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On its online portal, the Central Board of Indirect Taxes and Customs (CBIC) has made it possible to restore a cancelled registration under the Goods and Services Tax (GST). CBIC said in a communication to its field officers that a feature called ‘Restoration of Cancelled Registration’ has been developed and deployed on the portal w.e.f. 23.03.2022, to help jurisdictional Range officers restore registrations in response to judicial or appellate orders. This functionality applies to cancellations ordered on by officers as well as cancellations requested by taxpayers.
Need to Activate a Cancelled GST Registration
If a taxpayer fails to apply for revocation of cancellation, it will be considered a “deficiency” under Rule 9 (2) of the Central Goods and Service Tax Rules, 2017 and can be used as a reason to reject an application for new registration.
If, on the other hand, the taxpayer continues to trade goods and supplies without registering for GST, it will be considered a violation of GST law, and the taxpayer will be subject to severe penalties.
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With effect from January 1, 2021, Section 30 of the Central Goods and Services Tax (CGST) Act has been changed to include a new proviso. This provision allows the Commissioner or Additional or Joint Commissioner to extend the deadline for filing a revocation application by 30 days. However, it should be noted that the time restriction can only be extended in the following circumstances:
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Forms Used To Activate a Cancelled GST Registration
The application for revocation of GST cancellation involves numerous forms in the process. The forms include:
| Form Name | Form Purpose |
| GST REG – 21 | Suo moto application for revocation of cancellation of GST Registration by the GST officer |
| GST REG – 23 | The GST officer notifies the taxpayer of the cancellation of the revocation application. |
| GST REG – 24 | The taxpayer’s response to a show-cause notice received in Form GST REG – 23 |
| GST REG – 22 | The final order approving the revocation of cancellation of registration |
| GST REG – 05 | The final order rejecting the revocation of cancellation of registration |
Reasons for a Cancelled GST Registration
The GST registration or GSTIN issued may be cancelled for a variety of reasons. The department may initiate the cancellation process on its own, or the registered individual may request that their registrations be cancelled. The legal heirs of a deceased person can also request that the GST registration be cancelled. Other reasons for GST registration cancellation exist, and they are as follows:
- A taxpayer has violated any of the Act’s or its rules’ clauses, or any specific Acts’ or rules’ provisions;
- A taxpayer paying tax under section 10 has failed to file returns for three tax periods in a row;
- Any registered person, other than a persons excempt, has not produced returns for a period of six months; or any individual who has obtained voluntary registration under section 25 sub-section (3) and has not begun business after six months after receiving the registration.
- In case, deception, willful misrepresentation, or concealment of facts were used to obtain registration.
How To Activate a Cancelled GST Registration
On the GST portal, a registered taxpayer can request the revocation of a cancelled GST registration. The following are the steps for submitting an online application:
- By clicking the login button and entering the login credentials, namely the user id and password, the GST portal can be accessed.
- On the GST dashboard, select the menu services. Select registration from the drop-down menu of services.
- Click the submenu application for revocation of cancelled registration under the registration menu.
- Select the option for revocation of registration and enter the reason for revocation of the cancelled registration in the window that appears.
- By clicking the choose file button, you can attach any necessary supporting documents.
- After that, select the name of the authorised signatory from the drop-down menu and click the verification checkbox.
- In the place field, type the name of the location.
- If the need arises, the application can be saved and retrieved later for submission.
- Then submit with Electronic Verification Code (EVC) or submit the Digital Signature Certificate (DSC), as appropriate and convenient.
- You will receive an OTP on your registered mobile and email.
- After submitting an application for GST cancellation revocation, a message is received from the GST portal confirming the submission, and an ARN is generated to acknowledge the same.
- The application and reason for revocation of cancellation would be reviewed by the appropriate authority. The officer revokes the cancellation of the GST registration if he is with the reason and the documents submitted.
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