Share this link via
Or copy link
Share this link via
Or copy link
Ever since it was rolled out, GST, or Goods and Services Tax, has been a hot topic of discussion in India, especially in the business community, as it has significantly impacted the way businesses operate and pay taxes. Understanding the procedures for GST registration, return filing, tax challan, e-way bills, and other related forms can be challenging. In cases where a business has mistakenly registered for GST and wishes for GST Cancellation of the same, it is possible to do so under certain conditions, primarily when the annual turnover of the company falls below ₹20 lakhs, including total sales and unregistered purchases.
GST Cancellation signifies that the taxpayer will no longer be considered a GST-registered entity and will not be required to pay or collect GST. However, it is essential to note that for some specific businesses, GST registration is mandatory. If the registration is canceled while the business continues to operate, it can lead to GST offenses and significant penalties.
In this article, we will look into the process of GST Cancellation, GST Revocation and outlining the relevant forms and procedures as per the CGST Rules, 2017, Rule 23.
Cancellation of GST registration can occur for various reasons including:
When GST Registration has been cancelled by authorities on certain grounds, it can be revoked by applying for revocation. When applying for the revocation of GST registration, the applicant must provide the following mandatory information in Form GST REG-21
Any registered taxable person can apply for the revocation of GST License within 30 days of receiving the order of GST Cancellation. It's crucial to note that the option for revocation is only available in cases where the registration was canceled by an officer. The option of revocation is not applicable when a taxpayer chooses to voluntarily cancel their GST registration.
To initiate the revocation process, the registered person must submit an application via Form GST REG-21. This can be done directly or through a facilitation center approved by the Commissioner. In case the concerned officer has cancelled the registration because of non-filing of returns. Then the reversal application in GST REG-21 can be filed only after the pending returns are duly filed along with interest and penalty.
The cancellation of the taxpayer's registration shall be revoked if the concerned officer is satisfied with the justification provided by the taxpayer. The officer has 30 days time from the date of filing of application of revocation, to revoke the registration cancellation in Form GST REG-22.
Below are the steps for revoking GST Cancellation online:
Visit the GST portal.
Log in with your username and password.
Enter the required information, including the reason for revocation, and attach the necessary documents.
Select the authorized signatory and filing location.
Save the application form.
Submit the form using the Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
After successful submission, an Application Reference Number (ARN) shall be generated.
The tax official will review the application and, if he/she is satisfied with it, the application shall be approved.
Once the application is approved, the GSTIN status of the applicant will change from Inactive to Active from the effective date of cancellation.
In case of rejection of the application, the GSTIN status shall remain inactive.
Offline Application Procedure for Revocation
If any applicant wants to file an application regarding revocation of their GST Cancellation, they can contact Apka Tax. We at Apka Tax have a dedicated team to assist you in such matters. We shall do all the paperwork and file the documents with the concerned authorities and get your cancellation order revoked at the earliest.
If the concerned GST officer is not satisfied with the revocation application, they will issue a show cause notice in Form GST REG-23. The applicant has seven working days from the notice's service date to submit a suitable response in Form GST REG-24. After receiving the applicant's response, the officer, is satisfied with the response, must issue a suitable order in Form GST REG-22 within 30 days.
Certain individuals or entities, such as those holding a UIN, GST Practitioners, or those who voluntarily requested the cancellation of their registration or had it canceled by their legal heir, cannot apply for the revocation of a canceled GST registration.