Revocation of cancellation of GST registration

GST revocation refers to restoration of the cancelled Goods and Services Tax (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.

The purpose of GST revocation is to provide an opportunity for taxpayers to rectify any issues or circumstances that leads to the cancellation of their GST registration. It allows them to reverse the cancellation and continue their business activities in compliance with GST regulations.

At DisyTax, we simplify revoking your Goods and Services Tax (GST) registration process. Our expert team is here to assist you in smoothly navigating through the revocation procedure, ensuring compliance with all relevant regulations.

Revocation of GST Registration

GST revocation is the process of reinstating a previously cancelled Goods and Services Tax (GST) registration. This allows businesses whose GSTIN (GST Identification Number) has been deactivated—whether voluntarily by the taxpayer or suo moto by tax authorities—to resume their standard business operations under GST regulations. The revocation process is critical for businesses seeking to correct compliance issues or address the circumstances that leads to the cancellation of their GST registration. By successfully completing GST revocation, businesses can once again legally issue GST-compliant invoices, collect GST, and claim Input Tax Credit (ITC) on purchases, ensuring they remain in good standing with tax regulations and continue their commercial activities without disruption.

Rule 23 – Revocation of cancellation of registration

Rule 23 of the Central Goods and Services Tax Rules, 2017, deals with the revocation or restoration of registration under India’s Goods and Services Tax (GST) regime. This rule outlines the procedure and conditions for revoking the cancellation of GST registration. Under this rule, you can file an application for revocation of cancellation of GST registration.

Reasons for GST Cancellation

GST cancellation refers to the termination of a taxpayer’s Goods and Services Tax (GST) registration, which deactivates the GST Identification Number (GSTIN). This cancellation prevents the business from legally collecting GST, issuing GST-compliant invoices, or claiming Input Tax Credit (ITC) on purchases. Cancellation can be initiated by either the taxpayer for various reasons or by GST authorities due to non-compliance or other issues.

Cancellation Initiated by the Taxpayer:

• Discontinuation or Closure of Business: If business operations are permanently shut down or discontinued, the taxpayer can apply for cancellation.
• Business Transfer or Merger: If the business is transferred, merged, sold, leased, or otherwise disposed of, the existing GST registration may need to be cancelled.
• Change in Business Structure: Changes in business structure, such as converting a partnership firm into a company, require the cancellation of the old GST registration.
• Turnover Below GST Threshold: If annual turnover falls below the threshold (Rs.40 lakh for goods or Rs.20 lakh for services), GST registration may no longer be necessary.
• Voluntary Cancellation: Taxpayers may voluntarily cancel their GST registration for various personal or business reasons, even if maintaining registration isn’t mandatory.
  
  

Cancellation Enforced by GST Authorities:

• Non-Compliance with GST Laws: Authorities may cancel a registration if a regular taxpayer fails to file returns for six consecutive months or a composition taxpayer fails to file for three consecutive months.
• Fraudulent GST Registration: If registration was obtained through fraud, misstatement, or suppression of facts, it can be revoked.
• Violation of GST Rules or Act: Significant or repeated non-compliance with GST laws may lead to cancellation.
• Engaging in Unauthorized Activities: Conducting unauthorized or fraudulent activities, such as issuing fake invoices, may trigger cancellation.
• Non-Commencement of Business: If a taxpayer fails to commence business within a specified timeframe post-registration, the GST authorities may cancel the registration.
• Wrongful Claim of ITC: Authorities may also cancel registration if a taxpayer wrongfully avails or utilizes ITC without receiving the goods or services.
  
  
  

Re-apply for GST After Voluntary Cancellation

Once a business GST registration is voluntarily cancelled, there is no option to revoke or reactivate the previous registration. Should the business require GST registration in the future, it will need to reapply for a new GST registration.

