In recent times, we have witnessed a lot of cancellation of GST registrations by the Department due to taxpayers not complying with law by not filing the GST returns and payment of liability. GST being a new tax regime, small taxpayers are still trying to understand the law and importance of complying with law. The cost of non-compliance is huge under GST regime which is understood by small taxpayers only after cancellation of registration in some of the instances. Taxpayers are facing enormous difficulties with these cancellations. But recent 39th GST council meeting outcome that application for revocation of cancellation of registration has been extended till 30th June 2020 has been a great relief.

As per section 29(2) of CGST Act 2017, a Proper Officer may cancel the registration Suo motu after giving an opportunity to be heard in below cases

(a) registered taxable person has contravened the provisions of Act or Rules

(b) a Composition dealer registered under Section 10 has not furnished returns for three consecutive periods

(c) any taxable person other than composition dealer has not furnished the returns for a consecutive period of six months

(d) a person who has taken voluntary registration has not commenced the business within six months from date of registration

(e) registration taken by means of fraud, willful misstatement or suppression of facts

CBEC has also issued an SOP to be followed in case of non-filers of returns vide circular No 129/48/2019-GST dated 24th December 2019 detailing the process to be followed by the officers in case of returns not filed as per the due dates.

The process of revocation of registration is possible only after filing the pending returns and amount due as tax, interest and late fee has been paid. The process is explained below

a) file the pending returns after payment of liability

b) application for revocation of cancellation of registration in GST REG-21 within 30 days from the date of order of cancellation

c) Proper officer can revoke cancellation if he is satisfied by an order in form GST REG-22 within 30 days from date of receipt of application

d) Proper office may issue show cause notice in form GST REG-23 requiring applicant to show cause if he is not satisfied with the application for revocation

e) The applicant shall furnish reply in form GST REG-24 within 7 days from receipt of show cause notice

f) Proper officer may grant the revocation if satisfied or reject within 30 days from date of receipt of reply

Further, if the 30 days time limit for application for revocation expired then the process to revoke the cancellation is to file pending returns, apply for appeal with Appellate authority as per section 107(1). Authority if found satisfied may accept appeal and revoke registration cancellation.

The cancellation of registration has impacted the business of small taxpayers however they are not able to revoke the cancellation mainly in many instances not able to file the pending returns due to late filing fee being more than the tax liability. This has led to chaos and difficulty for taxpayers.

The extension for filing revocation was given upto 31st March 2019 against Order-5/2019 but the cases of cancellation by department is continuing. It is also observed that many of the taxpayers are still not used to the e-mail notices and not considering the same seriously and therefore have not utilised the revocation time limit.

Recently in 39th GST council meeting it was announced that where registrations have been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filed up to 30.06.2020 (extension of period of application as one-time measure to facilitate those who want to conduct business). Notification awaited in this regard.

This is a great relief for small tax payers who’s registrations has been cancelled but want to continue their business with GST registration, however one time waiver of late filing fee for such tax payers after analyzing case to case basis by proper officer may be considered to help streamline the process much faster and providing an opportunity for the genuine tax payers who are interested to continue their business with compliance.

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2 Comments

  1. zeeshan raza lari says:

    आदरणीय महोदय

    मेरा जी.एस.टी. पंजीकरण संख्या 09AYCPL5877C1Z8 दिनांक 09/10/2019 जी.एस.टी. रिटर्न नहीं भरने से पंजीकरण रद्द कर कर दिया गया है, मै दिनांक 25/09/2019
    से 20/02/2020 तक अस्पताल में भर्ती था जिसके कारण मै जी. एस.टी .पोर्टल पर रद्दीकरण आदेश नहीं देख पाया मैंने दिनांक 21/02/2020 जी.एस.टी .पोर्टल पर रद्द किए गए पंजीकरण के निरस्तीकरण के लिए आवेदन किया (Revocation Of Registration) दिनांक 21/02/2020 ARN No.AA0902200757647. निरस्तीकरण के आवेदन को कर अधिकारी द्वारा अस्वीकृत कर दिया गया है.
    इसमें आपके उत्तर ARN AA0902200757647 दिनांक 21/02/2020 को दर्ज किए गए उत्तर का संदर्भ है। उत्तर की जांच की गई है और निम्नलिखित कारणों से इसे संतोषजनक नहीं पाया गया है इसलिए आपका आवेदन अधिनियम के प्रावधानों के अनुसार खारिज कर दिया जाता है।
    श्रीहरि त्रिपाठी सहायक आयुक्त कानपुर सेक्टर -21
    1 रद्द करने के निरस्तीकरण का कारण – अन्य (कृपया निर्दिष्ट करें) – निरसन आवेदन बहुत देर हो चुकी है
    मेरे द्वारा प्रस्तुत रद्द करने के निरस्तीकरण के आवेदन को कर प्राधिकरण द्वारा अस्वीकार कर दिया गया है। अब मैं क्या कर सकता हूँ?
    मेरे द्वारा जीएसटी पोर्टल पर निरस्तीकरण के इस एप्लिकेशन को भरने के लिए विंडो पुनः सक्रिय करें.
    39वीं जीएसटी परिषद की बैठक
    निरस्तीकरण का संशोधन
    ऐसे करदाता जिन्होंने 14 मार्च 2020 तक अपना जीएसटी पंजीकरण रद्द कर दिया है, पंजीकरण रद्द करने के लिए आवेदन दाखिल कर सकते हैं। इस एप्लिकेशन को भरने के लिए विंडो 30 जून 2020 तक उपलब्ध है। विस्तार उन लोगों की सुविधा के लिए एक समय माप है जो व्यवसाय का संचालन जारी रखना चाहते हैं।

    आदरणीय महोदय, मैं बहुत दुखी हूँ कृपया मेरी तत्काल मदद करें. मैं आदेश के खिलाफ ऑफ़लाइन अपील दायर नहीं करना चाहता हूँ क्योंकि अधिवक्ता की मांग बहुत अधिक है .

  2. Anjali Mittal says:

    Hi Uma !!

    Very well written. Revocation process and the relevant provisions are explained at one place.

    I would like to know, whether any notification or order in respect of recommendation made in 39th Council meeting has been issued or it is still awaited? Since we are in mid of May 2020 and timeline for application of revocation is only said to be extended to 30.06.2020, what should we do if not notified in official gazette?

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