Revocation of Cancellation of GST Registration

Last Updated on July 25, 2024 by Kanakkupillai

A registered person can submit an application for revocation of cancellation, in form GST REG-21, if his registration has been cancelled suo moto by the proper officer. Revocation is an annulment or cancellation of a statement or agreement. In the context of contracts, revocation may refer to the offer or canceling 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 thereon,
6. Registration was obtained by the person by means of fraud, wilful misstatement, or any suppression of important 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 which have arisen before the date of Suo moto 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 a period of 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 own motion. And the same cannot be used if the registration was cancelled voluntarily by a registered taxpayer.

Application for Revocation

Such a person whose registration for GST was cancelled Suo Moto by the proper officer shall file an application in 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 and then 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.

Now the final step would be to file the application for revocation with DSC (Digital Signature Certificate) of the person authorized to sign or EVC.

Processing of the Application:

If the proper officer is satisfied that the reason which has been furnished by the person, for revocation of the cancelled registration is appropriate, then the officer shall revoke 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 a period of 7 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 a period of 30 days from the date of receipt of a reply from the claimant.

Applicants who are Ineligible to make such an Application

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 its Act has given the person or assessed to make an application to the authority such that the cancellation will be revoked and the registration would be re-stated. 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.