After the passage of more than 2 Years of GST Implementation, now GST Department becomes active in relation to GST Defaulters and starts cancelling GST Registration of GST Defaulters which may be in form GST Return Defaulters, GST Bogus Dealers issuing Fake GST Invoices etc. In Today’s article, we will discuss GST Cancellation and Revocation Process and activities which lead to GST Registration termination and steps to be taken, if your GST Registration is cancelled, and you want to continue same GST Number for your business activities.

Cancellation GST Registration

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 the following situations:

  • The business has been discontinued (reason may be the death of the 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 contravenes 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 the 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.

Note: As per Section 29 (3) of CGST Act, 2017, cancellation of GST Registration shall not affect the liabilities arising before the date of GST Cancellation. Due care must be given that; the registered person is wholly responsible for all acts done before GST Cancellation even if GST Cancellation order determines zero liability.

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

Form GST REG 17

The registered person has to submit his reply within the 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.

Form GST REG 19

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

Revocation of Cancellation of 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.

Note: No application for revocation shall be filed, if the registration has been cancelled for the failure of the registered person to furnish returns unless such returns are furnished and any taxes due have been paid.

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.

Caution:  If you are a GST Registered person dealing properly and having stock in hand and by any mistake (due to unawareness of GST law) your GST number is cancelled, it is suggested that before proceeding towards submitting any reply to GST Officer, please make sure that, you must have adequate knowledge of GST law, or consult GST Expert, because nowadays, GST Department is very strict in GST Cancellation and Revocation Process, a wrong reply may cancel your GST Number which may be harsh to the registered person according to its Stock holding and its GST liability on his stock in hand. 

This article is for the purpose of information and shall not be treated as a solicitation in any manner and for any other purpose whatsoever. It shall not be used as a legal opinion and not be used for rendering any professional advice. This article is written on the basis of the 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 persists kindly intimate us to avoid such error for the benefits of other readers.

The Author “CA. Shiv Kumar Sharma” can be reached at mail – and Mobile/Whatsapp – 9911303737/ 9716118384

Author Bio

Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, New Delhi, IN
Member Since: 03 Dec 2018 | Total Posts: 29
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. I have Qualified my B.Com (H) in 2010 And Cleared CS- Executive Exam in June 2013. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. View Full Profile

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  1. says:

    sir we applied volunterly for cancellation of my gstin and approved by the tax officer. now our gstin is stands in cancelled status. how we revoke my gstin. please clarify

  2. subbaiah says:

    sir we applied volunterly for cancellation of my gstin and approved by the tax officer. now our gstin is stands in cancelled status. how we revoke my gstin. please clarify

  3. subbaiah says:

    we filed cancellation of my gstin by voluntery and accepted the tax officer and my gstin now stands in cancelled status. how we revoke my gstin

  4. Nitin Khandelwal says:

    Tax officer has cancelled my GSTIN with effect from 22.11.2019. when I go to apply for revocation on 24.12.2019 it show a massage that please file all pending return by 24.12.2019. it means 30 days period over. Can I file all pending return and still can apply fore revocation even after 30 days. Please suggest I m in trouble

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