Application Reference Number (ARN) and click Search.
• Select Yes or No in the Modification in the Registration Application filed field. If Yes, then edit the details and upload the additional documents as required. If No, then enter the additional information and query response in the respective fields.
• Upload any supporting document by clicking Choose File.
• Relevant supporting documents should be in PDF or JPEG format, with a file size limit of 1 MB per document.
• Select the Verification checkbox and select the Name of Authorized Signatory from the drop-down list. Enter the Place from where application is being filed.
• Submit the application using SUBMIT WITH DSC or SUBMIT WITH E-SIGN as applicable/ eligible.
• The applicant can also view the status of his/her response to the notice on the GST portal, by selecting the option Track Application Status under Services > Registration .
• If the tax official is satisfied with the response of the applicant, he/she will approve the application and issue a certificate of registration in Form GST REG-06. However, if the tax official is not satisfied with the response, he/she will reject the application and issue an order for rejection in Form GST REG-05 .
• The applicant can appeal against the rejection order within 30 days from the date of receipt of the order, by filing an application in Form GST APL-01 to the Appellate Authority .

The applicant should reply to the notice within 7 working days from the date of receipt of notice, otherwise the application may be rejected by default. The reply should be to the point and mention case law, if available. The reply should also use polite and professional language and avoid any unnecessary arguments.

WHAT SHOULD BE YOUR REPLY:

The message that you should reply with supporting documents depends on the reason for the notice and the information or clarification that is sought by the tax official. However, a general format of the message could be something like this:

Subject: Reply to Notice in Form GST REG-17

Respected Sir/Madam,

I have received your notice in Form GST REG-17 dated DD/MM/YYYY, regarding the registration application for GSTIN XXXXXXXXXXXXXXXX. I hereby submit my reply along with the supporting documents as follows:

• If the notice seeks additional information or clarification on any particular field or document, then provide the relevant details and attach the document as proof. For example, if the notice asks for proof of address of the principal place of business, then provide a copy of the electricity bill or rent agreement or any other valid document that shows the address.
• If the notice proposes to reject the application for some reason, then provide a counter-argument with evidence to support your claim. For example, if the notice says that your business activity is not eligible for GST registration, then provide a copy of your business license or certificate or any other document that shows your business activity and eligibility.
• If you have made any modification in the registration application filed, then mention the changes and the reasons for them. For example, if you have changed your trade name or email address or bank account details, then mention the new and old values and provide a justification for the change.

I request you to kindly consider my reply and grant me the registration certificate for GSTIN XXXXXXXXXXXXXXXX. I assure you of my full cooperation and compliance with the GST laws and rules.

Thanking you,

Yours faithfully,

Name of Applicant Signature of Applicant Date and Place.