Clarification regarding extension of time limit to apply for revocation of cancellation of registration in view of Notification No. 34/2021-CT dated 29.08.2021

Government has issued Circular No. 158/14/2021-GST dated 06.09.2021 in order to clarify circumstances in which benefit of Notification No.34/2021-CT dated 29.08.2021 would be available

Notification No. 34/2021-CT dated 29.08.2021 was issued to extend the timelines for filing of application for revocation of cancellation of registration upto 30.09.2021.

Applications covered under the scope of the said notification

It is clarified that the benefit of said notification is extended to all the cases where:

1. cancellation of registration has been done due to non-filing of return for 3 consecutive tax periods by composite taxable person or due to non-filing of return for continuous period of 6 months by regular taxable person under section 29 of the CGST Act, 2017 and

2. the due date of filing of application for revocation of cancellation of registration falls between 1st March, 2020 to 31st August, 2021

The said notification would be applicable in the following manner

a) application for revocation of cancellation of registration has not been filed by the taxpayer-

In such cases, the applications for revocation can be filed upto the extended timelines as provided vide the said notification. Such cases also cover those instances where an appeal was filed against order of cancellation of registration and the appeal had been rejected.

b) application for revocation of cancellation of registration has already been filed and which are pending with the proper officer

In such cases, the officer shall process the application for revocation considering the extended timelines as provided vide the said notification.

c) application for revocation of cancellation of registration was filed, but was rejected by the proper officer and taxpayer has not filed any appeal against the rejection –

In such cases, taxpayer may file a fresh application for revocation and the officer shall process the application for revocation considering the extended timelines as provided vide the said notification.

d) application for revocation of cancellation of registration was filed, the proper officer rejected the application and appeal against the rejection order is pending before appellate authority-

In such cases, appellate authorities shall take the cognizance of the said notification for extension of timelines while deciding the appeal.

e) application for revocation of cancellation of registration was filed, the proper officer rejected the application and the appeal has been decided against the taxpayer-

In such cases, taxpayer may file a fresh application for revocation and the officer shall process the application for revocation considering the extended timelines as provided vide the said notification.

Extension of time limit to file application for revocation of cancellation of registration beyond 30.09.2021
Legal Provisions

As per proviso to Section 30(1) of CGST Act, 2017 the time limit to file application for revocation of cancellation of registration of 30 days from the date of service of the cancellation order may be extended on sufficient cause being shown and for reasons to be recorded in writing

(a) by the Additional Commissioner (AC) or the Joint Commissioner (JC), for a period not exceeding 30 days

(b) by the Commissioner, for a further period not exceeding 30 days, beyond the period specified in clause (a)

Clarification

In light of the above legal provisions, it is clarified that:

1. Where registration is cancelled before 01.01.2021

Where the original time limit of 30 days falls between 01.03.2020 to 31st December 2020 then pursuant to the said notification, the time limit to apply for revocation of cancellation of registration stands extended up to 30th September, 2021 only and no further extension of 60 days will be available as is provided in proviso to Section 30(1) of CGST Act, 2017 because this proviso came into effect from 01.01.2021.

2. Where registration is cancelled on or after 01.01.2021

a) Where the time period of 90 days (original 30 days and extension of 30 + 30 days) from date of service of the cancellation order has expired as on 31.08.2021 then the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021 only without any further extension of time by JC/AC/ Commissioner under proviso to Section 30(1) of CGST Act, 2017

b) Where the time period of 60 days [original 30 days and period of 30 days extended by AC or JC under clause (a) of proviso to Section 30(1)] from the date of service of the cancellation order has expired as on 31.08.2021 then the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021. Also the timeline to file application for revocation of cancellation of registration can be further extended by another 30 days beyond 30.09.2021 by the Commissioner as per clause (b) of proviso to Section 30(1) of CGST Act, 2017 on being satisfied that there was sufficient cause for not filing the application within the extended period i.e. upto 30.09.2021.

c) Where the original time period of 30 days from the date of service of cancellation order has expired as on 31.08.2021 then the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021. Also the said time limit will be extended by another 30 days beyond 30.09.2021 by the JC/AC i.e. upto 30.10.2021 on being satisfied that there was sufficient cause for not filing the application within the extended period i.e. upto 30.09.2021 as per clause(a) of proviso to Section 30(1) of CGST Act, 2017. It will be further extended by another 30 days by Commissioner i.e. upto 29.11.2021 on being satisfied that there was sufficient cause for not filing application within the extended period i.e. upto 30.10.2021 as per clause (b) of proviso to Section 30(1) of CGST Act, 2017.

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