Revocation of Cancellation of Registration u/s 30 of CGST Act, 2017 via Removal of Difficulty Order No. 01/2020-Central Tax dated 25th June, 2020
GST has travelled 36 months journey with various milestones and stoppages. Law has seen many ups and downs. Tax payers have witnessed many such issues which were not that significant but have faced them because of many reasons of premature birth of this law. Registered persons were forced to stop their business as there was no facility to address the problem of cancellation of registration on the portal. They were forced to file appeals and go to various high courts of the country for this insignificant matter which should have been addressed technologically. Portal has been one of the most ambitious projects of the government in the history of modern India. And this has turned out to be over ambition. Law as such to a larger extent is a good and simple law but portal has made the life of taxpayer extremely difficult in these last 36 months. CBIC has come out with an removal of difficulty order vide Order No. 01/2020-Central Tax, 25th June, 2020 giving a facility to those registrations which were cancelled and could not restored because of many reasons such as time limit prescribed to apply for renovation of registration is lapsed, time for filing appeal for restoration of registration is passed.
This order shall cover only those registered persons whose registration is cancelled due to following reasons and could not be restored-:
Sub-section (2) of section 29 of the Central Goods and Services Tax Act, 2017
(b) A person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) Any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
Therefore, if any registered person who is a composition supplier and has not furnished returns for three consecutive quarters and a regular supplier has not furnished form GSTR-3B for consecutive period of six months and their registration is cancelled and they could not get them restored, this order is applied only to them.
Here only, it is to be noted that Sec 29(2) has other clauses also under which proper officer after giving notice can cancel the registration such as
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration;
If any registration was cancelled due to above stated reasons then this order is not providing any relief to them.
In author’s view, when the general amnesty was been provided then these points should also been covered under this one time relief to the trade and industry. During this pandemic, one may find many businesses which are not started even within six months after obtaining registration. And, if any registered person has contravened the law, then opportunity should be given to that person to do good the law and restart the business.
When can one apply for restoration of registration under this order?
For the purpose of calculating the period of thirty days for filing application for revocation of cancellation of registration those registered persons who were served notice under clause (b) or clause (c) of sub-section (2) of section 29 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) 31st day of August, 2020.
Therefore, if registration is cancelled then registered person can apply for revocation of registration on or before 30th September 2020.
As a parting note, one question posed
If a registered person has passed 30 days within which application for revocation can be filed under section 30(1) and then preferred appeal for restoration, can that person opt for this one time relief provided under this order also? This question needs to be answered either by clarification or any other means by CBIC.