Goods and Services Tax (GST) registration is crucial for businesses in India that meet specific turnover thresholds or engage in interstate supplies. However, in some cases, GST registrations may get cancelled—either voluntarily by the taxpayer or Suo motu by the tax officer due to non-compliance. If more than two years have passed since the cancellation of GST registration, reactivation becomes more critical and complex, but not impossible.
This blog will explore the guide to reactivating a cancelled GST registration after two years, outlining the eligibility criteria, procedural steps, legal remedies, and best practices to ensure smooth compliance.
Understanding GST Registration Cancellation
A GST registration may be cancelled due to various reasons, including: –
- Non-filing of GST returns for six consecutive months (in the case of monthly filers).
- Voluntary cancellation due to business closure or turnover falling below the threshold.
- Non-compliance with GST laws, such as not conducting any business from the registered premises.
- Issuance of invoices without actual supply of goods or services.
Once cancelled, the GSTIN (Goods and Services Tax Identification Number) becomes inactive, and the taxpayer cannot legally collect GST or claim input tax credit (ITC).
Is Reactivation of GST After 2 Years Possible?
Yes, but not through a simple revocation request. Revocation of cancellation is allowed only within 30 days (or extended period, if permitted) from the date of service of cancellation order under Rule 23 of the CGST Rules. After 2 years, this window is long closed. Therefore, the only viable option is to apply for fresh registration or approach the jurisdictional GST officer or the High Court under certain circumstances.
Options for Reactivating a Cancelled GST Registration After 2 Years
Option 1: – Apply for Fresh GST Registration
If your business is still in operation and meets the prescribed threshold criteria for GST registration, the simplest and easiest option is to apply afresh on the GST portal…!
Steps to Apply for Fresh GST Registration:
- Visit the GST Portal: Go to www.gst.gov.in and navigate to Services > Registration > New Registration.
- Provide Basic Details:
- Legal name of the business. (as per PAN).
- PAN number.
- Email and mobile number for OTP verification.
- Receive Temporary Reference Number (TRN):
- Complete OTP verification.
- Note down the TRN for future reference.
- Fill in the Application (Part B):
- Business details: Trade name, constitution (e.g., sole proprietor, partnership, company).
- Principal and additional place(s) of business.
- Bank account details.
- Details of goods and services supplied (HSN/SAC codes).
- Upload supporting documents: PAN, Aadhaar, proof of business address, bank statement, photo, etc.
- Aadhaar Authentication:
- If opted for, authentication is done via OTP-based verification linked to Aadhaar.
- Verification and Approval:
- Upon submission, the application is either auto-approved by the authorities (in case of successful Aadhaar authentication) or taken up for officer scrutiny process.
- If scrutinised, the officer may issue queries or notices (Form GST REG-03), which must be responded to in time.
- Certificate of Registration:
- Once approved, Form GST REG-06 is issued with the new GSTIN.
Note: You cannot reactivate your old GSTIN after such a long lapse. A new GSTIN will be issued.
Option 2: – Legal Remedy – Appeal or Writ Petition
In certain cases where the cancellation was Suo motu and the taxpayer was unaware or could not respond within time due to valid reasons, approaching the Appellate Authority or even the High Court under Article 226 of the Constitution is an option.
a) Appeal to Appellate Authority
- File Form GST APL-01 within 3 months from the date of order (extendable by 1 more month with condonation).
- In case more than 2 years have lapsed, this route may not be effective unless justified with strong reasoning and court intervention.
b) Writ Petition
Several High Courts have, in recent years, allowed revocation even beyond prescribed time limits, especially in cases of genuine hardship, technical glitches, or administrative delay.
For example:
- Madras High Court in Tvl. Suguna Cutpiece Centre v. Appellate Deputy Commissioner (ST) allowed restoration of cancelled GST registration even after lapse of the revocation period.
- Delhi High Court in Asean Aromatics v. Assistant Commissioner CGST directed authorities to allow filing of revocation where registration was cancelled without proper notice.
To engage a GST lawyer to file a writ petition seeking permission to restore or regain your old GSTIN, citing: –
- Business continuity.
- Payment of pending taxes.
- Willingness to comply henceforth.
However, this route is costly, time-consuming, and the outcome is not guaranteed…!
Documents Required for New GST Registration
If applying for fresh registration, keep the following documents ready:
- PAN card of the business, proprietor/partners/directors.
- Aadhaar card of authorised signatory.
- Photograph of the proprietor/partners/directors.
- Proof of principal place of business (such as a rent agreement, utility bill, or ownership deed).
- Bank account details. (cancelled cheque or bank statement).
- An authorisation letter or board resolution. (for companies/LLPs).
- List of goods and/or services provided. (with HSN/SAC codes).
Consequences of Operating Without GST Registration
If a business continues to operate without reactivating or re-registering under GST, it can face serious consequences:
- Penalty under Section 122 of the CGST Act: ₹10,000 or 100% of the tax due, whichever is higher.
- Denial of Input Tax Credit to buyers.
- Difficulty in availing financial services, e-invoicing, and supplier relationships.
- Legal action and blocking of PAN for future registrations.
Tips to Avoid Future Cancellations
- File all GST returns (GSTR-1, GSTR-3B, etc.) on time.
- Maintain updated records and documents on the portal.
- Respond to notices promptly.
- Update business details when required (such as a change in address, bank, or contact).
Conclusion
Reactivating a cancelled GST registration after 2 years is not a simple revocation process to go through. Since the statutory time limit for revocation lapses quickly, the practical options are limited to applying for fresh registration or seeking legal intervention. For most businesses, obtaining a new GST registration is the most feasible and efficient solution. However, if retaining the old GSTIN is crucial—for example, due to ongoing contracts, tenders or compliance history—legal recourse via High Court may be pursued.
To ensure your business remains GST-compliant, it’s crucial to monitor your filing obligations, respond to notices without delay, and seek professional help when needed. Proactive compliance will always be cheaper and safer than post-facto litigation or re-registration.
