Revocation of GST registration Cancellation by 30th September 2020

We have seen many registrations being cancelled due to returns not being filed beyond 6 months by the tax payer. Cancellation of GST registration Suo motu by officer as per Section 29(2) of CGST Act 2017 are

1. A person paying tax under Composition levy has not furnished returns for three consecutive months

2. Any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of six months

In case of such cancellation, the tax payer shall file application for revocation with in 30 days in Form GSTREG-21 however if the time limit for application for revocation is expired then the process for revocation is long. The tax payer has to file the pending returns by paying tax, interest and late fee due and then apply for appeal with Appellate Authority as per section 107(1). Authority if found satisfied may approve the application else reject giving reasons.

In 39th GST council meeting it was announced that where registration has been cancelled till 14-3-2020, application for revocation of cancellation of registration can be filed upto 30-06-2020 through normal process however we did not see the portal supporting this announcement.

Further CBIC vide order 01/2020 dated 25.06.2020 extended the date and clarified that where cancellation order by proper officer was passed up to 12th June 2020, the registered person may submit an application for revocation by 31st Aug 2020

The extract of relevant para is reproduced below

For the removal of difficulties, it is hereby clarified that for the purpose of calculating the period of thirty days for filing application for revocation of cancellation of registration under sub-section (1) of section 30 of the Act for those registered persons who were served notice under clause (b) or clause (c) of sub-section (2) of section 29 in the manner as provided in clause (c) or clause (d) of sub-section (1) of section 169 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) 31 st day of August, 2020.”

This means the time limit is later of following dates

1. 30 days from date of service of said cancellation order if it was passed upto 12th June 2020

2. 30 days from extended time limit 31st August 2020 which is 30th of September 2020.

Further CBIC has issued notification No. 57/2020 dated 30.06.2020 reducing or waving of late fee as given below

> If GST liability is Nil, and the GSTR-3B return is filed between 1st July, 2020 and 30th September, 2020, then the amount of late fees stands waived.

> If the GST liability is not Nil, and the GSTR-3B return is filed between 1st July, 2020 and 30th September, 2020, then the amount of late fees stand waived in excess of Rs.250 under the CGST Act.

Now the tax payers who’s registration cancelled due to not filing of returns to file the returns with zero late fee in case of Nil returns or pay maximum Rs. 500 per month as late fee in case there exists GST liability. This is golden opportunity to file all the pending returns with late fee waiver/reduction and apply for revocation by 30th September 2020.

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4 Comments

  1. Saravanan MP says:

    My gst was canceled on nov 2019 the gst till nov 2019 was cleared
    I have revoked the gst on oct 2020

    Now I have pay penalties for each month 10000
    Till current month even if it’s nil return due to cancellation

  2. subburayalu says:

    If applied for revocation of GST RC and get activated, Input tax credit availble in GSTR-2A is eligible to utilize or not for the financial year 2017-18 and 2018-19.

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