Why GST Revocation is Crucial for Your Business

If your GST registration remains cancelled, it can lead to several significant operational and financial setbacks for your business. Here’s a look at the key impacts:

Inability to Issue GST-Compliant Invoices

• Legal Restrictions: Once GST registration is cancelled, your business cannot legally collect GST on sales.
• Customer Loss: Without GST-compliant invoices, you may lose customers who need proper documentation to claim an input tax credit (ITC).

Loss of Input Tax Credit (ITC)

• Increased Expenses: With a cancelled GST registration, you are ineligible to claim ITC on purchases, which can significantly increase business costs.
• Reduced Competitiveness: Bearing the full cost of taxes can make your pricing less competitive in the market.

Penalties for Unauthorized GST Collection

• Legal Violations: Continuing to collect GST without a valid registration is an offence under GST laws.
• Severe Penalties: Authorities may impose hefty fines equivalent to the amount of GST collected, along with possible additional legal repercussions.

Business Disruptions and Loss of Credibility

• Relationship Risks: A lack of valid GST registration can deter customers and suppliers, potentially harming business relationships.
• Reputation Damage: An inactive GST registration might suggest non-compliance, negatively affecting your business’s credibility in the market.

Revoking a GST cancellation and restoring your GST registration can help mitigate these risks, ensuring your business operates legally and maintains its competitive edge.

Important Considerations Before the Revocation of GST Registration

Before proceeding with the revocation process, here are a few key points to consider:

• Outstanding dues:Ensure that all outstanding tax liabilities, interest, penalties, and fees have been paid before initiating the revocation process. Failure to do so may result in complications and legal consequences.
• Pending returns:File all the pending GST returns up to the revocation date. It is essential to fulfil your tax obligations and provide accurate financial information before closing your GST registration.
• Input tax credit:Make sure you have reversed or paid back any unutilized input tax credit on your inventory or capital goods to the government, per the applicable regulations.
• Compliance requirements:Application for revocation of cancellation of registration does not exempt you from any legal obligations and compliances for the period during which your registration was active. Maintain all necessary records and documents for future reference and audits.
  
  
  

Time Limit for Revocation of GST Registration

Starting October 1, 2023, taxpayers now have up to 90 days from the date the cancellation order is served to apply for the revocation of a cancelled GST registration. This extension from the previous 30-day window allows businesses additional time to meet compliance requirements, settle any pending returns, and prepare the necessary documentation to reinstate their GST registration effectively.

Documentation Required for Revocation of GST Registration

Revocation of a cancelled GST registration, especially after an extended period, requires thorough preparation and submission of several essential documents. Having these documents ready will facilitate a smooth reactivation process.

• GSTIN and Login Credentials: You’ll need your GST Identification Number (GSTIN) and login credentials to access the GST portal and begin the revocation process. If you have forgotten your login details, you can recover them on the portal using the “Forgot Password” option.
• PAN Card of the Business or Proprietor: The Permanent Account Number (PAN) of the business or proprietor is crucial for verifying identity. It must match the records that were submitted during the original GST registration.
• Proof of Address: Valid proof of the business’s registered address is required. Acceptable documents include:
  • Electricity bill
  • Rental or lease agreement
  • Municipal tax receipt
  • Property ownership documents
• Bank Account Details: Provide a bank account statement, a cancelled cheque, or a copy of the bank passbook to verify your business’s financial account. The account should be in the name of the business or proprietor.
• Filed GST Returns: It is essential to file all pending GST returns for the period during which your registration was inactive. Maintain copies of these filed returns as part of your documentation to prove compliance till date.
• Application for Revocation (Form GST REG-21): You will need to complete Form GST REG-21, the official application for revocation of a cancelled GST registration. Fill out this form with the necessary details and upload it to the GST portal along with other required supporting documents. This comprehensive approach ensures that the reactivation of your GST registration is completed without any complications.
  
