On being dis-satisfied with the revocation application filed by the taxable person, the proper officer will issue a show cause notice in Form GST REG-23. The proper officer is required to mention the reasons based on which he believes that the revocation application so filed is liable to be rejected.

The present article briefs the circumstances under which notice in Form GST REG-23 will be issued by the proper officer; receipt of reply and final act of the proper officer and synopsis of the hierarchy of activity revolving around the issuance of notice in Form GST REG-23.

Circumstances under which notice in Form GST REG-23 will be issued by the proper officer-

The taxable person whose registration is cancelled by the proper officer has an option to file an application for revocation of cancellation of GST registration in Form GST REG-21.

If the taxable person files such revocation application in Form GST REG-21, then, the proper officer needs to appropriately verify the reasons based on which the revocation is demanded by the taxable person.

Based on the verification, if the proper officer is satisfied with the reasons provided by the taxable person, he will issue an order in Form GST REG-22 revoking cancellation of GST registration.

However, if the proper officer is not satisfied, he will pass an order in Form GST REG-05 rejecting the application filed for revocation of cancellation of GST registration. As per the provisions of Rule 23(3) of the Central Goods and Services Tax Rules, 2017, prior to the passing of an order in Form GST REG-05, the proper officer is required to issue a notice in Form GST REG-23.

The proper officer will issue such notice in Form GST REG-23 asking the taxable person to show cause as to why the revocation application filed by him should not be rejected. The proper officer is mandatorily required to mention the reasons based on which he believes that the registration of the taxable person is liable to be cancelled and accordingly the same cannot be revoked.

In nut-shell, via issuance of notice in Form GST REG-23, the taxable person is given an opportunity to put forth his reasons/ arguments for non-cancellation of GST registration. Thus, the taxable person whose registration is cancelled by the proper officer and is willing to revoke the same should seriously take up the notice received in Form GST REG-23.

Receipt of reply, if any, and final act of the proper officer-

The taxable person who has received notice in Form GST REG-23 is required to file an appropriate reply in Form GST REG-24 within a period of seven working days from the date of the service of the notice.

Finally, if the proper officer is satisfied with the reply filed by the taxable person, he will pass an order approving the revocation application. Alternatively, if the taxable person fails to file the reply or the reply filed is not satisfying the proper officer, then, he will pass an order rejecting the revocation application.

Synopsis of the hierarchy of activity revolving around the issuance of notice in Form GST REG-23-

The hierarchy of activities are summarized hereunder-

1. The proper officer, on his own motion, cancels the GST registration of the taxable person.

2. Being aggrieved by the cancellation of GST registration, the taxable person files an application for revocation of cancellation of GST registration in Form GST REG-21.

3. Dis-satisfied with the revocation application filed by the taxable person in Form GST REG-21, the proper officer will issue a notice in Form GST REG-23.

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