REVOCATION OF CANCELLATION APPLICATION

[Charan N]

Der Sir/Madam,

I applied revocation of cancellation application for one my client and the same is showing under pending for processing and allotted to Center. We contacted concerned Jurisdictional officer and he is saying that he is not getting anything regarding revocation to process the application. I want to know whether revocation process started and any applications approved or processed by the department.

I am in very serious situation and want to revoke the application ASAP

Thanking you in advance

[KASTURI SETHI]

First action is to be taken by Jurisdictional GST Officer (Range Officer or Divisional Officer) . On his recommendation Common Portal will act further. He may be requested to play active role.The solution is to be arrived at by both (Range Officer ad Officers of Common Portal System). Without report from the Range Office or Division Office, Common Portal will not act.

[DR.MARIAPPAN GOVINDARAJAN]

I think that Shri Sethi has suitable advised you.

[Kishan Barai]

According to me, If the reason for registration is marked as "Voluntary Registration" then it could not be cancelled before 1 year.

[DR.MARIAPPAN GOVINDARAJAN]

What Sri Kiran says it correct if registration is volunteer.

[KASTURI SETHI]

Sh.Kishan Barai Sir is totally correct. Here is relevant Board's instruction.

Extract of Board's Flyer no.1 dated 1.1.18

Cancellation of Registration

The GST law provides for two scenarios where cancellation of registration can take place; the one when the taxable person no more requires it (voluntary cancellation), and another when the proper officer considers the registration liable for cancellation in view of certain specified defaults (Suo motu cancellation) like when the registrant is not doing business from the registered place of business or if he issues tax invoice without making the supply of goods or services. The taxable person desirous of cancellation of Registration will apply on the common portal within 30 days of event warranting cancellation. He will also declare in the application the stock held on the date with effect from which he seeks cancellation. He will also work out and declare the quantum of dues of payments and credit reversal, and the particulars of payments made towards discharge of such liabilities. In case of voluntary registration (taken despite not being liable for obtaining registration), no cancellation is allowed until expiry of one year from the effective date of registration. If satisfied, the proper officer has to cancel the registration within 30 days from the date of application or the date of reply to notice (if issued, when rejection is concluded by the officer).

But now registration stands cancelled and it has to by restored on Common Portal System with the recommendation of jurisdictional GST Officers.

[Kishan Barai]

Thank you very much sir for your appreciation. 

[Charan N]

Thank you one and all for your valuable suggestions.

[Pavan Mahulkar]

As per proviso to rule 20

"Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration."

[The following proviso was Omitted vide Notf no.03/2018-CT dt 23.01.2018]

So now the voluntarily registered person can apply for cancellation of RC before the completion of 1 year

AI Summary

Revocation of GST registration cancellation requires jurisdictional officer recommendation, then the common portal processes restoration. Revocation of a cancelled GST registration requires the recommendation and report of the jurisdictional GST officer; the Common Portal will act to process or restore registration only after receiving that officer's report. Previously a proviso prevented voluntary registrants from seeking cancellation within one year, but that restriction has been omitted, allowing earlier cancellation applications by voluntarily registered persons.