With the object of giving boost to Indian Economy and to give another opportunity to GST Dealers whose GST Registration has been cancelled Suo-Motto by GST officer due to non filing of GST returns for a specified period but dealer want to revoke their cancelled GST Registration, GST Department has introduced a new scheme, so that genuine GST dealers wants to revocate their cancelled GST registration, they can do the same without any hassle. In Today’s article, we will discuss about GST Cancellation and Revocation Process and how the dealer can take benefit of this new scheme.

Cancellation and Revocation of Registration under GST

Process of GST Cancellation is governed by Sec-29 of CGST Act, 2017. GST Cancellation may be suo motto by GST Officer or against in response to an application filed by GST Registered person. GST registration may be cancelled in following situations:

> The business has been discontinued (reason may be death of proprietor, transfer of business in form amalgamation, demerger)

> Change in constitution of business

> GST Registered person is not mandatorily, liable to get registered under GST, (reason may be turnover of business goes below the threshold limit)

> When GST Registered person contravene the provisions of the Act

> When GST Registered person does not file his GST Return

> When GST Registration has been obtained by means of fraud, willful misstatement or suppression of facts

> When a person takes Voluntary GST Registration and after registered under GST, does not commence business within 6 months from the date of GST Registration, then GST Officer has power to cancel the GST Registration

As per Rule 20 of Central GST Rules, 2017, if GST registered person wants to cancel its GST voluntarily, then he has to File GST cancellation request in FORM GST REG-16 and has to provide required details correctly. Providing inaccurate figure/detail may lead to rejection of your cancellation request.

When GST Officer has reason to believe that the registration of a person is liable to be cancelled under section 29, then he shall issue a show cause notice in Form GST REG -17

The registered person has to submit his reply within prescribed time period in Form REG -18

If the GST Officer is not satisfied by the reason of registered person as replied in Form REG -18 in relation to Show cause notice of GST Cancellation, then he will issue GST Cancellation order on Form GST REG-19 and if officer is satisfied by reply submitted by registered person then he shall drop the proceedings and pass an order in Form GST REG-20

When GST Registration has been cancelled by GST Officer in response to application filed by registered person, and registered person wants to starts its GST Registration again, then he has to apply for fresh GST Registration.

However, if GST Registration of any registered dealer is cancelled by GST officer on his own motion, the registered person has the option to apply for Revocation of Cancellation of registration, which is governed by Sec-30 of CGST Act, 2017. If we want, Revocation of cancellation of Registration, then we have to submit our application in FORM GST REG-21 to GST Officer within 30 days from the date of service of the cancellation order.

Section 29(2) of CGST Act, 2017 empowers a GST Officer to cancel GST Registration of a dealer if he contravenes the GST provisions. In past few months, we have seen that GST Registration of many dealers has been cancelled Suo- Motto by GST Officer. As per GST Provisions, if a GST dealer wants to revoke its cancelled GST registration, then they have to apply for GST Revocation within 30 days of GST Cancellation. But due to unawareness of this provision many dealers who wants to revoke the cancelled GST does not file the Revocation request within specified time period. To give relief to those dealers whose GST Registration has been cancelled by GST officer under Section 29 (2) (b)/ Section 29 (2) (c), then they still have opportunity to revoke their cancelled GST Registration.

GST department vide their order no – 01/2020-Central Tax Dated – 25th June, 2020 (The Central Goods and Services Tax (Removal of Difficulties) Order, 2020) gives a one time opportunity to all those dealers who have not filed their revocation request within 30 days of cancellation of GST Registration. According to this order, period of 30 days for filing revocation request will be calculated as follows:

For the removal of difficulties, it is hereby clarified that for the purpose of calculating the period of thirty days for filing application for revocation of cancellation of registration under sub-section (1) of section 30 of the Act for those registered persons who were served notice under clause (b) or clause (c) of sub-section (2) of section 29 in the manner as provided in clause (c) or clause (d) of sub-section (1) of section 169 and where cancellation order was passed up to 12th June, 2020, the later of the following dates shall be considered:-

a) Date of service of the said cancellation order; or

b) 31 st day of August, 2020”

After the receipt of Revocation Request, in Form GST REG-21, if the officer is satisfied by the reason/ grounds for revocation of GST Registration, then he shall revoke the cancellation of registration in FORM GST REG-22

And if the reply submitted by registered person is not satisfactory, the GST Officer may pass an order for rejection of application for revocation of cancellation and pass order in FORM GST REG-22, here it is to be noted that, GST Officer has to issue a show cause notice in FORM GST REG-23, to the applicant, asking the reason, why the application submitted for revocation under sub rule (1) of Rule 23 of Central GST Rules 2017 should not be rejected and the applicant shall furnish his reply in Form GST REG-24.

Further those dealers who want to revoke their cancelled GST Registration by taking benefit of above mentioned order, they have to file all pending GST Returns before filing revocation request. To give relief in GST Return Late filing fee, GST department has issued Notification No. 52/2020 – Central Tax Dt-24th June, 2020 to waive off whole GST return late filing fee, if dealer is filing Nil return and the GST return late filing fee will be restricted to Rs.500/-per return in case of other than nil return, if the dealer files its pending return for the period July, 2017 to January 2020. For taking benefit of this notification all pending returns must be filed between the period 01st day of July, 2020 to 30th day of September, 2020.


Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persist kindly intimate us to avoid such error for the benefits of others readers.

About the Author: The Author “CA. Shiv Kumar Sharma” can be reached at mail – [email protected] and Mobile/Whatsapp – 9911303737/ 9716118384

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Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, Delhi, India
Member Since: 03 Dec 2018 | Total Posts: 75
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. I am writing Articles for Taxguru.in, casansaar.com and in the expert panel of ca View Full Profile

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October 2021