The Goods and Services Tax (GST) registration granted to a business can be cancelled by the tax authorities or voluntarily surrendered by the registered person. However, there are provisions to get the cancelled GST registration restored through a revocation process.
When Can GST Registration be Cancelled?
As per Section 29 of the CGST Act, 2017, the proper officer can cancel GST registration suo moto or on application by the registered person. The registered person can apply for cancellation in case of discontinuance of business or transfer of business for any reason.
In case of death of the proprietor of a proprietorship firm, the legal heirs can apply for voluntary cancellation. The tax officer can cancel registration if business is discontinued, registered person has contravened provisions of the GST Act, a composition taxpayer has not furnished returns for 3 consecutive tax periods, or in some other cases.
Time Limit to Apply for Revocation of Cancelled GST Registration
If registration is cancelled suo moto by the proper officer, the registered person can apply for revocation within 90 days of service of cancellation order as per Section 30(1) of CGST Act. This time limit can be extended by the Commissioner for another 180 days if sufficient cause is shown.
As per Rule 23(1) of CGST Rules, the revocation application has to be made in **FORM GST REG-21** within the prescribed time limit.
Conditions for Revocation Application
As per Section 30(1) proviso of CGST Act, in case registration is cancelled for non-filing of returns, the revocation application can only be made after furnishing all pending returns and paying due tax, interest and other amounts.
Rule 23(1) of CGST Rules also provides that the applicant must have filed all returns due from the date of cancellation order till the revocation application date. Any outstanding tax, interest, penalty or late fees must also be paid before applying.
Procedure for Revocation of Cancelled GST Registration
The steps involved in revocation of cancelled GST registration are:
i) Filing of Application: The registered person has to file FORM GST REG-21 for revocation of cancellation within the prescribed time limit and fulfilling the required conditions.
ii) Examination by Proper Officer: The officer will examine the application and verify compliance with requirements of law.
iii) Revocation Order: If satisfied, the officer will revoke the cancellation within 30 days from receipt of application in FORM GST REG-22.
iv) Notice for Clarification: If not satisfied, the officer will issue a notice in FORM GST REG-23 asking the applicant to provide clarification/information within 7 working days.
v) Submission of Clarification: Applicant has to furnish clarification in FORM GST REG-24 within the stipulated time.
vi) Opportunity for Personal Hearing: If clarification is not satisfactory, personal hearing will be granted to the applicant.
vii) Acceptance or Rejection: After hearing, the officer can accept the revocation application or reject it in FORM GST REG-05 after recording reasons.
viii) Filing of Due Returns: The registered person has to file all due GST returns within 30 days from the date of revocation order.
Effect of Revocation of Cancelled GST Registration
– The liability to pay tax for the period prior to date of cancellation remains even after revocation of cancellation.
– If registration is cancelled retrospectively, returns have to be filed for the period from such effective date of cancellation to the revocation date.
– Revocation of state GST registration results in automatic restoration of central GST registration, being a single registration under GST.
– If registration was suspended for non-filing of returns, it gets automatically revoked once all pending returns are filed.
Conclusion
Revocation of cancelled GST registration enables taxpayers to restore their compliance status after addressing the deficiencies due to which cancellation was ordered. The detailed procedure, time limits and conditions specified in GST law ensure that only compliant taxpayers can get the registration restored. Businesses should be careful to avoid cancellation of GST registration due to non-compliance and take timely action for revocation if cancellation occurs.
CBIC Information Brochure on Revocation of Cancelled GST Registration (Nov. 2023)