GST REG-31 explained: system-based suspension of registration

Why REG-31 is issued

Rule 21A(2A) allows suspension where a comparison of returns with other data shows significant differences or anomalies indicating a contravention. The notice lists the discrepancy, which is often generated automatically.

• Outward supplies in GSTR-1 much higher than in GSTR-3B
• Credit claimed in GSTR-3B exceeding credit available in GSTR-2B
• Bank account details not furnished within the time under Rule 10A
• Other data anomalies flagged by the system

Effect of suspension

While suspended, you cannot make taxable supplies or issue tax invoices, and refunds are not processed. You must still file returns for the period. Suspension continues until the officer accepts the explanation or completes proceedings. When revoked, it takes effect from the date of suspension.

Keep filing returns during the suspension, because the filing obligation continues and pending returns weaken any reply.

How to reply

Reply on the portal through the notices section within the time stated, usually 30 days. Explain the difference with a reconciliation. Where tax was short-paid, pay it with interest through DRC-03 and mention the payment. Where credit was excess, reverse it. Where bank details were missing, add them and say so. Ask for a hearing if needed.

Outcomes

If the explanation is accepted, the officer revokes suspension and drops proceedings. If not, cancellation may follow by order in REG-19, which can then be addressed through revocation in REG-21 or appeal.

Mistakes to avoid

• Ignoring REG-31 because it looks automated
• Replying without numbers or a reconciliation
• Continuing to issue tax invoices while suspended
• Missing the 30-day reply period

Get it handled for you

Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.