Last updated: August 22nd, 2024 5:37 PM

CBIC Clarification on Extension of Time Limit for Revocation of Cancellation of GST Registration

The Central Board of Indirect Taxes and Customs (CBIC) vide Circular No. 158/14/2021-GST dated the 6^th September 2021 issued the Clarification on Extension of Time Limit for Revocation of Cancellation of GST Registration. The Central Board of Indirect Taxes and Customs (CBIC) has extended the timelines for filing applications for the revocation of cancellation of GST registration vide notification no.34/2021-Central Tax dated August 29, 2021. To ensure uniformity in the implementation of this notification dated August 29, CBIC clarifies the issues relating to the extension of timelines for application for revocation of cancellation of registration. The current article briefs the CBIC Clarification. Know more about the Application for Cancellation of GSTIN Registration

Gist of Notification

The following clarifications have been given by the Central Board of Indirect Taxes and Customs (CBIC): The date for applying for revocation or cancellation of registration is extended to 30th September 2021, irrespective of the status of the applications. The extension is applicable for the following cases:

• The registration has been canceled under clause (b) or clause (c) of sub-section (2) of section 29 of CGST Act, 2017
• The due date of filing of an application for revocation of cancellation of registration falls between 1st March 2020 to 31st August 2021,

Earlier Announcement of CBIC

The earlier announcement of CBIC regarding the Extension of Time Limit for Revocation of Cancellation of GST Registration is as follows: CBIC vide Circular No. 148/04/2021-GST, dated 18th May 2021 issued the detailed guidelines for implementation of the provision of extension of time limit to apply for revocation of cancellation of GST registration under section 30 of the Central Goods and Services Tax Act, 2017 and rule 23 of the Central Goods and Services Tax Rules, 2017. Hence, an independent functionality for extension of the time limit for applying in FORM GST REG-21 is developed on the GSTN portal.

Extension Announced on 1st May 2021

CBIC vide a notification No.14/2021-Central Tax, dated 1st May 2021 extended the date of filing of an application for revocation of cancellation of GST registration till 30th June 2021, where the due date of filing of the application was falling between 15th April 2021 to 29th June 2021.

Extension Announced on August 2021

The government has issued notification No. 34/2021-Central Tax dated 29th August 2021 to extend the timelines for filing of an application for revocation of cancellation of registration to 30th September 2021, where the due date of filing of an application for revocation of cancellation of registration falls between 1st March 2020 to 31^st  August 2020. This extension is applicable for those cases where registrations have been canceled under clause (b) or clause (c) of sub-section (2) of section 29 of the said Act.

Extension of Timelines for Filing Applications for the Revocation of Cancellation of GST Registration

As mentioned above, the Central Board of Indirect Taxes and Customs (CBIC) has extended the timelines for filing applications for the revocation of cancellation of GST registration vide notification no. 34/2021-Central Tax dated August 29, 2021.

• The Timelines for filing of the application for revocation of cancellation of registration have been extended to September 30, 2021, where the due date of filing of the application for revocation of cancellation of registration falls between 01.03.2020 to 31.08.2021.
• CBIC also announced that the extension would be applicable only in those cases where registrations have been canceled under clause (b) or clause (c) of sub-section (2) of section 29 of the CGST Act.\

Know more about CBIC Extends Due Date of Various GST Compliance beyond 31st August 2021

CBIC Clarification on Extension of Timelines for Revocation of cancellation of Registration

CBIC clarified that the benefit of Notification No. 34/2021-Central Tax dated 29^th August 2021 is extended to all the cases where cancellation of registration has been done under clause (b) or clause (c) of sub-section (2) of section 29 of the CGST Ac, 2017 and where the due date of filing of an application for revocation of cancellation of registration falls between 1st March 2020 to 31st August 2021

• CBIC clarified that the benefit of notification would be applicable if the application for revocation of cancellation of registration is either pending with the proper officer or has already been rejected by the proper officer.
• CBIC also clarified that the benefit of notification would also be available in those cases which are pending with the appellate authority or which have been rejected by the appellate authority

Applications Covered under the Scope of the Notification dated August 29, 2021

Notification No. 34/2021-Central Tax dated 29th August 2021, related to the extension of time limit to apply for revocation of cancellation of registration would be applicable in the following manner:

• Application for revocation of cancellation of registration has not been filed by the taxpayer:
• Application for revocation or cancellation of registration has already been filed and which are pending with the proper officer
• Application for revocation or cancellation of registration was filed but was rejected by the proper officer and the taxpayer has not filed any appeal against the rejection
• Application for revocation of cancellation of registration was filed, the proper officer rejected the application, and appeal against the rejection order is pending before appellate authority
• Application for revocation or cancellation of registration was filed, the proper officer rejected the application and the appeal has been decided against the taxpayer

CBIC Clarification on sub-section (1) of section 30 of the CGST Act

Sub-section (1) of section 30 of the CGST Act

The proviso to sub-section (1) of section 30 of the CGST Act has been inserted with effect from 01.01.2021,  which provides for the extension of time for applying for revocation of cancellation of registration by 30 days by Additional/ Joint Commissioner and by another 30 days by the Commissioner. Doubts have been raised whether the Notification dated August 29, 2021, has extended the due date in respect of the initial period of 30 days for applying sub-section (1) of section 30 of the CGST Act or whether the due date of filing applications for revocation of registration can be extended further for the period of 60 days (30 + 30) by the Joint Commissioner/ Additional Commissioner/ Commissioner, beyond the extended date of 30.09.2021.

CBIC Clarification

CBIC  announces the following Clarification regarding sub-section (1) of section 30 of the CGST Act If the thirty days’ time limit falls between 1st March 2020 to 31st December 2020, there is no provision available to extend the time period of 30 days under section 30 of the CGST Act. For such cases, according to the Notification dated August 29, 2021, the time limit to apply for revocation of cancellation of registration stands extended up to 30th September 2021 only The time period of thirty days since the cancellation of registration has not lapsed as on 1st January 2021 or where the registration has been canceled on or after 1st January 2021, the time limit for applying for revocation of cancellation of registration shall stand extended:

• If the time period of 90 days (initial 30 days and extension of 30 + 30 days) since the cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021, without any further extension of time by Joint Commissioner/ Additional Commissioner/ Commissioner
• If the time period of 60 days (and not 90 days) since the cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021, with the extension of timelines by another 30 days beyond 30.09.2021 by the Commissioner, on being satisfied, as per proviso to sub-section (1) of section 30 of the CGST Act
• the time period of 30 days (and not 60 days or 90 days) since the cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021, with the extension of timelines by another 30 days beyond 30.09.2021 by the Joint/ Additional Commissioner and another 30 days by the Commissioner, on being satisfied, as per proviso to sub-section (1) of section 30 of the CGST Act.