Under GST Laws, officers are empowered to cancel the GST registration certificate issued to any taxpayer under certain circumstances. Parallely, a revocation facility is also being provided to taxpayers to reinstate the registration by applying to the officer for the same.
In this article, we will discuss the provisions of revocation of cancellation of GST Registration i.e. to Get back or reinstate the cancelled GST Number.
Section 30 of CGST Act 2017 (as amended) provides that any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order.
It is further provided that where said period of thirty days expired, the same may be extended for next thirty days by the Additional Commissioner or the Joint Commissioner.
Further, where said extended period also expired, the same may be extended for next thirty days by the Commissioner.
Rules for Revocation of Cancellation
Rule 23 of CGST Rules provide the manner and other conditions for filing application for revocation, which are as follows:-
- Only those registered persons are allowed to file revocation of cancellation whose registration is cancelled by GST Officer by his own. Those persons who have applied by cancellation of GST registration by their own wish, are not eligible to avail this facility.
- The period to file application for revocation of cancellation is 30 days from the date of order. After that, prior approval required from AC/JC for seeking any extention.
- The application for Revocation can be filed in Form GST-REG-21.
Application for revocation of Cancellation where reason for cancellation is non-filing of returns:-
Where reason for cancellation of registration is non-filing of GST returns, application for revocation can be filed only after filing all the pending returns and paying all taxes, penalty, fee and interest dues as on date.
GST portal does not provide window for filing said application unless all the returns pending to file till that date are not filed.
What if effective date of cancellation of registration is prior to current date :-
In this case, firstly, it is required to file all the returns pending as on that past date.
Let’s suppose that, the registration is cancelled by GST officer on 14th April 2021 w.e.f. 1st January 2021. In this case, GST portal will provide return filing window upto December 2020 only. Here, the taxpayer needs to file all the pending returns till 31st December 2020.
Is there any time limit for filing of returns which are pending between the date of cancellation order and date of revocation order
Where there is a gap between date of cancellation of registration and the date of order of revocation of such cancellation, it is required to file all the pending returns within 30 days from the date of revocation of cancellation.
Continuing with above example, where revocation order approved on 15/05/2021, returns from 1st Jan 2021 to 30th April 2021 should be filed within 30 days starting from 15/05/2021.
What is the procedure to get extention beyond expiry of statutory period of 30 days:-
CBIC, through its Circular No. 148/04/2021 dated 18/05/2021, provides the procedure to seek extention of time to apply for revocation of cancellation.
As earlier said, Section 30 provides for extention of 30 days + 30 days beyond initial 30 days. Hence, total period (with the approval) becomes 90 days for application. However, for the time being, the facility for extention is not available on GST portal. So, a manual procedure is provided thorugh the said circular.
Circular Title : Standard Operating Procedure (SOP) for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the CGST Act, 2017 and rule 23 of the CGST Rules, 2017
Extention of first thiry days : Power to give extention is lying with the JC/AC
Extention of next thiry days : Power to give extention is lying with Commissiner
Procedure for seeking extention from JC/AC:-
Where a person applies for revocation of cancellation of registration beyond a period of 30 days from the date of service of the order of cancellation of registration but within 60 days of such date, the said person may request, through letter or e-mail, for extension of time limit to apply for revocation of cancellation of registration to the proper officer by providing the grounds on which such extension is sought.
The proper officer shall forward the request to the jurisdictional Joint/Additional Commissioner (JC/AC) for decision on the request for extension of time limit.
The Joint/Additional Commissioner, on examination of the request filed for extension of time limit for revocation of cancellation of registration and on sufficient cause being shown and for reasons to be recorded in writing, may extend the time limit to apply for revocation of cancellation of registration.
In case the request is accepted, the extension of the time limit shall be communicated to the proper officer.
On receipt of the decision of the Joint/Additional Commissioner, the proper officer shall process the application for revocation of cancellation of registration according to the law and procedure laid down in this regard.
However, in case the concerned Joint/Additional Commissioner, is not satisfied with the grounds on which such extension is sought, an opportunity of personal hearing may be granted to the person before taking decision in the matter.
In case of rejection of the request for the extension of time limit, the grounds for such rejection may be communicated to the person concerned, through the proper officer.
Procedure for seeking extention from Commissioner:-
Same as followed in case of the JC/AC.
Consequences of non filing of application for revocation of cancellation
Sometimes, few of smart persons thought to apply for fresh GST number without paying taxes and filing returns in previous GST registrations. In this regard, let us remind you that government is already on high alert to issue fresh GST number to all these smart persons.