  
  

Get Started with DisyTax’ GST Revocation Service

Get started with DisyTax’ GST Revocation Service and streamline the process of reinstating your cancelled GST registration. DisyTax is equipped to guide you through every step, ensuring that your application is handled efficiently and compliantly. From gathering the necessary required documents to submitting your application on the GST portal, DisyTax makes the revocation process straightforward and easy. Let us help you to restore your GST registration so you can continue your business operations without any legal disruptions.

Our GST Revocation Service Process

• Consultation:Our team will conduct an initial consultation to understand your requirements and assess your eligibility for GST revocation. We will explain the process in detail and address any queries.
• Collection of required Document:Our experts will guide you in gathering the necessary documents, such as the GST registration certificate, financial statements, tax returns, and any other supporting documents required for the revocation application.
• Application Preparation:We will prepare your revocation application accurately and thoroughly based on the information provided. Our team will ensure that all the required details are included, minimising the chances of rejection or delay.
• Application Filing:We will file the revocation application on your behalf through the official GST portal. Our experts will meticulously complete the online form, attach the supporting documents, and apply electronically.
• Application Tracking:Throughout the revocation process, our experts will keep you updated on the progress of the application. We will provide regular status updates and notify you of any additional information or documentation requested by the tax authorities.
• Revocation Order:Once the tax authorities review and approve your application, they will issue a revocation order. Our team will notify you promptly and provide the necessary documents for your records.

Ready to restore your GST registration? Contact DisyTax today for expert assistance with your GST revocation

Frequently Asked Questions (FAQs)

What is GST revocation?

GST revocation refers to the process of canceling or revoking the registration of a taxpayer under the Goods and Services Tax regime.

Why would my GST registration be revoked?

Your GST registration can be revoked if you violate any provisions of the GST Act, fail to file returns for a specific period, or engage in fraudulent activities

How can I request the revocation of my GST registration?

You can submit an application for revocation of GST registration through the GST portal.

What documents are required for GST revocation?

The specific documents required may vary based on your circumstances, but generally, you would need to provide a revocation application, along with supporting documents such as financial statements, bank statements, and compliance-related documents

Is there a time limit for applying for GST revocation?

Yes, you must apply for GST revocation within thirty days from the date of GST Registration cancellation

Can I voluntarily apply for GST revocation?

Yes, you can voluntarily apply for GST revocation if you believe you no longer meet the requirements for GST registration or wish to cease your business activities.

How long does the GST revocation process take?

The time taken for GST revocation can vary, but generally, it takes around 15-30 days from the date of application submission

Will I be liable for any penalties if my GST registration is revoked?

If your GST registration is revoked, you may be liable for penalties for any non-compliance or violations committed during the period of your registration.

Can I reapply for GST registration after revocation?

Yes, you can reapply for GST registration after the revocation of your previous registration.

Can GST revocation be done on a retrospective basis?

No, GST revocation is not allowed retrospectively. It can only be applied for from the date of cancellation or a future date.

What happens to my Input Tax Credit (ITC) if my GST registration is revoked?

If your GST registration is revoked, you may lose the unutilized Input Tax Credit available in your account

Will I have to pay any tax dues before applying for GST revocation?

Yes, you must clear all outstanding tax dues and file any pending returns before applying for GST revocation

Can I appeal against the revocation of my GST registration?

Yes, you can file an appeal against the revocation of your GST registration within the prescribed time limit.

What is the effect of GST revocation on my business operations?

Once your GST registration is revoked, you cannot collect GST from customers or claim ITC. It may affect your ability to conduct certain business transactions.

How do I restore my cancelled GST registration after 1 year?

IF your GST registration has been cancelled for more than one year, you cannot restore the cancelled registration. In such cases, you would need to apply for a new GST registration by following the regular registration process

What is the Time Limit for Revocation of Cancelled GST Registration?

The time limit for revocation of cancelled GST registration in India depends on who initiated the cancellation. If taxpayers voluntarily cancel their registration, they have 30 days from the cancellation event to apply for revocation. For cancellations initiated by the tax authorities, they have 30 days to issue a revocation order after starting proceedings.

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