Revocation of cancellation of GST registration

The tax official may have cancelled a taxpayer’s GST registration by initiating suo moto proceedings. The aggrieved taxpayer can apply for revocation or restoration of such GST registration cancelled by visiting the GST portal.

Latest updates on revocation

26th October 2023
CGST notification no: 52/2023
Format of form REG-08- Order of Cancellation of Registration as TDS or TCS is modified.

4th August 2023
CGST notification no: 38/2023
The time limit for taxpayers to apply for the revocation of a cancelled GST registration is now 90 days from the date of the service of the order of cancellation of registration instead of 30 days with effect from 1st October 2023.

31st March 2023
CGST notification no: 03/2023
The department extended the time limit to apply for revocation of GST registrations cancelled on or before 31st December 2022 upto 30th June 2023. The reasons for cancellation should be due to the non-filing of tax returns. Also, only the taxpayers who couldn't apply for revocation within 30 days of the cancellation order can file it.

Checkout the section on ‘Time extension to apply for revocation’ for more details.

18th February 2023
49th GST Council meeting updates-
The Council recommend an amnesty scheme to help taxpayers whose GST registration has been cancelled due to the non-filing of GST returns. Under this amnesty scheme, the department would allow the taxpayers to file for the revocation of GST registration which couldn’t be filed within time earlier.
1st February 2022
Budget 2022 updates-
Section 29 of the CGST Act is amended for cancellation of GSTIN by officer:
1. If a composition taxable person fails to file an annual return for three months beyond the due date of 30th April of the following year, his registration can get cancelled. 
2. For any other regular taxpayer, registration will be cancelled if there is the default for consecutive tax periods as prescribed against earlier the six months consecutive default in return filing.

21st December 2021
From 1st January 2022, CBIC made the Aadhaar authentication mandatory to apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21.

29th August 2021
Taxpayers can get extended time up to 30th September 2021 to revoke cancelled GST registration if the last date for the same falls between 1st March 2020 and 31st August 2021. It applies if the GST registration is cancelled under Section 29(2) clause (b) or (c) of the CGST Act via CGST notification number 34/2021 dated 29th August 2021.

28th May 2021
Due date to file an application for revocation of cancellation of registration falling between 15th April 2021 up to 29th June 2021 is 30th June 2021. 
 

Form GST REG-21: Application for reversal of cancellation of GST registration

A taxpayer whose registration is cancelled by the proper officer can apply for reversal of such cancellation of GST registration by applying Form GST REG-21. This application should be filed within 30 days of receiving the notice for the cancellation of GST registration.

In case the proper officer has cancelled the registration because of the non-filing of returns. The reversal application in GST REG-21 can be filed only after pending returns are filed along with interest and penalty.

Follow the steps below to file GST REG-21:

Step 1: Log in to the GST portal and navigate to ‘Services’ > ‘Registration’ > ‘Application for revocation of GST registration cancellation.’

Step 2: Enter the required information and reasons for the reversal of the cancellation of GST registration. Also, supporting documents can be attached. After updating all the details, click on the verification checkbox. Select the authorised signatory and place.

Step 3: Apply Form GST REG-21 with DSC or EVC. A message will be received that the application is successfully submitted.

Time extension to apply for revocation

The department issued a notification no: 03/2023 to extend the time limit to apply for revocation of cancellation of GST registration. Below are the points to be noted:

1. The GST registrations cancelled on or before 31st December 2022 due to the non-filing of tax returns are eligible to apply for revocation.
2. The taxpayers who couldn't apply for revocation within 30 days of the cancellation order can only file for it.
3. Taxpayers can apply for revocation up to 30th June 2023.
4. The revocation application can be filed only after filing the pending GST returns up to the date of cancellation of registration. 
5. The taxpayers shall discharge the tax liability along with interest, penalty and late fee, if any.
6. Below categories of taxpayers whose appeals have been rejected due to time limit constraints can also apply for revocation:
   1. Appeal against the order of cancellation 
   2. Appeal against the order rejecting the application for revocation

The CBIC issued the CGST circular 158/14/2021-GST on 6th September 2021. It clarifies the applicability of the CGST Notification no. 34/2021 dated 29th August 2021

The CBIC temporarily extended the time limit to apply for revocation of cancellation of GST registration up to 30th September 2021 if the due date to apply for such revocation expired anytime from 1st March 2020 to 31st August 2021.

Several taxpayers raised queries about the applicability of this relief to them. Accordingly, the CBIC issued the GST Circular clarifying the matter. It said that the relief is available irrespective of the status of revocation application as applied, under processing, rejected, with the appellate authority, etc, given as per the below table.

A new proviso was inserted in Section 30 of the CGST Act, with effect from 1st January 2021, allowing extension in the due date to apply for revocation if approved by the Additional/Joint Commissioner or the Commissioner for 30 days each.

Many taxpayers had doubts if they can take further extensions of 30 or 60 days, depending upon the approval, beyond 30th September 2021 due to this provision. The CBIC clarified as follows:

The extension is available only in the following cases of cancellation-

• Non-filing of returns for three quarters by a composition dealer
• Non-filing of returns for six periods by a regular taxpayer

Form GST REG-23: Notice cancellation of the revocation application

The concerned officer will verify the revocation application filed in Form GST REG-21. 

Suppose the concerned officer is unsatisfied with the revocation application. In that case, he will send a show-cause notice in Form GST REG-23 to the taxpayer mentioning why he thinks that the refusal application needs to be rejected. He will ask the taxpayer why the refusal application furnished by him should not be rejected.

A chance is given to the taxpayer to provide reasons why not to cancel the GST registration.

The assessee who has received notice in Form GST REG-23 shall respond in Form GST REG-24 within seven working days from the due date of the issue of notice.

If the concerned officer is satisfied with the revocation application: In this case, he will record the cause in writing. He will also issue the order for revocation of GST registration in Form GST REG-22 within 30 days from getting a reply in form GST REG-21.

Form GST REG-24: Giving a reply to a show-cause notice received in Form GST REG-23

If an assessee has received a notice in Form GST REG-23, then he should file a reply in Form GST REG-24 within seven working days from the date of service of notice in Form GST REG-23.

Form REG-24 contains the below information-

• Reference number and date of the notice
• Reference number and date of application
• GSTIN
• Reasons based on which the taxpayer is demanding revocation
• Documents to be attached

The tax officer will verify the reply received in Form GST REG-24.

If satisfied: He will issue the order for revocation of GST registration in Form GST REG-22 within 30 days from the date of getting a reply in form GST REG-24.

If unsatisfied: If the tax officer finds that the reasons provided are unsatisfactory, he can reject the application by issuing an order in Form GST REG-05.

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