Registration under the Goods and Services Tax is applicable to people and businesses with an annual turnover of Rs. 20 Lakhs or more. GST Registration can be cancelled under two circumstances – either by voluntary cancellation by the taxpayer due to reasons such as closure of business, migration, renunciation of registration, etc. or by the Tax Authorities on grounds such as violation of law, failure to furnish records and documents, omission in annual return filings.In order to re-activate cancelled GST Registration, a person is required to apply for GST registration re-activation within 30 days of cancellation. There are different methods to Re-active cancelled GST registration depending upon the nature of cancellation –
Voluntary Cancellation
For voluntary cancellation of GST registration, the taxpayer must file an application in form GST REG – 16. The form should be accompanied by the details of the business, capital assets, stock and machinery, inputs and implements, goods and other items kept and used in the name of the business. The assesses must provide personal details such as PAN, AADHAR and GSTIN Number. After making the application, the appropriate Tax Official scrutinize and examines the application and, within a period of 30 days, issues a cancellation certificate in GST REG -19.
Cancellation by Statutory Authorities
GST registration can be cancelled by statutory authorities. As, the Tax Authorities have the power to suspend or cancel the GST registration of an entity if it knows or has reasons to believe that the entity –
- Is Not conducting business at the registered office.
- Is issuing bogus invoices or bills against which no actual supply of goods and services is being made.
- The asses see has failed to file form annual /monthly/quarterly returns with the GST Authority.
- Is Availing input tax credit on non-taxable or zero-rated supply of goods and services or does not have a valid tax license for ITC.
- The assesses have died or become mentally unfit.
- The business has demerged or been acquired, or there have been some major changes in the internal structure.
If the taxpayer is found to be indulging in these practices and/or any other malpractices prohibited under the GST Act or any other law in force, the Tax Officer sends a show-cause notice to the taxpayer, asking for clarifications on the queries and contentions of the registration to which the taxpayer must reply within seven days. If the Officer is satisfied with the replies to the notice, they shall not proceed with the cancellation of GST Registration. However, if the Officer observes the reply to be unsatisfactory, they can issue a notice of cancellation of GST Registration. Thereafter, the taxpayer has to make an application to Re-activate cancelled GST registration in order to continue using the GSTIN number.
Revocation of Cancelled Registration
The process to Re-activate cancelled GST registration by the taxpayer is known as revocation of cancelled registration. Such application of revocation should be filed within 30 days. If an assess wishes to re-activate GST number, they should make an application to Re-activate cancelled GST registration in the following manner-
- The assessee should visit the GST website and log in on the portal. In the Services Menu, select for application for revocation for the cancelled registration option.
- The assessee must file an online application for revocation of cancellation in form GST REG-21 within 30 days of receiving notice of cancellation of GST Registration.
- If the Tax Officer is satisfied, they can reverse the cancellation within a period of 30 days of receiving the application.
- If the Tax Officer believes that the reason provided in the revocation application is not sufficient or scurrilous, they can choose to reject the application and GST registration cancellation is not revoked.
Conclusion
If you have cancelled or got your GST registration cancelled due to any reason, the Re-activating GST number is a challenge. You are required to go over all the processes, including making an application to the tax authority and seeking their approval to obtain a revocation certificate.
Corpbiz can help you with the formalities related to the application process before the concerned authorities. Our dedicated tax team is strategically placed to help you with all your regulatory requirements and reporting obligations that are required to be discharged in order to Re-activate cancelled GST registration.
Frequently Asked Questions (FAQs)
Cancellation of GST license implies that the taxpayer shall no longer be registered with the GST regime, nor would be authorized or required to pay, collect, or remit GST to any other person or entity or claim the input tax credit.
GST License is cancelled either by Voluntary cancellation by the taxpayer or an order of cancellation by the Tax Authorities.
To Re-activate cancelled GST registration, the taxpayer must apply for GST registration re-activation within a period of 30 days from the date of final order.
A GST Registration can be cancelled by the tax authorities if the is not conducting business at the registered office, issuing bogus invoices or bills against which no actual supply of goods and services is being made, the assessee has failed to file form annual /monthly/quarterly returns with the GST Authority, the assesses have died or become mentally unfit, the business has demerged, been acquired, or there has been some major changes in the internal structure, or if the entity is Availing input tax credit on non-taxable or zero-rated supply of goods and services or does not have a valid tax license for ITC.
An assesse can make an application on the GST website for the revocation of a cancelled license.
In order to make an application for the revocation of a cancelled GST registration, visit the GST Portal at www.gst.gov.in, log in with your credentials, and navigate to the “Services” section on the GST Dashboard. Under services, select “Register,” and proceed to apply for the revocation of a cancelled registration. Fill out the GST Reg -01 form, providing the reason for revocation and attaching any necessary supporting documentation. Submit the application, and upon review by tax authorities, if deemed valid, an order for revocation of the cancelled registration will be issued.
Revocation of a cancelled registration cannot be requested by UIN Holders (i.e., UN Bodies, Embassies, and Other Notified Persons), GST Practitioners, or in the event that the taxpayer or the taxpayer’s legal heirs have requested the cancellation of the registration.
Companies or individuals that are looking to re-activate cancelled GST registration must provide supporting documentation, including financial statements, audit reports, and bank statements. It is imperative that these documents match the particular justifications stated in the application for successfully Re-activating GST number.
Professionals at Corbiz comprise of dedicated and adept professionals who are skilled in matters related to GST and Tax registration, filing, compliances, and revocation of cancelled GST registration. You can rely on our services to caterto satisfy GST registration re-activation services to you.
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