Revocation of Cancellation of GST Registration

A registered person can apply for the revocation of cancellation in Form GST REG-21 if their registration has been cancelled suo motu by the proper officer. Revocation is the annulment or cancellation of a statement or agreement. In the context of contracts, revocation may refer to the offer or the cancellation of an offer. Suo moto cancellation of GST by Tax Officials can happen due to a number of varied circumstances, and this is governed by the provisions of section 29 of the GST Act. Some of these circumstances can be listed as:

1. Discontinuation or closure of business,
2. Change in Constitution leading to change in PAN,
3. Transfer of Business on account of amalgamation, merger/demerger, sale, lease, or otherwise disposed of, or such other reason.
4. Death of the sole proprietor,
5. The person does not need to be registered under GST as per the provisions of GST from that point onwards.
6. Registration was obtained by the person by means of fraud, wilful misstatement, or any suppression of essential facts.
7. A person who has taken voluntary registration under section 25(3) has not commenced business within 6 months from such date of registration.
8. There was a failure to furnish an Application for Enrolment within 3 months from the appointed day or such extended period specified.

But it is to be noted that any liabilities that have arisen before the date of the Suo Motto cancellation have to be paid by the taxpayer, and this shall not be terminated on cancellation of such registration. On the cancellation of such registration, Suo Moto by the Tax Officials of the GST, the taxpayer or the person can apply for revocation of such registration:

Time Limit for Revocation

A registered taxable person whose registration was cancelled Suo Moto by the tax officer can apply for revocation of the same within 30 days from the date of service for cancellation of GST registration. The application for revocation or cancellation of GST can only be made if the same was made by Suo Moto by the proper officer on his motion. And the same cannot be used if the registration was cancelled voluntarily by a registered taxpayer.

Application for Revocation

A person whose registration for GST was cancelled suo moto by the proper officer shall apply Form GST REG-21, either directly or through a facilitation centre notified by the Commissioner of GST.

Procedure for Online GST Revocation

A registered taxpayer whose registration was Suo Moto cancelled by the proper officer shall follow the following steps for revocation of such GST registration online through the online portal of GST:

• Access the GST Portal http://www.gst.gov.in by entering the username and password.
• Under the GST dashboard, select services.
• Now select ‘registration’ and then select ‘application for revocation of cancelled registration option’.
• In the select box, now enter the reason for the GST Registration Cancellation revocation.
• Attach the required supporting documents, select the verification check box, and select the name of the person who is authorized to sign, along with the name of the place filed.

The final step would be to apply for revocation using the DSC (Digital Signature Certificate) of the authorized person or EVC.

Processing of the Application:

Suppose the proper officer is satisfied that the reason which the person has furnished for revocation of the cancelled registration is appropriate. In that case, the officer shall revoke the cancellation of such registration. And the period for revocation of such cancellation will be within 30 days from the date of application, and such order revoking the cancellation of registration in Form GST REG-22 by such officer to the person.

Rejection of Application:

In case the proper officer is not satisfied with the reason stated by the person in the application for revoking such GST registration, then the officer shall issue Form GST REG-23. On the receipt of the same, the applicant is required to furnish a proper reply in Form GST REG-24 within seven working days starting from the date of service of notice. On the receipt of the same, the officer shall be required to pass a suitable order in Form GST REG-05 within 30 days from the date of receipt of a reply from the claimant.

Applicants who are Ineligible to make such an Application

The following are the applicants or persons who are ineligible to make an application for such revocation of cancelled GST registration, namely;

1. UIN Holders, i.e., UN Bodies, Embassies, or such other Notified Persons,
2. GST Practitioners,
3. Legal Heir of the taxpayer,
4. A taxpayer who cancelled the registration voluntarily.

Suo Moto Cancellation of GST registration by the proper officer or the GST Authorities through the Act has given the person or assessee the right to make an application to the authority so that the cancellation will be revoked and the registration will be reinstated. But it is to be noted that this decision shall be on the sole basis of the discretion made by the Proper Officer on the basis of the reasons stated by the person along with any supporting documents furnished.