GST Registration Cancellation: Issue and Solution

 

GST registration cancellation is one of the most chronicle issue under GST as it disrupts your business continuity. It equally affects the seamless flow of credit under GST.

If you find your GST registration cancelled under Section 29(2) then what is the remedy? Let’s understand that.

One needs to understand section 29 of the CGST Act 2017 and the Delhi GST Act 2017, and how to effectively apply for revocation under Section 30.

S.29: When Can GST Registration Be Cancelled?

GST laws specify several scenarios under which a registration might be cancelled, including but not limited to the discontinuation or closure of a business, a significant change in business structure, or failing to comply with rules.

Particularly, Section 29(2) highlights cancellation by tax authorities due to reasons like:

– discontinuance or closure of business
– transfer of business due to amalgamation
– demerger
– sale
– lease
– any other pertinent reason
– a change in the constitution of the business
– the taxpayer is no longer liable to be registered under GST.

Here is a Step-By-Step Guide to Revocation of GST Registration Under Section 30:

Timely Application: Submit a revocation application within 30 days from receiving the cancellation notice, using FORM GST REG-21 on the GST portal.

Compliance First: Clear any pending returns and settle dues (taxes, interest, penalties) before applying. This shows your commitment to compliance.

Reason for Non-Compliance: Clearly state why you couldn’t comply initially. Whether it was due to health issues, natural disasters, or any valid reason, make it clear in your application.

Awaiting the Decision: Post-application, the GST officer will decide within 30 days whether to revoke the cancellation or not. If your application is rejected, you’ll be informed about the reasons, and you can appeal this decision.

Where can I apply for revocation of cancelled registration?
Application for revocation of cancelled registration can be filed on the GST Portal, after logging in.
The path is Services > Registration > Application for Revocation of Cancelled Registration.

You can login using your earlier login credentials (i.e., credentials using which you were logging into the GST Portal earlier).