A Circular was issued on 28th March 2019 by CBIC saying,
It was observed that a large number of registrations have been cancelled by the proper officer under the provisions of sub-section (2) of section 29 of the Central Goods and Services Act, 2017 (hereinafter referred to as “CGST Act”) read with rule 21 of the Central Goods and Services Rules, 2017 (hereinafter referred to as “CGST Rules”) on account of non-compliance of the said statutory provisions.
In this regard, instances have come to notice that such persons, who continue to carry on business and therefore are required to have registration under GST, are not applying for revocation of cancellation of registration as specified in section 30 of the CGST Act read with rule 23 of the CGST Rules. Instead, such persons are applying for fresh registration. Such new applications might have been made as such person may not have furnished requisite returns and not paid tax for the tax periods covered under the old/cancelled registration. Further, such persons would be required to pay all liabilities due from them for the relevant period in case they apply for revocation of cancellation of registration. Hence, to avoid payment of the tax liabilities, such persons may be using the route of applying for fresh registration.
It is pertinent to mention that as per the provisions contained in proviso to sub-section (2) of section 25 of the CGST Act, a person may take separate registration on same PAN in the same State.
To deal with such situations, CBIC has issued instructions to officers as given below:-
It is hereby instructed that the proper officer may exercise due caution while processing the application for registration submitted by the taxpayers, where the tax payer is seeking another registration within the State although he has an existing registration within the said State or his earlier registration has been cancelled.
It is clarified that not applying for revocation of cancellation of registration along with the continuance of the conditions specified in clauses (b) and (c) of sub-section (2) of section 29 of the CGST Act shall be deemed to be a “deficiency” within the meaning of sub-rule (2) of rule 9 of the CGST Rules.
The proper officer may compare the information pertaining to earlier registrations with the information contained in the present application, the grounds on which the earlier registration(s) were cancelled and the current status of the statutory violations for which the earlier registration(s) were cancelled. The data may be verified on common portal by fetching the details of registration taken on the PAN mentioned in the new application vis-a-vis cancellation of registration obtained on same PAN.
The information regarding the status of other registrations granted on the same PAN is displayed on the common portal to both the applicant and the proper officer.
Further, if required, information submitted by applicant in S. No. 21 of FORM GST REG-01 regarding details of proprietor, all partner/Karta/Managing Directors and whole time Director/Members of Managing Committee of Associations/Board of Trustees etc. may be analysed vis-à-vis any cancelled registration having same details.
While considering the application for registration, the proper officer shall ascertain if the earlier registration was cancelled on account of violation of the provisions of clauses (b) and (c) of sub-section (2) of section 29 of the CGST Act and whether the applicant has applied for revocation of cancellation of registration.
If proper officer finds that application for revocation of cancellation of registration has not been filed and the conditions specified in clauses (b) and (c) of sub-section (2) of section 29 of the CGST Act are still continuing, then, the same may be considered as a ground for rejection of application for registration in terms of sub-rule (2) read with sub-rule (4) of rule 9 of CGST Rules.
Therefore, it is advised that where the applicant fails to furnish sufficient convincing justification or the proper officer is not satisfied with the clarification, information or documents furnished, then, his application for fresh registration may be considered for rejection.
Other than this, penalties leviable under section 122 of CGST Act 2017 would be imposed…..
Extention of time period due to Corona Virus – 2021
In view of Notification No. 14/2021 dt. 01.05.2021, the timeline for filing the ‘Application for Revocation of Cancellation’ has been extended for those applicants, for whom the due date to file the same falls between 15 April to 30th May, 2021. Now, they can file the said application till 31st May, 2021
Reasons for cancellation of Registration by Officer
As per Section 29 of CGST Act, 2017, GST officer can cancel GST registration in following circumstances:-
- A Composition Dealer has not furnished returns for three consecutive tax periods; or
- Any registered person other than Composition Dealer has not furnished returns for a continuous period of six months; or
- Any person who has taken voluntary registration under section 25(3) has not commenced business within six months from the date of registration; or
- Registration has been obtained by means of fraud, wilful misstatement or suppression of facts
- Registered person does not conduct any business from the declared place of business; or
- Registered person issues invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder; or
- violates the provisions of section 171 of the Act or the rules made thereunder (Anti-profiteering)
- violates the provision of rule 10A (i.e. not furnished Bank Account details after registration)
- Avails input tax credit in violation of the provisions of section 16 of the Act or the rules made thereunder; or
- Furnishes the details of outward supplies in FORM GSTR-1 under section 37 for one or more tax periods which is in excess of the outward supplies declared by him in his valid return under section 39 (i.e. GSTR-3B) for the said tax periods; or
- Violates the provision of rule 86B.