1. The Government vides Notification No. 34/2021- Central Tax, dated 29.08.2021 has extended the timelines for filing of an application for revocation of cancelled registration to 30 September 2021 where the due date of filing of such application falls between 01.03.2020 to 31.08.2021.

2. The extension would be applicable only in those cases where registrations have been cancelled under clause (b) or clause (c) of Section 29 (2) of the CGST Act.

2.1 Clause (b) of Section 29(2): – The proper officer may cancel the registration of a taxable person paying tax under composition scheme if he has not furnished returns for three consecutive tax periods

2.3 Clause (c) of Section 29(2): The proper officer may cancel the registration of a taxable person other than composition dealer if he has not furnished returns for a consecutive period of six months.

Cancelled GST Registration

3. CBDT vide Circular No. 158/14/2021 dated 06 Sep 2021 has clarified that the date for filing revocation application of cancelled registration, where the due date of filing of such application falls between 1st March 2020 to 31st August 2021, is extended to 30th September 2021, irrespective of the status of such applications.

4. The benefit of notification would also be applicable in the following cases: –

(a) where the application for revocation of cancellation of registration is either pending with the proper officer or has already been rejected by the proper officer.

(b) The cases which are pending with the appellate authority or which have been rejected by the appellate authority.

5. Notification would be applicable in the following manner:

(a) The application for revocation not filed The taxpayer can file an application up to the 30th September 2021
(b) Application filed but pending with proper officer The officer shall process the application for revocation considering the extended timelines
(c ) The application was filed but rejected by the proper officer and the taxpayer has not filed any appeal against the rejection The taxpayer may file a fresh application for revocation and the officer shall process the application for revocation considering the extended timelines.
(d) An appeal was filed against the order of cancellation of registration and the appeal had been rejected The taxpayer can file a fresh application up to the 30th September 2021
(e) The application was filed, the proper officer rejected the application, and an appeal against the rejection order is pending before appellate authority Appellate authorities shall take cognizance of the said notification for extension of timelines while deciding the appeal
(f) The application was filed, the proper officer rejected the application and the appeal has been decided against the taxpayer the taxpayer may file a fresh application for revocation and the officer shall process the application for revocation considering the extended timelines

6. Circular No. 158/14/2021 dated 06 Sep 2021 further clarified the extension of date regarding section 30(1) proviso which was inserted with effect from 01.01.2021.

6.1 A proviso to sub-section (1) of section 30 of the CGST Act was inserted with effect from 01.01.2021 which provides for the extension of time for applying for revocation of cancellation of registration by 30 days by Additional/ Joint Commissioner and by another 30 days by the Commissioner.

6.2 Doubts have been raised whether the due date of filing applications for revocation of registration can be extended further for the period of 60 days (30 + 30) by the Joint Commissioner/ Additional Commissioner/ Commissioner, as the case may be, beyond the extended date of 30.09.2021.

6.3 It is clarified that:

(i) Where the thirty days’ time limit falls between 1st March 2020 to 31st December 2020, there is no provision available to extend the said time period of 30 days under section 30 of the CGST Act. ( as the proviso applicable with effect from 01.01.2021 ). For such cases, pursuant to the said notification, the time limit to apply for revocation of cancellation of registration stands extended up to 30th September 2021 only.

(ii) Where the time period of thirty days since the cancellation of registration has not lapsed as on 1st January 2021 or where the registration has been cancelled on or after 1st January 2021, the time limit for applying for revocation of cancellation of registration shall stand extended as follows:

(a) Where the time period of 90 days (initial 30 days and extension of 30 + 30 days) since the cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancelled registration stands extended up to 30th September 2021, without any further extension of time by Joint Commissioner/ Additional Commissioner/ Commissioner.

(b) Where the time period of 60 days (and not 90 days) since the cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended up to 30th September 2021, with the extension of timelines by another 30 days beyond 30.09.2021 by the Commissioner, on being satisfied, as per proviso to sub-section (1) of section 30 of the CGST Act

(c) Where the time period of 30 days (and not 60 days or 90 days) since the cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended up to 30th September 2021, with the extension of timelines by another 30 days beyond 30.09.2021 by the Joint/Additional Commissioner and another 30 days by the Commissioner, on being satisfied, as per proviso to sub-section (1) of section 30 of the CGST Act.

7. ILLUSTRATION

Sl Date of cancellation The due date for the Revocation application (30 days from cancellation ) No. of days ( since the date of cancellation ) elapsed by 31.08.2021 Extended time limit to apply for revocation Remarks
(a) 15.11.2020 15.12.2020 NA 30.09.2021
(b) 31.05.2021 30.06.2021 (30+31+31) 92 days 30.09.2021 .
(c ) 30.06.2021 30.07.2021 (31+31) 62 days 30.10.2021 Extension of timelines by another 30 days beyond 30.09.2021 may be given by the Addl / Joint Commissioner, on being satisfied
(d) 31.07.2021 30.08.2021 31 days 29.11.2021 Extension of timelines by another 30 days beyond 30.09.2021 by the Joint/Additional Commissioner and another 30 days by the Commissioner, on being satisfied

8. Extension of time limit for filing of revocation application of cancelled registration will be a big relief to a large number of taxpayers. These taxpayers could not file the returns in time due to difficulties caused by the COVID-19 pandemic and their registration got cancelled for non-filing of the returns. Such taxpayers are advised to avail the benefit of the extension.

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Disclaimer: The article is for education purposes only.

The author may be approached at [email protected]

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