Last updated: December 17th, 2019 5:21 PM

Scheme for Revocation of Cancellation of GST Registration

The Central Board of Indirect Taxes and Customs (CBDT), vide the Central Goods and Services Tax (Fifth Removal of Difficulties) Order 2019, has extended the time limit for filing the application for revocation of cancellation of GST registration for specific taxpayers. The update is particularly meant for the class of persons for whom the cancellation orders were passed up to 31st March 2019. In this article, we look at the scheme for revocation of cancellation of GST registration in detail.

Cancellation and Application for Revocation

The Government had earlier clarified that once a GST registration is cancelled, the taxpayer will not be allowed to obtain a new GST registration without applying for revocation of the earlier GST cancellation. Recently, the GST registration of many taxpayers was cancelled under Section 29(2) of the Central Goods and Services Tax Act, 2017 for the non-furnishing of returns in Form GSTR 3B or Form GSTR 4.  As these people weren’t able to apply for the revocation within 30 days of the cancellation, a Removal of Difficulty Order (RoD) has been issued to enable them in filing an application for revocation or cancellation of registration within the 22^nd of July 2019. It is noteworthy that the provisions of this notification are only applicable to taxpayers whose registrations have been cancelled on or before 31^st March 2019, and who haven’t responded to the notices issued to them.

Non-permissibility

The application for revocation cannot be filed if the registration has been cancelled owing to failure in furnishing returns. Given this reason, taxpayers must file the tax returns that are overdue until the date of such cancellation before going on to file the application for revocation. Furthermore, if the registration has been cancelled with retrospective effect, the common portal doesn’t facilitate the furnishing of application for revocation after the effective date of cancellation. Considering this, a provision has been added to facilitate the filing of an application for revocation of cancellation of registration, provided that all the returns from the period of the effective date of cancellation of registration till the order of revocation is filed within thirty days from the date of order of such revocation.

Reasons for Cancellation of Registration

The authorized personnel may cancel the registration if the registered person:

• Has contravened any provisions of the Act or the rules made thereunder.
• Has failed to furnish returns for three consecutive tax periods (for taxpayers remitting tax under Section 10).
• Hasn’t furnished any returns for a continuous period of six months (for others).
• Hasn’t commenced business within six months from the date of registration.
• Has completed his registration by means of fraud, willful misstatement or suppression of facts.

The concerned officer cannot cancel the registration without providing the supposed defaulter with an opportunity of being heard.

Service of Notice

The concerned taxpayer would be served a notice under Section 169(1) of the CGST Act, which is related to his/her opportunity of being heard. This could be addressed to the taxpayer by either sending a communication to the email address of the taxpayer or through the common portal. To reiterate, the provisions under this notification is applicable to taxpayers whose registration has been cancelled on or before 31^st March 2019, and who haven’t responded to the notices issued to them. The official order is attached herewith for your reference: