## Suspension of Registration [Section 29]

While cancellation proceedings are pending, the P.O. may suspend the registration.

### Effective Date of Suspension

Scenario	Effective Date
(A) Voluntary cancellation by registered person	Later of: <br>• Date of submission of application <br>• Date from which cancellation is sought
(B) Cancellation initiated by department	Date determined by the proper officer

### Effect of Suspension

During the suspension period, the person:

Shall NOT make any taxable supply (cannot issue tax invoices, and accordingly cannot charge tax).
Shall NOT furnish any return.

### Revocation of Suspension

On completion of cancellation proceedings, suspension stands revoked from the suspension date itself.
Once suspension is lifted (because the registration is restored), the person must comply with:
Revised tax invoice provisions, AND
First return provisions — for the period of suspension.

This ensures all transactions during the suspension period get proper documentation once registration is restored.

Worked example

### Example 1

Example 1: M/s XYZ applied for cancellation on 1st May 2025, seeking effective date as 1st April 2025. From which date does suspension take effect?

Answer: Later of (1st May application date) and (1st April cancellation date sought) = 1st May 2025.

### Example 2

Example 2: A registered person is under suspension. Can he issue tax invoice?

Answer: No. During suspension, he shall not make any taxable supply, shall not issue tax invoice, and shall not charge tax.

### Example 3

Example 3: Suspension lasted from 1st June to 31st July (2 months). Cancellation proceedings closed favourably. How are supplies during suspension treated?

Answer: Suspension is revoked from its inception. The person must issue revised tax invoices and file first return for the suspension period — bringing those supplies into compliance retrospectively.

⚠️ Common exam mistakes

Treating suspension as the same as cancellation — suspension is a temporary measure during pending proceedings.
Forgetting that during suspension, no return is required to be filed.
Missing the 'later of' rule for voluntary cancellation suspension date — students often default to application date only.
Not knowing that revised tax invoices and first return apply for the suspension period once suspension is revoked.

Reference: Section 29 — CGST Act, 2017

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