In brief:-

Recently, many taxpayers were facing problems since the time of Revocation against cancellation of GST Registration had been expired. In this regard, the GST council provided one-time opportunity by providing an extension to file revocation applications in the 40th council meeting on 12.06.2019. Now, CBIC issues order about this matter.

In detail:-

Legal Background

The cancellation of GST is governed by Sec 29 of CGST Act, in which GST registration cancellation can be done by GST officer Suo motto or in response to an application filed by either GST registered persons or his legal Heir, only in case of death of the Registered person. But we are here to talk about the revocation of GST registration cancelled by the GST officer. Now, the question arises, when can a GST officer cancel the GST registration? The conditions prescribed under subsection (2) of Section 29 of the said act which is
as follows: –

– The registered taxable person has contravened such provisions of the Act or the rules;

– A person paying tax under Composition Scheme has not furnished returns for three consecutive tax periods;

– Any registered person who has not furnished returns for a continuous period of six months;

– Any person who has taken voluntary registration and has not commenced business within six months from the date of registration;

– Where registration has been obtained by means of fraud, willful misstatement or suppression of facts.

Further, Rule 21 of the CGST Rules, 2017 also provides cases for cancellation of Registration and includes the following: –

– Does not conduct any business from the declared place of business, or

– Issues invoice or bill without the supply of goods or services in violation of the provisions of Act or Rules,

– Violates the provisions of section 171 of the Act or the rules which deal with anti-profiteering provisions

– Violates the provisions of Rule 10A, which deals with furnishing details of bank accounts within 45 days after certificate of registration is made available.

When GST officer has reasons to believe that the registration of a person is liable to be cancelled, he suomotto issues a show-cause notice under Section 169 of the CGST Act and after giving a reasonable opportunity can cancel the registration of the person from a date to be determined by him.Registered person can apply for revocation within 30 days from the date of service of cancellation order under sec 30 of the CGST Act.

Practical Aspect: –

In recent times, many registrations were cancelled due to non-filing of GST Return. Filing of GST return is mandatory and a tax payer is required to file nil returns also; else daily penalties will be charged. Once a cancellation order is passed by the officer, that person will not able to take input or collect GST from any person.However, this will not affect that liability to Tax or other due up to the date of cancellation. Which included an equivalent amount of input of capital goods as well as stock or tax payable on such stock or capital goods, whichever is higher, which could be a huge tax liability. However, Sec 30 provides a remedy against cancellation order but it is for a very short period of time. The taxpayer can apply for revocation within 30 days from the date of cancellation. If a taxpayer fails to do so, then he is required to pay all the tax, late fee on pending returns, and interest up to the date of Cancellation.

And, the majority of Taxpayers could not apply for revocation of cancellation within the specified time period of thirty days from date of service of the cancellation order, whereof certain difficulties had arisen in giving effects to the provision of subsection (1) of Sec 30 of the said Act.

Since government objective is to keep most of the taxpayers in GST chain, it provides many opportunities for revocation by giving an extension. And, once again, the GST council has decided in its 40th meeting to give another onetime opportunity to revoke cancelled registration to facilitate taxpayers who could not file their revocation application. An opportunity is being provided for filing of application of revocation of cancellation of registration upto 30.09.2020 in all cases where registration has been cancelled till 12.06.2020. And further, CBIC provides clarification in this regard in the removal of difficulty order No 01/2020 dated 25.06.2020 by exercising of the powers conferred by section 172 of the CGST Act

“This Order may be called the Central Goods and Services Tax (Removal of Difficulties) Order, 2020.-

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.”

Further, it is the officer’s discretionary power to either revoke cancellation of registration, or reject the application for revocation for good and sufficient reasons. However, the officer shall not reject the applications of revocation of cancellation of registration without giving a show cause notice and without giving opportunity of being heard.

If you are looking for the revocation of cancelled registration, then this is the right to time t0 do so. Recently, the Govt. announced that the total amount of late fee payable under section 47 of the said act will be waived, which is in excess of an amount of two hundred and fifty rupees for the registered person who failed to furnish the returns in GSTR -3B for the months of July.2017 to Jan 2020 but return to be filed between the period from 01/07/2020 to 30/09/2020.

Steps of Revocation:-

1. Access the GST Portal at

2. In order to enter into the account, enter the username and appropriate password.

3. On the GST Dashboard, select services. Under services, select registration and further under registration, select application for revocation of cancelled registration option.

4. Select the option of applying for revocation of cancelled registration. In the selected box, enter the reason for revocation of GST registration cancellation. Further, you need to choose the appropriate file to be attached for any supporting documents.And, you need to select the verification checkbox and select name of the authorized signatory and fill up the box.

5. The final step would be to select “SUBMIT WITH DSC OR SUBMIT WITH EVC” box.

This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice.You Should not act upon the information contained in this publication without obtaining specific professional advice .

Author Bio

Qualification: CA in Practice
Company: N/A
Location: Rajasthan, IN
Member Since: 01 Jul 2019 | Total Posts: 2
Ketan Singh is a qualified Chartered Accountant and passionately working in GST and information technologies. View Full Profile

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April 2021