What are the Steps to Reactivate GST Cancellation?
There is a procedure to revive the cancellation of your goods and services tax registration if you are a taxpayer whose registration has been cancelled. We shall go into more detail about them in this blog.
Through the submission of Form GST REG-21, the taxpayer starts the goods and services tax cancellation procedure in India. This form must be submitted along with the necessary supporting documentation to the relevant authorities. The process can take up to six weeks to finish.
The Department of Revenue, Ministry of Finance, through the Central Board of Indirect Taxes & Customs, has published a notification extending the window for reactivating goods and services tax registration. The deadline to request such a revocation has been moved forward to 30 September 2021. This will be applicable to anyone who cancelled their registration between the first of March 2020 and the last day of August 2021.
After receiving your application, the relevant officer will review it and, if satisfied, restore your goods and services taxregistration. Then, depending on the situation, you will need to provide a bond or bank guarantee for the outstanding taxes. Your goods and services taxregistration will be enabled after this is finished.
An official has the right to reject an application for the cancellation of a goods and services taxregistration if they are not satisfied with it. In this situation, the officer will inform the applicant in writing of their choice and give the grounds for it. Following that, the applicant may file an appeal with the Tax Appeals Commission.
So far, it has become evident that a taxpayer whose registration has been cancelled by the appropriate authority may request to have that termination of their goods and services taxregistration reversed by submitting Form GST REG-21. This application must be submitted within 30 days of receiving the notice of goods and services tax registration cancellation.
The proper officer may terminate the registration as a result of the failure to file returns. Only when all pending returns have been filed, together with interest and penalties, may the GST REG-21 reversal application be made.
Time extension to apply for revocation
On 06 September 2021, the Central Board of Indirect Taxes & Customs released the Central Goods and Services Tax circular 158/14/2021-GST. It makes the 29th August 2021 Central Goods and Services Tax Notification No. 34/2021’s applicability clear.
The Central Board of Indirect Taxes & Customshas temporarily extended the deadline for applying for revocation or cancellation of goods and services tax registration until 30 September 2021.
Many taxpayers questioned whether they qualified for this rebate. In light of this, the Central Board of Indirect Taxes & Customs released the goods and services tax circular to provide clarification. It stated that the relief was offered regardless of whether the revocation application was accepted, denied, or under processing, and that the appeal authority, among other things, was included in the following table:
|S.No.||Application for revocation of cancellation of Goods and services tax registration status||Taxpayer’s expected actions|
|1||Still awaiting filing by the taxpayer.||File application on or before 30 September 2021.|
|2||Application submitted but pending with officer.||No action is necessary from the taxpayer. The application shall be processed by the officer taking into account the extended deadlines.|
|3||Application submitted; however the officer rejected it. The taxpayer has not appealed the decision to reject him or her.||Can submit a new application by 30 September or021, or earlier.|
|4||An appeal has been filed and is pending with the appellate authorities against the rejection of the revocation application.||No action is necessary from the taxpayer. Taking into account the extended deadline, the appellate authority must handle the appeal.|
|5||The officer denied the application, and the authority ruled against the taxpayer in the appeal.||The taxpayer must submit a new application by 30 September 2021, or earlier.|
With effect from 1 January 2021, a new proviso was added to Section 30 of the Central Goods and Services Tax Act, allowing an extension in the deadline to request for revocation if granted by the Additional/Joint Commissioner or the Commissioner for 30 days each.
Because of this provision, many taxpayers have wondered whether they can request additional extensions of 30 or 60 days after 30 September 2021, depending on the permission. This was clarified by the Central Board of Indirect Taxes & Customs:
|Sl Nos.||Situations||Last date for revocation application|
|1||If the 30-day window for submitting an application for revocation is between 1 March and 31 December 2020||30 September 2021|
|2||If the 30-day window has not yet expired as of 1 January2021, or if the registration for the goods and services tax is cancelled on or after that date,|
|The 90 days’ time period has elapsed by 31 August 2021||30 September 2021|
|60 days’ time period has elapsed by 31 August 2021||30 October 2021
(If the Commissioner approves after 30 September 2021)
|30 days’ time period has elapsed by 31 August 2021||30 October 2021
(If the Joint/Additional Commissioner approves after 30 September 2021)or29 November 2021
(If the Commissioner approves after 30 October 2021)
Form GST REG-23: Notice of Revocation Application Cancellation
The Form GST REG-21 revocation application will be verified by the relevant authorities.
Let’s say the responsible officer is not happy with the request for revocation. In that situation, he will write the taxpayer a show-cause notice on Form GST REG-23 outlining his reasons for believing that the refusal application should be denied. The taxpayer will be questioned about the merits of the denial application he submitted.
The taxpayer is given the opportunity to offer arguments against keeping the goods and services tax registration active.
Within seven working days of the notice’s due date, the assesse who got notice on Form GST REG-23 must answer on Form GST REG-24.
If the relevant official is pleased with the revocation application, he will write down the reason in this situation. Within 30 days of receiving a response on Form GST REG-21, he would also issue the order for the cancellation of the goods and services tax registration on Form GST REG-22.
Giving a response to a show-cause notice obtained in Form GST REG-23 using GST REG-24
A reply in Form GST REG-24 must be submitted by an assesse in response to a notice in Form GST REG-23 within seven working days after the date of service of the notice in Form GST REG-23.
Form REG-24 contains the below information:
Date of the notice and reference number
A reference number and the application’s due date
Reasons based on which the taxpayer is demanding revocation
Documents to be attached
The tax officer will verify the reply received on Form GST REG-24.
If satisfied, he will, within 30 days of receiving a response on Form GST REG-24, issue the order for revocation of goods and services tax registration on Form GST REG-22.
