The word “Revocation of Cancellation of Registration” infers process of restoring GST registration when it has been cancelled.
In this article readers will get deeper understanding on the provisions relating to cancellation of GST registration, its revocation and other relevant provisions made in this regards in the Goods and Services Tax Law.
The government has earlier provided waiver of late fees for delayed filing of GST Returns. Late fees for delayed filing has been reduced substantially. Taxpayers who were non-compliant/not filed the returns earlier has the golden opportunity to file returns with minimal late fees and GST registration if cancelled due to non-filing of return can be restored.
Relevant Provisions
| Section under CGST Act, 2017 | Summary |
| Section 29(2) | Cases for Cancellation of registration |
| Section 30(1) | Revocation of cancellation of registration |
| Section 169(1) | Manner of Service of Decision, Order, Notice etc. |
| Section 172 | Empowers government to make order/s on recommendations of the Council |
Removal of Difficulty order dated 25th June, 2020
The government has issued “Central Goods and Services Tax (Removal of Difficulties) Order, 2020” in exercise of powers conferred to it under section 172 of the CGST Act, 2017 which provides as below
- Those registered person who were served notice
- under section 29(2)(b) [a person paying tax under section 10 (Composite Tax payer) not furnished return for three consecutive period) | Click here to read all about composite taxpayers) or
- under Section 29(2)(c) [registered person not furnished returns for a continuous period of six months;
- In the manner provided in Section 169(1)(c) or 169(1)(d);
- and where cancellation order was passed up to 12th June, 2020,
- The later of following dates shall be considered for calculating the period of 30 days for filing application for revocation of cancellation of registration under section 30(1)
-
- Date of service of the said cancellation order; or
- 31st day of August, 2020.
Click here to Download Removal of Difficulty Order 01/2020 Dates 25th June, 2020
Under-standing of Relevant provisions in FAQ’s Mode
When a GST registration can be cancelled ?
- The GST Registration can be cancelled either on the motion of proper officer or
- an application filed by the registered person or by his legal heirs
What are the circumstances where registration can be cancelled ?
- Where the business has been discontinued
- transferred fully (for any reason including the death of the proprietor, amalgamated with other entity, demerged or otherwise disposed of)
- there is any change in the constitution of the business
- the taxable person (other than those voluntary registered though not mandatory liable to registered) are no longer liable to be registered under section 22 or section 24.
What are the cases when the registration granted to a person is liable to be cancelled ?
- does not conduct any business from the declared place of business; or
- issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder; or
- violates the provisions of section 171 (Anti-profiteering measure) of the Act or the rules made thereunder
- violates the provision of rule 10A (Furnishing of Bank Account Details)
When cancellation of registration can be revoked ?
Any registered person whose registration has been cancelled by the proper officer on his own motion may apply for revocation of cancellation or registration. (section 30(1))
It is important to mentioned here that benefits of extended time limit for revocation of cancellation of registration granted removal of difficulty order covers only cases where registration has been cancelled due to the reason for non filing of returns (as explained above)
What is the Time limit for revocation of cancellation of the registration ?
30 days from the date of service of the cancellation order.
What is the Manner of Service of Notice covered under this removal of difficulty Order ?
Clause (a) to (f) to sub-section (1) of the Section (169) contains manner of service of notice, however amongst these six clauses following mentioned are 2 clauses which are covered in the removal of difficulty orders, 2020;
“169(1)(c) by sending a communication to his e-mail address provided at the time of registration or as amended from time to time;”
169(1)(d) “by making it available on the common portal;”
When an order can be said to have been served when it has been sent via email or made available on the common portal ?
Notice shall be deemed to be served on the date when it is tendered or published . (Section 169(2))
Rejection of Revocation of cancellation of the registration ?
The proper officer has powers to revoke the cancellation of registration or registration or reject the application. The application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.
Is Revocation of cancellation of registration under The State GST Act / The UT GST Act valid under the Central GST Act, ?
Yes, The revocation of cancellation of registration the State GST Act or the UT GST Act shall be deemed to be revocation of cancellation of registration under under the Central GST Act
What to do when revocation application filed has been rejected ?
In view of the News/Updates flash at GST Portal; the restriction on filing revocation application, in case it was rejected, has been removed. Aggrieved taxpayers can file application for revocation of cancellation of registration once again.
Further, those taxpayer who have filed Appeal against rejection of the Revocation Application and the decision is still pending, they may also file the Revocation of Cancellation.
Taxpayer is required to login and navigate to Services> Registration> Application for Revocation to file the application for revocation.
Link: https://www.gst.gov.in/newsandupdates/read/390
Relevant Forms
| REG- 16 | Application for Cancellation of Registration |
| REG- 17 | Show Cause Notice for Cancellation of Registration |
| REG- 18 | Reply to the Show Cause Notice issued for cancellation for registration |
| REG- 19 | Order for Cancellation of Registration |
| REG- 20 | Order for dropping the proceedings for cancellation of registration |
| REG- 21 | Application for Revocation of Cancellation of Registration |
| REG- 22 | Order for revocation of cancellation of registration |
| REG- 23 | Show Cause Notice for rejection of application for revocation of cancellation of registration |
| REG- 24 | Reply to the notice for rejection of application for revocation of cancellation of registration |
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided. Neither Author nor Yes GST (collectively referred as we) assume no responsibility thereof. The user of the information agrees that the information is not a professional advice and is subject to change without notice. We shall not be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information in any circumstances.
Mr. Setia is a CA by Profession and expert in the field of Indirect Taxation Based in Delhi. Rich experience of over 5 year.