prpri Importance of Applying Revocation of Cancellation of GST Registration Importance of Applying Revocation of Cancellation of GST Registration

The Central Board of Indirect Taxes and Customs has recently released a clarification regarding verification for grant of New Registration under GST Act vide Circular No. 95/14/2019-GST dated 28-03-2019. Department has made it clear that assessee cannot escape himself from paying off statutory dues and apply for fresh registration under GST Act.

Recently, a large number of registrations have been cancelled by the proper officer under the provisions of sub-section (2) of section 29 of the CGST Act read with rule 21 of the CGST Rules on account of non-compliance of the said statutory provisions.  It has been observed by the GST authority that such persons, who continue to carry on business and therefore are required to have registration under GST, are not applying for revocation of cancellation of registration as specified in section 30 of the CGST Act read with rule 23 of the CGST Rules. Further, in order to continue their operations, such persons are following a route of fresh registration in order to avoid payment of GST dues and filing of pending returns.

It is discretion of proper officer to reject the application of GST registration if the information or documents submitted by applicant are found to be deficient. It is possible that the applicant may suppress some material information in relation to earlier GST registration.

It is hereby instructed that the proper officer may exercise due caution while processing the application for registration submitted by the taxpayers, where the tax payer is seeking another registration within the State although he has an existing registration within the said State or his earlier registration has been cancelled. It is clarified that not applying for revocation of cancellation of registration along with the continuance of the conditions specified in clauses (b) and (c) of sub-section (2) of section 29 of the CGST Act shall be deemed to be a “deficiency” within the meaning of sub-rule (2) of rule 9 of the CGST Rules. The proper officer may compare the information pertaining to earlier registrations with the information contained in the present application, the grounds on which the earlier registration(s) were cancelled and the current status of the statutory violations for which the earlier registration(s) were cancelled. The data may be verified on common portal by fetching the details of registration taken on the PAN mentioned in the new application vis-a-vis cancellation of registration obtained on same PAN. The information regarding the status of other registrations granted on the same PAN is displayed on the common portal to both the applicant and the proper officer. Further, if required, information submitted by applicant in S. No. 21 of FORM GST REG-01 regarding details of proprietor, all partner/Karta/Managing Directors and whole time Director/Members of Managing Committee of Associations/Board of Trustees etc may be analysed vis-à-vis any cancelled registration having same details.

Hence, all the applicants, who are facing same issue, are advised to initiate the revocation of cancellation of GST registration instead of applying fresh registration to avoid any kind of operational hurdle in their business

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided. All efforts have been made to provide you comprehensive knowledge about the form and its application. In case, you need any professional assistance; drop us an email at  or whatsapp @ 9999596103.

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August 2021