If unsatisfied,the tax officer may reject the application by issuing an order on Form GST REG-05 if he determines that the reasons given are unacceptable.
Note: If a goods and services tax registration certificate has been revoked by the goods and services tax authorities, the goods and services tax registration may be revoked.
Application for revocation
The registered person must submit an application on FORM GST REG-21 for the cancellation of their goods and services tax registration, either directly or through a facilitation centre that has been approved by the Commissioner.
Processing of application
If the appropriate officer is satisfied with the taxpayer’s justification for reversing the cancellation of registration, the officer will undo the cancellation.
The proper officer has 30 days from the application date to revoke the licence. The proper officer must sign an order onFORM GST REG-22 reversing the cancellation of registration.
Rejection of application
A notification in FORM GST REG-23 would be issued by a goods and services tax officer if the officer is not satisfied with the revocation application. The applicant must provide a sufficient response on FORM GST REG-24 within 7 working days after receiving the notice after it has been served on them. After receiving an appropriate response from the applicant, the officer must pass a suitable order on FORM GST REG-05 within 30 days of the date on which they received the applicant’s response.
The applicants who are unable to request the revocation of a cancelled registration are unique identity number holders (i.e., UN Bodies, Embassies, and other Notified Persons), goods and services tax practitioners, and cases where the registration was cancelled at the taxpayer’s or legal heir’s request.
Online application procedure for revocation of cancellation
The methods for revoking or cancelling a goods and services tax registration online are as follows for taxpayers:
Visit goods and services taxportal
Step 1: Taxpayers must first go to the Goods and Services Tax portal to revoke or cancel their goods and services tax registration.
Login into portal
Step 2: In order to access the username and password screen, click the “Login” button.
Step 3: In the required section, enter the right “Username” and “Password” information along with the captcha, and then click “login.”
Application for revocation
Step 4: On the home page, under the services tab, you must click the Revocation of Cancellation of goods and services tax registration link.
Step 5: When you click the link, the portal moves to the next screen, where you must fill out the “Reason for Revocation of Cancellation” form with your reason for cancelling your registration.
Step 6: After that, you must select a file to attach using the “Choose File” option.
Step 7: Select the checkbox for verification now.
Step 8: In the Name of Authorized Signatory drop-down list, choose the authorized signatory’s name.
Step 9: The location of the application’s filing must be entered in the “place” field.
Step 10: The application form can also be saved by using the “save” button so that you can access it later.
Step 11: Click the “Submit with digital signature certificate”or “Submit with electronic verification code” button.
Step 12: Use your digital signature certificate or the electronic verification code option to sign the form. You will be given a one-time password when you choose any of the options listed hereunder.
Using digital signature certificateoption
Step 13: If a digital signature certificate is being used, the taxpayer must first choose the registered digital signature certificate from the emSigner pop-up screen before continuing as necessary.
Using electronic verification codeoption
Step 14: After entering the received one-time password, press the “Validate OTP” button.
Step 15: The system will create the application reference number and display a confirmation message after successfully receiving the application for cancellation of registration.
Step 16: Additionally, the goods and services taxportal will send a confirmation message to the cell phone number and e-mail address you have on file.
Step 17: The appropriate tax official will assess the application using this procedure and make a decision in accordance with it.
Approval by the tax official
Step 18: The appropriate officer may reverse the cancellation of the goods and services tax registration after receiving the essential information and being satisfied with it.
Step 19: When a tax authority approves a request, the system generates an approval order and notifies the applicant—the taxpayer’s primary authorized signatory—by e-mail and short messaging service about the permission.
Step 20: After the Application for Revocation of Cancelled Registration is approved, the taxpayer’s GSTIN Status will change from Inactive to Active as of the cancellation effective date.
Rejection by the tax official
Step 21: The rejection order is produced when the tax official denies a request to reinstate a cancelled registration.
Step 22: The goods and services tax portal will continue to display the GSTIN status as “Inactive” and the taxpayer will receive notifications from the Primary Authorized Signatory through short messaging service and e-mail informing them that their application has been denied.
Step 24: On the taxpayer’s dashboard, they can see the Rejection Order receipt.
Offline application procedure for revocation of cancellation
The processes listed hereunder can be used by the registered taxpayer to make a request for the cancellation or revocation of registration:
Step 1: If a registered taxpayer’s registration has been revoked or cancelled suo motu by the appropriate tax official, he or she may submit the FORM GST REG-21 application for the revocation or cancellation of goods and services tax registration directly or through a facilitation centre informed by the Commissioner.
Note: You can download this GST REG-21 formfrom the goods and services tax portal. (Scroll below for reference.)
Step 2: The application must be submitted at the Common Portal within 30 days after the day the cancellation order was served.
Step 3: In accordance with the Act, the authorized officer is required to reverse the cancellation of the registration. After receiving the application, the officer has 30 days to respond using the GST REG-22. The officer shall put all the information regarding the cancellation or revocation of registration in writing.
Step 4: The proper authority must make a decision within 30 days of receiving the applicant’s clarification on GST REG-24.
Step 5: Before rejecting a revocation application, a concerned goods and services tax officer must issue a notification on FORM GST REG-23 if the officer is unsatisfied with the application. Within seven working days of the day the notice was served, the applicant must provide an acceptable response on FORM GST REG-24. Within 30 days of the date they received a response from the applicant, the responsible officer should, upon receiving an appropriate response, issue a suitable order in FORM GST REG-05.
If your goods and services tax registration has previously expired, you might renew it by submitting a new application. You must submit the same data and paperwork as when you apply for a new registration during process. Your registration will be reinstated as soon as your application is accepted, and you can resume operating normally. Based on our discussion so far, we anticipate that this blog will be helpful to people who are interested in reactivating their goods and serv