Revocation of Cancellation of GST Registration-Overview

Nowadays, GST is one of the most discussed topics in India. All of us are still confused about the method for registration, filling the return forms, tax challan, e-way bill and other forms for GST. If you have mistakenly registered for GST and are required to cancel your GST registration, one can only do so if the annual turnover of his/her company is less than ₹20 lakhs that is the total of sales plus unregistered purchase.

The cancellation of GST registration indicates that the taxpayer will not be a GST enrolled person anymore. He/she will not endure to pay or make GST. The results of the removal are:

• The taxpayer will not pay GST anymore
• For certain businesses, registration under GST is compulsory. If the GST registration is cancelled and business is maintained, it will involve an offence under GST and large penalties will apply.

The provisions and procedures in the GST Act cover a wide range of potential scenarios for a taxpayer. Here, we examine the procedure for revoking a cancellation order for a GST registration as well as the relevant forms. The CGST Rules, 2017, Rule 23 includes the revocation provisions.

Note: Revocation of GST registration can be initiated if a GST registration certificate has been cancelled by GST authorities.

Checklist for Revocation of GST Registration

The following information must be mandatorily defined by the applicant while using for cancellation in Form GST REG-16:

• Contact address, which involves the mobile number and email address
• Grounds of cancellation
• The desired date of cancellation
• Specifications of the value and the tax payable on the stock of inputs, the inputs possible in semi-finished goods, inputs available in complete goods, the stock of capital goods/plant and machinery
• Details of registration of the entity if the current unit merged, amalgamated, or transferred
• Specifications of the latest return filed by the taxpayer along with the ARN of the particular return.

Reasons for GST Cancellation

• Cancellation occurs when turnover is less than 20 lakhs
• Cancellation by the taxpayer in other cases like discontinuation of business, conversion of business
• Cancellation by a tax officer, if the business does not follow the established parameters.

Time Limit for Revocation of GST Registration

Within 30 days of the date the order of cancellation of GST registration was served, any registered taxable person may apply for the revocation of that cancellation. Please note that the option for GST revocation is only available in cases where the registration has been cancelled by the proper officer voluntarily. Revocation is not applicable when a taxpayer chooses to cancel their GST registration voluntarily.

Application for Revocation of GST Registration

The registered person must submit an application in FORM GST REG-21 for the cancellation of their GST registration, either directly or through a facilitation centre that has been approved by the Commissioner.

Processing of Application

The cancellation of the taxpayer’s registration may be reversed if the appropriate officer is satisfied with the justification given by the taxpayer for doing so.

GST Revocation by the proper officer is only permitted for a period of 30 days following the application date. The appropriate officer must sign an order revoking the registration cancellation in FORM GST REG-22.

Rejection of Application

The GST officer will issue a notice in FORM GST REG-23 if they are not satisfied with the GST revocation application. After receiving the notice, the applicant has seven working days from the date of service to submit a suitable response in FORM GST REG-24. Within 30 days of the date they received a reply from the applicant, the officer must pass a suitable order in FORM GST REG-05 upon receiving a suitable response from the applicant.