INITIATING CANCELLATION AND REVOCATION
- Cancellation can be initiated by the department at his own motion under Sec 29 of the Act and Rule 21 of CGST Rules.
- Revocation of cancellation can be applied in FORM GST REG-21 to the Proper Officer under Rule 23(1).
TIME LIMIT & PROCEDURE FOR REVOCATION
- Revocation application must be submitted within 30 days from the date of cancellation order.
| The time limit can be extended by the AC, JC | a period not exceeding thirty days |
| The time limit can be extended by the Commissioner | Time period permitted by AC / JC + upto 30 days |
- The proper officer reviews the reason provided and may pass an order of revocation in FORM GST REG-22.
- If the reason is not satisfactory, the officer may reject the application after issuing a show cause notice in FORM GST REG–23
- Applicant must reply in FORM GST REG- 24 within 7 working days from the date of the service of the notice
CHALLENGES DURING INTERIM PERIOD
Carrying out the business during interim period will be challenging
- ITC cannot avail be availed, being not considered as registered person during suspension
- The portal will block filing of the returns.
- Being considered as unregistered person the Taxpayers can not issue a Tax Invoice nor collect any amount in the name of GST during, consequently cannot pass on ITC.
REMEDY POST REVOCATION
Raised Revised Invoice
When registration is revoked or restored, the taxpayer can issue revised tax invoices against the invoices issued during the suspension period
Filing of GST Returns
All the invoices issued during the suspension period should be should declare in the first return filed after the suspension/cancellation is revoked, as per Section 40 of the CGST Act.
Entitlement of ITC
- ITC can be availed post revocation provided they meet the conditions specified in section 16 of the GST Act.
- ITC cannot be availed without being its reflected in GSTR-2B in term of sec 16 (2) (aa) and during suspension period suspended registration numbers will not be accepted by the portal for return filing. Therefore, Taxpayers should contact their suppliers after the suspension to request amendments to their GSTR 1 and include the sales made to them.
Late Fees
There is no specific provision waiving the late fees for the period from the date of Order of Cancellation till the Date of Revocation
AMNESTY SCHEME FOR RESTORATION OF REGISTRATION
Notification No. 3/2023-CT provides onetime opportunity for revocation of cancellation, for return non-filer dealer & for the dealers who fails to filed revocation application within the time period specified in the section 30
Conditions of Amnesty Scheme
- Application for Revocation should be made on or before 30th June, 2023
- All the due returns up to the date of cancellation of registration should be filed
- Payment of taxes, interest, penalty and late fee in respect of the such returns should be paid
ADVISORY NOTE TO DEPARTMENT OFFICERS
Guidelines has been provided to the officers for disposal of revocation applications.
- Actions include visiting the place of business,
- File all pending Return
| Before filing revocation application | Where cancellation is prospective |
| within 30 days from the date of order | Where cancellation is retrospective |
- Ensuring all payments are made before an order of Revocation of Cancellation of Registration
- Post revocation failure in compliance lead to action under section 29, section 75(12), section 62, section 132
IGNORING REVOCATION & APPLYING AFRESH
Failure to apply for revocation may lead to rejection of new registration applications.
Circular no. 95/14/2019-GST dated 28th March 2019 clarify that –
- The proper officers shall ensure whether existing registrations are active or cancelled when a taxpayer applies for another registration.
- The Proper Officer has the authority to reject a fresh registration application if the applicant’s previous registration was cancelled due to violations of Section 29 (2) (b) or Section 29 (2) (c).