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Restoring Cancelled GST Registration: A Comprehensive Guide

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Restoring a cancelled GST (Goods and Services Tax) registration can be complex. When the GST authorities decide to cancel a registration, there is an opportunity for restoration by submitting Form GST REG-21. This article provides a detailed overview of the restoration process.

Form GST REG-21

To restore a cancelled GST registration, taxpayers must submit Form GST REG-21 to the GST authorities within one month of receiving the cancellation notice. However, if the registration is cancelled due to pending returns, the authorities will initiate the restoration process only after the pending returns are filed, and any outstanding dues are paid.

Reasons for GST registration cancellation

Several reasons may lead to the cancellation of a GST registration, including:

I) Voluntary cancellation of GST registration: Taxpayers may choose to cancel their GST registration voluntarily for various reasons.

ii) Cancellation due to the taxpayer’s death: In the unfortunate event of a taxpayer’s death, the GST registration may be cancelled, and the nominee or legal representative must file the cancellation certificate.

iii) Cancellation by tax authorities for specific reasons: GST registration can be cancelled by the tax authorities if discrepancies or errors are found in the filed returns, non-compliance with tax regulations, or failure to pay pending returns.

Steps for restoration of cancelled GST registration

The restoration process for a cancelled GST registration involves the following steps:

i) Login to the GST portal using the user ID and password.

ii) Navigate to the restoration section for cancelled GST registration.

iii) Provide the reasons for the GST registration cancellation, as expressed by the GST authorities.

iv) File Form GST REG-21 to initiate the restoration process.

Consequences of not cancelling GST registration

If the Form GST REG-21 submitted by the taxpayer does not satisfy the concerned authorities, they will respond by filing a reply in the form of GST REG-23. Upon receiving the reply, the taxpayer must respond within seven days by filing GST REG-21. The tax authorities will then provide their final reply in the form of GST REG-05.

The time frame for filing restoration of cancelled GST registration

Once taxpayers receive the cancellation notice, they must file Form GST REG-21 within 30 days. Sometimes, this time frame may be extended up to 90 days.

Conclusion

Restoring a cancelled GST registration is an essential opportunity for taxpayers to rectify errors. By filing Form GST REG-21, taxpayers can initiate the restoration process and regain their GST registration. This process reflects a consideration given to taxpayers to ensure compliance and rectify any mistakes promptly.

FAQs

Can I restore my GST registration if it was cancelled voluntarily?

Yes, you can restore your GST registration even if it was cancelled voluntarily. You can initiate the restoration process by filing Form GST REG-21 within the specified time frame.

What happens if I don’t restore my cancelled GST registration?

If you don’t restore your cancelled GST registration within the specified time frame, you may face legal consequences and difficulties conducting business operations.

Are there any penalties for not filing pending returns before restoring a cancelled GST registration?

Yes, if your GST registration was cancelled due to pending returns, you must file the pending returns and pay any outstanding dues before initiating the restoration process. Failure to do so may result in penalties or further complications.

Can I extend the time frame for filing Form GST REG-21?

Sometimes, the time frame for filing Form GST REG-21 may be extended up to 90 days from receiving the cancellation notice. However, submitting the form within the initial 30-day period is advisable to ensure a smooth restoration process.

What should I do if the authorities do not accept my Form GST REG-21?

A5. If the authorities do not accept your Form GST REG-21, they will provide a reply in the form of GST REG-23. You must respond within seven days by filing GST REG-21 again. The final reply from the tax authorities will be conveyed through GST REG-05.

G.Durghasree B.A.B.L (Hons)

G Durghasree B.A.B.L (Hons) is a registered trademark attorney with extensive experience as an Advocate for a period of 8 years. She possesses expertise in trademark law, including trademark filing and trademark hearings. Additionally, she is skilled in contract drafting and reviewing, providing legal advice and opinions, particularly in the areas of Company Law, Insolvency and Bankruptcy Code (IBC), and Goods and Service Tax Law (GST). Her experience encompasses both litigation and non-litigation aspects of these laws.