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GST Revocation and Cancellation

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  • Overview
  • Reasons
  • Revocation
  • Time Limit
  • Filing of Application
  • Rejection
  • Disqualification
  • FAQs

What is GST Cancellation and Revocation

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.

 

What is the best Reason for Revocation of Cancellation GST?

Cancellation of GST registration can occur for various reasons including:

  • Turnover of a firm is falling below ₹20 lakhs
  • Voluntary cancellation by the taxpayer due to discontinuation of business or conversion of business by applying under Form GST REG-16
  • Cancellation by a tax officer if the business does not adhere to established parameters.

 

What is Revocation of GST Registration?

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

  • Contact address, including mobile number and email address.
  • Grounds for cancellation.
  • The desired date of cancellation.
  • Details of the value and tax payable on various stock items, such as inputs, semi-finished goods, complete goods, capital goods, and machinery.
  • Details of the entity's registration if the current unit has merged, amalgamated, or transferred.
  • Details of the latest return filed by the taxpayer, along with the ARN (Application Reference Number) of that particular return.

 

What is Time Limit for Revocation of GST Registration?

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.

 

What is Application for Revocation of 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.

Processing of Application

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.

Online Application Procedure for Revocation

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. 

 

What to do after Rejection of GST Application?

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.

 

What is Unqualified Applicants?

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.

 

FAQs

Cancellation of GST means if due to any reason GST no. is cancelled for any firm.

Yes, under certain conditions, it is very much possible to cancel the GST number.

Cancellation of GST registration can occur for various reasons, including: Turnover of a firm is falling below ₹20 lakhs. Voluntary cancellation by the taxpayer due to discontinuation of business or conversion of business by applying under Form GST REG-16 Cancellation by a tax officer if the business does not adhere to established parameters.

Revocation of Cancellation means that the order to cancel GST Registration is reversed, and registration is again valid.

Revocation of GST cancellation is applicable only if a tax officer has cancelled GST. It is not applicable if GST Number is voluntarily cancelled.

No GST Registration cannot be done without filing returns and clearing dues if any.

If the GST registration is cancelled by a tax officer, you can file for the reversal of cancellation by filing an application within 30 days from the date of cancellation. The application must be submitted along with the necessary documents to the tax officer.
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