Introduction: – A taxpayer whose GST registration has been cancelled by the proper officer within the relevant provisions of CGST Act, 2017 (for example, non- filing of GST returns for a certain period of time) faces consequences in form of a total cessation of his/ her business activities as the taxpayer cannot make taxable supply, e-way bills and collect tax from the customers. As a result, all of the business activity comes to a total halt.
In such situations, the government has given facility to the taxpayer to file a revocation application before the proper officer and ask for restoration of his/ her GST registration by showing sufficient cause. The revocation application, if accepted by the officer, reinstates the GST registration of the taxpayer from the very same date from where the registration was cancelled by the officer.
This revocation of GST registration allows the taxpayer to file the pending returns and pay the due taxes. In this article, various time limits of the revocation procedure have been discussed in detail along with latest applicable changes in the said procedure.
It is important to note that Aadhar authentication of the authorized signatory/ proprietor/ partner/ director is mandatory before filing a revocation application in terms of Section 30 of the CGST Act, 2017.
It is important to note that where the cancellation has been done due to non- filing of returns, the taxpayer is required to file all the said returns along with payment of tax, interest & late fee before filing revocation application. Practically, the system itself does not allows one to file revocation application, if the returns are pending/ not filed.
Important time limits
Initially, the time limit for filing a revocation application was only 30 days from the date of service of cancellation order. But now, this limit has been increased from 30 days to 90 days from the date of service of cancellation order. The time limit has been increased w.e.f. 01-10-2023. So, the taxpayers now have more time to apply for revocation of cancelled GST registration. The form in which such application is to be filed at common GST portal is Form GST REG- 21.
The above time limit can also be extended by the Commissioner (on proving sufficient cause resulting in delay of filing application) for a further period of upto 180 days.
The officer, if satisfied with the reasons mentioned in the application, will revoke the cancelled GST registration within 30 days from the date of receipt of revocation application filed by the taxpayer by passing his order in Form GST REG- 22.
The officer may also issue a notice in Form GST REG- 23 as to why the registration of tax payer be revoked. In this scenario, the tax payer will get 7 days’ time to respond to this notice. Reply by the tax payer shall be filed in Form GST REG- 24. If the reply is found satisfactory by the proper officer, he/ she will accept the revocation application and reinstate the registration.
If the officer is not satisfied with the reply filed by the taxpayer, he may reject the application by issuing Form GST REG- 05. If this rejection order is issued, then the registration cannot be reinstated and stands permanently cancelled.
Now the question is what will happen if all the time limit for filing revocation application has lapsed?
What to do when the officer reinstates the GST registration back to normal?
GST law specifically mentions that if the above cancellation was due to non- filing of returns, all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said taxpayer within a period of thirty days from the date of order of revocation of cancellation of registration, even if the cancellation was retrospective.
Conclusion
The revocation of cancelled GST registration represents a second chance for taxpayers to rectify their compliance failures and continue their business activities without legal impediments. The extended time limits and detailed procedural guidelines offer a structured path towards reinstatement. However, the emphasis on prior compliance, including the filing of all pending returns and payment of associated dues, underscores the criticality of maintaining regular GST compliance to avoid the severe consequences of cancellation. This process, while offering relief, also serves as a reminder of the importance of adherence to the statutory requirements under the CGST Act, 2017.
Relevant portion of GST bare Act & rules is also mentioned for further clarifications.
Section 30 of the CGST Act, 2017. Revocation of cancellation of registration.-
(1) Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in such manner, within such time and subject to such conditions and restrictions, as may be prescribed.
(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application: Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under this Act.
Rule 23. Revocation of cancellation of registration. – (1) A registered person, whose registration is cancelled by the proper officer on his own motion, may [subject to the provisions of rule 10B] submit an application for revocation of cancellation of registration, in FORM GST REG-21, to such proper officer, [within a period of ninety days from the date of the service of the order of cancellation of registration] at the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended by the Commissioner or an officer authorized by him in this behalf, not below the rank of Additional Commissioner or Joint Commissioner, as the case may be, for a further period not exceeding one hundred and eighty days:
Provided further that no application for revocation shall be filed, if the registration has been cancelled for the failure of the registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns.
Provided also that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration.
Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration.
(2) (a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.
(b) The proper officer may, for reasons to be recorded in writing, under circumstances other than those specified in clause (a), by an order in FORM GST REG-05, reject the application for revocation of cancellation of registration and communicate the same to the applicant.
(3) The proper officer shall, before passing the order referred to in clause (b) of sub-rule (2), issue a notice in FORM GST REG-23 requiring the applicant to show cause as to why the application submitted for revocation under sub-rule (1) should not be rejected and the applicant shall furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24.
(4) Upon receipt of the information or clarification in FORM GST REG-24, the proper officer shall proceed to dispose of the application in the manner specified in sub-rule (2) within a period of thirty days from the date of the receipt of such information or clarification from the applicant.
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Author Bio
the above information was very relevant and thanks to CA Abhishek goel for these information