A Comprehensive look on - Application for Revocation of Cancellation of Registration under GST

In GST there are ample grounds available with the officer for cancellation of registration. However, to enhance natural justice, an option was given to the assessee to apply to revoke such cancellation order.

In addition to the section and rules, the government has issued circulars and notifications regarding the application process. This article attempts to consolidate all such provisions in a comprehensive and simplified manner with an objective to assist the businesspeople:

Legal Provisions:

The Act:

Section 30 of the CGST Act,2017 covers the applicable provisions for revocation of cancellation of registration. As per section 30:

• If registration is cancelled by the proper officer on his own motion.
• A registered person may apply for revocation of cancellation of registration

Insertion of proviso:

A new proviso was inserted from 1st January 2021. The proviso provided two levels of extension for the timeline for filing the revocation application:

1. Extension of 30 days- by Additional or Joint Commissioner.
2. Further extension of 30 days- by Commissioner.

Applicable rules for revocation of registration:

1. Where the registration is cancelled due to non-filing of returns, revocation application would not be considered until all such returns are filed and applicable taxes are paid.
2. Further, If registration cancelled retrospectively, then unfiled return to be filed within 30 days from the date such revocation is allowed.

Applicable forms:

Manual filing of Application:

Please note that process of filing the revocation application on the portal is not yet functional. Therefore, CBIC issued circular no. 148/04/2021 regarding manual filing of the application. The circular states the following:

Recent Extension for filing of application:

The government recently issued notification 34/2021- Central Tax dated 29^th August 2021 wherein the the date of filing of application of revocation of registration has been extended upto 31^st September, 2021.

This extension is applicable to cases where the time limit of filing such application falls within 1-Mar-20 to 31^st Aug 2021. Further, the new due date is only applicable to cases where the registration is cancelled due to consecutive non filing of returns. (6 tax periods for regular tax payer and 3 tax periods for  composition scheme dealer)

This notification is simple but the complete revocation machinery is not. The notification fails to answer the following questions, e.g.,

1. Does the stage of application impacts the due date?
2. Can the registered person use both the extensions again?

The government issued the Circular no. 158/14/2021-GST dated 6^th September 2021, toprovide solution to such questions.

Circular no. 158/14/2021-GST dated 6^th September 2021

The circular answers the two questions stated above.

Does the stage of application impacts the due date?

Below table provides for the process to follow regarding the stage of the application for revocation:

Can the registered person use both the extensions again?

As discussed above, a proviso was inserted in section 30 granting exemptions of 30+30 days. Please note that this exemption was only applicable from 1.1.2021.

The circular allows extension post September 30^th, 2021 on a simple concept. Only the unused extension could be availed on the new date of 30^th September 2021.

If the person were to file the revocation application on 31^st August 2021, would they need to avail the extension facility given by the proviso? If yes, then it would be assumed that you have already exploited the said extension.

Following table could better explain the manner of utilization of extension with the new time limit:

Conclusion:
The revocation of cancellation of registration is a beneficial provision serving as a tool for better implementation of natural justice. The government is giving a change to the general public to correct any anomaly in their registration that led to registration and be compliant going forward. Please note that the extensions are allowed only after the permission is received from Add.Commissioner/Joint Commissioner or Commissioner. Therefore, it should be used as a last resort. All efforts should be made to apply for revocation before 30^th September 2021.