Revocation of Cancellation of GST Registration

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Under the GST Act, non-compliance such as failure to file returns or pay dues can lead to GST registration cancellation, often initiated suo moto by authorities. To reinstate their GST number, businesses must apply for the revocation of cancellation of registration within 30 days of receiving the order of cancellation. This involves submitting the application for revocation of cancellation, addressing compliance issues, and, if needed, filing a reply in Form GST REG-24. Meeting the time limit for revocation is crucial to avoid the permanent cancellation of your new GST registration. This guide simplifies the process and ensures smooth reinstatement.

Understanding Rule 23: Revocation of Cancelled GST Registration

Rule 23 of the Central Goods and Services Tax (CGST) Rules, 2017, outlines the procedure for revocation of cancellation of GST registration. This provision is crucial for registered taxpayers whose GST registration has been canceled by the proper officer on their own motion. Below is a detailed exploration of this rule, including its provisions, procedures, and implications for taxpayers.

1. Application for Revocation

GST Revocation Time Limit

A registered person whose GST registration has been canceled can submit an application for revocation using FORM GST REG-21. This application must be filed within 90 days from the date the cancellation order was served. The application can be submitted directly at the common portal or through a Facilitation Centre notified by the Commissioner.

Extension of Time Limit

The initial 90-day period can be extended up to an additional 180 days if sufficient cause is shown, and reasons are recorded in writing by the Commissioner or an authorized officer not below the rank of Additional Commissioner or Joint Commissioner.

Total time allowed for filing Revocation application for Cancelled GST Registration is 90 days + 180 days = 270 days.

2. Conditions for Filing the Application

There are specific conditions under which a taxpayer can apply for revocation:

  1. If the registration was canceled due to failure to furnish returns, the taxpayer must first file all pending returns and pay any due taxes, interest, penalties, and late fees before applying for revocation
  2. All returns due from the date of cancellation until the date of revocation must be filed within 30 days from the order of revocation.

3. Processing the Application

Upon receiving the application:

  1. The proper officer must assess whether there are sufficient grounds for revoking the cancellation. If satisfied, they will issue an order in FORM GST REG-22 within 30 days from receiving the application and communicate this decision to the applican
  2. If not satisfied, they may reject the application through an order in FORM GST REG-05, providing reasons for rejection.

4. Show Cause Notice

Before rejecting an application, the proper officer is required to issue a show cause notice in FORM GST REG-23, asking the applicant to explain why their application should not be rejected. The applicant must respond within seven working days using FORM GST REG-24

5. Final Decision on Revocation

After receiving the response from the applicant:

  1. The proper officer will review it and make a decision within another 30 days based on the information provided in FORM GST REG-24
  2. If satisfied with the applicant’s response, they will proceed with revoking the cancellation; otherwise, they will communicate their rejection.

6. Implications of Revocation

Revoking a cancellation restores a taxpayer’s ability to conduct business under GST law. It allows them to procure taxable supplies of goods and services again and ensures compliance with tax regulations moving forward.

Key Steps to Follow When Applying for the Revocation of a Cancelled GST Registration

Revocation of GST registration is the process of reinstating a cancelled GST registration by tax authorities. Follow these steps to apply:

  1. Check Eligibility: Ensure the cancellation was initiated by the authorities, and the application is within the stipulated 90-days or 180 days period from the cancellation order.

  2. Review the Cancellation Order: Understand the reasons for cancellation and address compliance issues.

  3. Resolve Compliance Issues: File all pending GST returns and clear outstanding dues, including interest and penalties.

  4. Login to the GST Portal: Use your credentials to access the GST portal and navigate to ‘Services > Registration > Application for Revocation’.

  5. Submit Form GST REG-21: Fill out the form, provide reasons for revocation, and attach necessary documents like return filing proofs and payment receipts.

  6. Upload Documents: Ensure all supporting documents are correctly formatted and authenticated.

  7. Submit Application: Use a Digital Signature Certificate (DSC) or e-Signature to finalize the submission.

  8. Track Status: Monitor the application status on the GST portal. Respond promptly to any notices or queries from the tax officer.

  9. Approval or Rejection: If approved, the GST registration will be reinstated. If rejected, reasons will be provided, and you can appeal the decision.

How long does the revocation process typically take

The revocation process for a canceled GST registration typically takes a structured timeframe, which can be broken down as follows:

  1. Application Submission: After the cancellation order is received, the taxpayer has 90 days to submit the application for revocation using Form GST REG-21.
  2. Processing Time by Proper Officer:
    • Once the application is submitted, the proper officer has 30 days to either approve the revocation by issuing an order in Form GST REG-22 or reject it through Form GST REG-05.
  3. Response to Show Cause Notice: If the proper officer issues a show cause notice (Form GST REG-23) regarding the application, the applicant must respond within seven working days using Form GST REG-24.
  4. Final Decision Post-Response: After receiving the applicant’s response, the proper officer will review the information and make a decision within another 30 days.

Overall Timeline

In summary, the entire process can take approximately two to three months, depending on various factors such as:

  1. Timeliness of application submission.
  2. Promptness in responding to show cause notices.
  3. The complexity of the case and any additional clarifications required by the proper officer.

Therefore, if all steps are followed diligently and there are no delays, taxpayers can expect to complete the revocation process within this timeframe.

GST Revocation Letter Format

GST Revocation Letter Sample Format Page-1

Revocation of Cancelled GST Registration

GST Revocation Letter Sample Format Page-2

GST Revocation Letter Sample Format

GST Revocation Letter Format in word file

Conclusion

Rule 23 provides a structured process for taxpayers to regain their GST registration after it has been canceled by a proper officer. Understanding this rule is essential for registered persons who wish to navigate through cancellation issues effectively and ensure their compliance with GST regulations. By adhering to these guidelines and timelines, taxpayers can safeguard their business operations and maintain their legal standing under India’s tax framework.

FAQs on GST Revocation

The GST revocation rule allows a registered person whose GST registration has been canceled by the proper officer to apply for revocation of that cancellation. This process is governed by Rule 23 of the Central Goods and Services Tax (CGST) Rules, which outlines the procedure and conditions for revocation.

Cancellation refers to the termination of a GST registration, either voluntarily by the taxpayer or by the tax authorities due to non-compliance. Revocation, on the other hand, is the process of reversing that cancellation, restoring the taxpayer’s registration status.

If you wish to apply for revocation after 90 days, you must demonstrate sufficient cause for the delay and seek an extension from the Commissioner or an authorized officer. This extension can be granted for up to an additional 180 days.

When writing a reason for revocation, clearly state the circumstances that led to the cancellation and provide any supporting evidence or documentation that justifies your request for revocation.

You can check the status of your GST revocation application by logging into the GST portal and navigating to the ‘Services’ section, where you can track your application using the Application Reference Number (ARN).

Typically, applications for revocation must be made within 90 days of cancellation. However, under certain circumstances, extensions may be granted up to 180 days. Beyond this period, revocation is generally not permitted. High Court can grant relief if there is sufficient exceptional reason for delay.

In case of GST Revocation after 270 days only High Court can grant relief if there is sufficient exceptional reason for delay.

To file a GST revocation application, log in to the GST portal, navigate to ‘Services > Registration > Application for Revocation of Cancelled Registration’, complete Form GST REG-21, and submit it along with any required documents.

To reactivate a canceled GST registration, you must apply for revocation using Form GST REG-21 within the stipulated time frame and meet all compliance requirements.

When GST registration is canceled, the taxpayer loses their ability to collect GST, issue tax invoices, and claim Input Tax Credit (ITC). This can significantly impact business operations.

Yes, there is a time limit of 90 days from the date of service of the cancellation order to apply for revocation. Extensions may be granted under specific circumstances.

No, once your GST registration is canceled, you cannot file further returns until your registration is reinstated through successful revocation.

You can only apply for revocation if your registration was canceled by the proper officer on their own motion; voluntary cancellations do not allow for subsequent revocations.

Essential documents include Form GST REG-21, proof of compliance with tax obligations (like filed returns), financial statements, bank statements, and any additional supporting documentation relevant to your case.

If your registration is successfully revoked, you can reclaim your ability to issue invoices and claim ITC on purchases made during your registered status.

The entire process typically takes about two to three months, depending on timely submissions and responses to any queries from tax authorities.

The time limit for appealing the revocation of a canceled GST registration is three months from the date of receiving the rejection order. This allows taxpayers to contest the decision made by the proper officer regarding their application for revocation.

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