Procedure for Revocation of Cancellation of registration with FAQ as per GST council 4Oth Meeting

Introduction

The GST 40^th Council Meet chaired by Finance Minister, Nirmala Sitharaman was held on 12^th of June, 2020. The GST Council has decided to provide an opportunity to revoke the cancellation of GST Registration.

As COVID-19 continues to spread across the world, businesses are facing significant levels of instability and uncertainty caused by weakened financial markets and disruption to workplace operations. Compliance is a key area where the impact of COVID-19 is felt immediately and keenly. In a time where social distancing is being preached to mitigate the issue of the pandemic, registered GST holders across the country are facing problems in fulfilling their GST compliances.

To facilitate taxpayers who could not get their canceled GST registrations restored in time, an opportunity is being provided for filing of the application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been canceled till 12.06.2020.

GST Registration can be cancelled due to the below mentioned reasons:-

1. person registered under any of the existing laws, but who is not liable to be registered under the GST Act
2. business has been discontinued, transferred fully for any reason
3. there is any change in the constitution of the business
4. the taxable person is no longer liable to be registered
5. registered person has contravened such provisions of the GST law
6. person paying tax under Composition levy has not furnished returns for 3 consecutive tax periods
7. any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of 6 months
8. any person who has taken voluntary registration section 25(3) and has not commenced business within 6 months from the date of registration
9. registration has been obtained by means of fraud, willful misstatement or suppression of facts

Procedure for Revocation of Cancellation

Application for Revocation

When the registration has been cancelled by the Proper Officer on his own motion, then the registered person, whose registration has been cancelled, can submit an application for revocation of cancellation of registration, to the Proper Officer, within a period of 30 days from the date of the service of the order of cancellation of registration.

If the registration has been cancelled for failure to furnish returns, application for revocation shall be filed, only after such returns are furnished and any amount tax due, interest, penalty and late fee in terms of such returns, has been paid.

Steps taken if Proper Officer is satisfied

On examination of the application if the Proper Officer is satisfied, that there are sufficient grounds for revocation of cancellation of registration, then he shall revoke such cancellation by an order within 30 days from the date of the receipt of the application and communicate the same to the applicant.

Steps taken if Proper Officer is not satisfied

If on examination of the application for revocation, if the Proper Officer is not satisfied then he will issue a notice requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to furnish the reply within 7 working days from the date of the service of the notice.

Upon receipt of clarification, the Proper Officer if satisfied shall dispose of the application within 30 days from the date of the receipt of such clarification from the applicant.

In case it is not satisfactory the applicant will be mandatorily given an opportunity of being heard, after which the Proper Officer after recording the reasons in writing may by an order, reject the application for revocation of cancellation of registration and communicate the same to the applicant.

Let us refer to the example below to understand what benefit is being provided by the 40^th GST Council Meet:

Suppose, Mr. A, is a registered person whose returns were not filed for the past 6 months (November 2019 to April 2020), due to which he registration was cancelled by the Proper Officer vide an order dated 10^th May, 2020.

Mr. A wanted to apply for revocation of cancellation for which he wanted to file all his pending returns and pay all his tax dues. However, he was unable to apply for the same within 30 days due to the lockdown restrictions.

Now due to the extension provided under the GST Council Meeting, Mr. A can apply for revocation of cancellation till 30^th September, 2020 as the order of cancellation of GST registration was served before 12^th June, 2020.

FAQ’s on Revocation of Cancellation Reg GST

1.I have not filed my GST Returns for last 8 months, now I have received show cause notice for Suo-Motto cancellation. What should I do in this situation?

As per law, if a GST Registered persons defaults in GST Return filing for continuous 6 Months, Proper Officer has the power to cancel your GST registration. If the registration has been cancelled for failure to furnish returns, application for revocation shall be filed, only after such returns are furnished and any amount tax due, interest, penalty and late fee in terms of such returns, has been paid.

2. I am a defaulter of the GST rules and my GST registration has been suo-motto cancelled by GST Officer but I want to continue my GST Number. What should I do in this situation?

If your GST Registration has been Suo-Motto cancelled by the Proper Officer, then you have the option to apply for revocation of cancellation of registration within 30 days from the date of cancellation order.

3. I have applied for GST Revocation and my revocation request has been rejected by GST Officer, what I should do in this situation?

If your GST Revocation request has been rejected by officer, you have to apply for fresh GST Registration.

4. My GST Registration has been Suo-Motto cancelled by GST Department. At the time of GST Cancellation, stock in hand is Rs 2 lakhs on which I have availed GST Input of Rs 15,000. Am I liable to pay GST on this stock Value?

When GST is cancelled then you have to file GST Final Return within 3 months of GST Cancellation. Details of stock in hand and input availed on that has to be mentioned in the same. The GST Liability has to be paid before filing of final return.

5. My GST registration has been cancelled suo moto by the Proper Officer on May 1, 2020? Till when can I apply for revocation of cancellation of registration?

Your registration has been canceled before 12^th June, 2020. Revocation of cancellation of registration can be applied till 30^th September, 2020.

6. My GST registration has been cancelled suo moto by the Proper Officer on June 14, 2020? Till when can I apply for revocation of cancellation of registration?

Your registration has been canceled after 12^th June, 2020. Revocation of cancellation of registration can be applied till 12^th July, 2020 (within 30 days).

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