Are you looking to activate cancelled GST Registration? We got you. Here’s a step-by-step guide that tells you everything you need to do.
So let’s jump straight to it.
What Is GST Registration Cancellation
The taxable person shall no longer be a GST registered person if his or her GST registration is canceled.
He neither has to pay nor collect GST, and he won’t have to claim the input tax credit, thus he won’t have to file GST reports.
Outcomes Of GST Registration Cancellation
- The taxable person won’t have to pay GST anymore.
- GST registration is required for certain businesses. If the GST registration is cancelled, but the company continues, it will be considered a GST violation with severe penalties.
Causes Of Cancelled Registration
Following are causes why registration of GST gets cancelled:-
- If a person isn’t liable to pay taxes under the GST Act.
- In case any business is discontinued, the ownership is transferred, demerged, involved in any illegal activities, or otherwise disposed of.
- If changes occurred in the constitution of the business.
- If a person liable to pay tax (except the person who has voluntarily registered under the sub-section (3) of section 25 of the CGST Act) is no longer liable to have registration.
- If a registered person has violated such provisions of the Act or the rules made by authorities or tax officers.
- If a person paying tax under Composition custom has not filed for a return for three years in a row.
- If a registered person, except the person paying tax under Composition custom, has not provided returns for six months.
- If a person who has taken deliberate registration under the sub-section (3) of section 25 has not initiated business within six months from registration.
- If a person registered using illegal means or fraud.
What Are Final Returns
When the registration of a registered individual other than an Input Service Distributor, a non-resident taxable person, or a person paying tax under the composition scheme or TDS/TCS is cancelled, the person must file a final return electronically in FORM GSTR-10 within three months from the date of cancellation or the order of cancellation, by the common portal either through a Facilitation Centre actively notified by the Commissioner or directly.
Time Period To Reactivate Cancelled Registration
In case you want to apply for revocation of cancellation of GST registration, you’ll only have thirty days from the date of service of the order of cancellation of GST registration.
The application for revocation of the cancellation of GST registration can only proceed if it was cancelled by legal officers on his own terms. Therefore, revocation cannot be used when GST registration is canceled intentionally by a taxpayer.
Activation Of Canceled GST
If the particular registration is canceled by the Officer according to his own consideration and not based on an application, then the person who has cancelled registration can submit an application for reactivation of cancelled registration within 30 days.
- However, if the registration has been cancelled because a person failed to provide returns, a person can fill the application form after submitting returns, late fee or any other fee applicable at that time.
- If the officer is satisfied after the verification of the application, for reasons to be recorded in writing, that there are sufficient reasons for revocation of cancellation of registration;
- But suppose the officer is not satisfied after the examination of the application for revocation. In that case, he will issue a notice needing the applicant to show conditions to avoid rejection of the application and the applicant has to provide a reply within seven working days from the date of the service.
- After the information of receipt or verification by the officer, the application should be disposed of within 30 days from the date of receipt verification or details by the applicant. If the officer is satisfied with the clarification provided by the applicant, the application will be disposed of. Otherwise, the applicant will be mandatorily given an opportunity to present himself. After the reasons get recorded officer might communicate with the applicant on this subject
- As the state of the revocation of cancellation of registration under the State GST Act or the Union Territory Goods and Services Tax Act shall be considered to be a revocation of cancellation of registration under the Central GST Act.
Response To A Show-Cause Notice Received In Form GST REG-23 Using Form GST REG-24
If an assessee receives a notification in Form GST REG-23, he must respond in Form GST REG-24 within seven working days of receiving the notice in Form GST REG-23.
The following information can be found on the REG-24 form:
- The notice’s reference number and date
- Date of application and reference number
- The reasons for the taxpayer’s demand for revocation
- Attachment of Documents
- The tax officer goes through the response on Form GST REG-24.
And if everything checks out, the order for GST registration revocation in Form GST REG-22 is passed by the officer within 30 days of receiving a response in Form GST REG-24. In case there are any discrepancies found, the officer also holds the power to reject your application by issuing an order in Form GST REG-05.
Online Process For The Revocation
Following are the steps to be taken for the online process of how to activate cancelled registration of GST-
- Visit this website www.gst.gov.in to access the GST portal.
- To login into your account, enter your credentials.
- After login, go to Dashboard, select services, under services select registration and after selecting registration option select Application for Revocation of cancelled registration option.
- Select the option to apply for revocation of cancelled registration.
- Fill in the reason for revocation.
- Then you need to choose a relevant file to be attached as a ground for your application.
- Then you need to check the verification checkbox and select the name of the approved signatory and fill up the place filed box.
- At last, select the SUBMIT WITH DSC OR SUBMIT WITH EVC box.
Online Application Processing
If the reason stated by the applicant for the application of the activation or cancellation of the GST registration is satisfactory for the officer then he can revoke the cancellation of registration.
He has to revoke the cancellation within 30 days, it is required to pass an order revoking the cancellation of registration in FORM GST REG-22.
Offline Procedure For The Application For The Revocation Of Cancellation
Following are the steps to be taken to submit the application offline to activate the cancelled registration of GST-
- To submit the application for the Revocation of Cancellation of GST Registration, you have to submit the FORM GST REG-21 directly or through a facilitation centre. You can download this form from the GST portal (www.gst.gov.in).
- You have 30 days from the date of service of the revocation order to file the application through the Common Portal.
- The authorised officer may rescind the cancellation of the registration if the authorised officer determines that there are valid reasons as defined by the Act. Within 30 days of receiving the application, the officer will respond using FORM GST REG-22. All data for revocation or cancellation of registration must be recorded in writing by the officer.
- The proper authority must make a decision within 30 days of receiving the applicant’s clarification in FORM GST REG-24.
- Before rejecting a revocation application, a concerned GST officer must issue a notice in FORM GST REG-23. Within seven working days of receiving the notification, the applicant must submit a satisfactory response in FORM GST REG-24. Once the office received an appropriate response from your end, their job is to issue a suitable order in FORM GST REG-05 within 30 days of receiving your reply.
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As stated in the preceding article, you can only revoke a cancelled GST registration within 30 days of receiving the order of cancellation; otherwise, you will not be able to withdraw your cancelled GST registration.
It can only be revoked when the GST authority performs the cancellation; otherwise, it will not be revoked.
You can visit the official website of GST to file your application for revocation of GST registration. As you can see, the online approach is faster than the offline procedure, and the online procedure is very easy and simple.
You must include your cause for revocation in your application and then submit it on the website; if the concerned officer finds your reasons satisfactory, the officer will cancel your GST number.
Frequently Asked Questions(FAQs)
What is the time period after cancellation of GST registration in which I can apply for revocation?
The application should be filed within 30 days after receiving the notice of cancellation of GST registration.
Who is not eligible for the revocation of cancellation of GST registration?
A person who voluntarily canceled his registration, taxpayers registered as tax deductors or collectors, and taxpayers who have been allotted UIN are not eligible.
Is it necessary to file a GST return?
GST requires that you file a return. You must file a Nil return even if there is no transaction.
There are many things to check some of which are: If you haven’t filed your previous month’s or quarter’s return, you won’t be able to file this month’s or quarter’s return.
If any regular taxpayer fails to file a return for six months in a row, the GST Officer may terminate the taxpayer’s GST registration.
What are some of the penalties for late filing of GSTR?
The late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. The total will be Rs. 200/day. The maximum is Rs. 5,000. There is no late fee on IGST.
What are some of the penalties for not filing the GSTR?
Penalty 10% of the tax due or Rs. 10,000.