What is cancelled GST registration?

The GST registration can be cancelled for specified reasons, either by an initiative by the GST authority suo moto, or the GST registered person can apply for cancellation of the registration number.

In case, the person holding the GST registration dies, the legal heirs can apply for the cancellation of the GST registration.

The reasons for the cancellation of the registration of GST are as follows:

● If the person is not eligible to be registered under the GST Act.
● When the business for which the GST registration had been obtained, is closed
● If there is any change in the business constitution.
● The person liable to pay GST is no longer liable for the same.
● The registered person has contravened any of the provisions under the GST Act.

What is the procedure for revocation of cancelled GST registration?

The procedure for cancellation of a GST registration is as follows:

Step One: When the registration of GST is cancelled by the appropriate officer suo moto and not on the basis of an application of cancellation, then the person, whose GST registration has been cancelled shall file FORM GST REG- 21 within 30 days from the date of service of the cancellation order has been passed, either through the portal or through a centre notified by the commissioner.

If the failure of filing the return has been the reason for the cancellation of GST registration, the revocation application requires to be filed after furnishing the due returns with the penalty amount.

Step Two: On examination of the application of the GST registration revival, the Assistant or Deputy Commissioners of Central Tax are convinced that there is sufficient ground for a revival of the GST registration, they shall record it in writing, and pass an order for revival using FORM GST REG-22 within a period of thirty days from the date of application communicated by the applicant.

In case, the officer is not convinced, then the rejection shall be communicated by notice in FORM GST REG-23.

Step Three: After recording the reason in writing through FORM GST REG- 24, the proper officer shall dispose of the applications within a period of thirty days from the date of receiving the information or clarification. After this, the revocation of cancellation of registration under state or central GST Act.

How to activate cancelled GST registration after 1 year?

The CBIC issued the CGST circular 158/14/2021-GST on 6th September 2021. It clarifies the applicability of the CGST Notification no. 34/2021 dated 29th August 2021.

The CBIC temporarily extended the time limit to apply for revocation of cancellation of GST registration up to 30th September 2021 if the due date to apply for such revocation expired anytime from 1st March 2020 to 31st August 2021.

Several taxpayers raised queries about the applicability of this relief to them. Accordingly, the CBIC issued the GST Circular clarifying the matter. It said that the relief is available irrespective of the status of revocation application as applied, under processing, rejected, with the appellate authority, etc.