GST revocation refers to the process of reinstating a GST registration that has been cancelled by the tax authorities. It’s an application made by the taxpayer to get their GSTIN active again.
It’s important to distinguish between:
- GST Cancellation: This is when a GST registration is made inactive, either voluntarily by the taxpayer or by the tax officer.
- GST Revocation: This is the act of reversing a cancellation, specifically when the cancellation was initiated by the GST officer. If you voluntarily cancel your registration, you generally cannot revoke it; you would have to apply for a fresh registration if you want to start business again.
Why does the GST Officer Cancel Registration (leading to a need for Revocation)?
A GST officer can cancel a registration suo-moto (on their own motion) for various reasons, including but not limited to
Non-filing of Returns
- For regular taxpayers: Failure to file GSTR-3B for a continuous period of six months.
- For Composition taxpayers: Failure to file CMP-08 for three consecutive tax periods (quarters).
Business Not Commenced
If a person takes voluntary registration but does not commence business within six months from the date of registration.
Fraud/Misrepresentation
If the registration was obtained by means of fraud, willful misstatement, or suppression of facts.
Violation of Act/Rules
Any contravention of the provisions of the GST Act or Rules, such as:
- Issuing invoices without actual supply of goods/services.
- Claiming ITC fraudulently.
- Not conducting business from the declared place of business.
- Failure to pay tax, interest, or penalty to the government within three months from the due date.
Before cancelling a registration, the proper officer typically issues a show-cause notice (Form GST REG-17), giving the taxpayer an opportunity to explain why their registration should not be cancelled.
Who can Apply for Revocation?
Only a registered person whose GST registration has been cancelled by the proper officer on their own motion can apply for revocation.
Time Limit for Applying for Revocation (Form GST REG-21):
The application for revocation of cancellation (in FORM GST REG-21) must be filed within a specific timeframe:
Standard Time Limit
Within 90 days from the date of service of the order of cancellation of registration.
Extension Provisions
- This 90-day period can be further extended in certain cases:
- By the Additional Commissioner or Joint Commissioner for an additional period not exceeding 30 days.
- By the Commissioner for a further period not exceeding 30 days, beyond the extension granted by the Additional/Joint Commissioner.
- This means, in total, the maximum period for applying for revocation can be up to 150 days (90 + 30 + 30) from the date of the cancellation order, provided sufficient cause is shown for the delay.
Special Amnesty/Extensions
Historically, the government has provided special amnesty schemes or extensions to this time limit, especially during challenging periods like the COVID-19 pandemic, for certain categories of taxpayers. It’s crucial to check the latest notifications.
Conditions for Revocation of Cancellation
Before applying for revocation, the taxpayer must fulfill certain conditions:
File All Pending Returns
This is the most crucial requirement. If the cancellation was due to non-filing of returns, the application for revocation can only be submitted after all pending GST returns (GSTR-1, GSTR-3B, etc.) from the date of cancellation up to the date of filing the revocation application, are furnished.
Pay All Dues
Any amount due as tax, interest, penalty, and late fees for the period of default must be paid.
Provide Valid Reason
The application must state valid and sufficient reasons for the delay in compliance or for seeking the revocation.
Process for GST Revocation
The process is entirely online through the GST Portal:
Login to GST Portal
Log in using your GSTIN (even if inactive), username, and password.
Navigate to Revocation Application
Go to “Services” > “Registration” > “Application for Revocation of Cancellation”.
Fill FORM GST REG-21
- Select the GSTIN for which you want to apply for revocation.
- Provide the “Reason for revocation of cancellation.” This is where you explain why your registration should be reinstated (e.g., “Due to severe financial hardship, could not file returns on time. All pending returns now filed and taxes paid.”).
- Upload any supporting documents that justify your reason (e.g., proof of payment, bank statements, medical certificates if personal issues caused delay, etc.).
Aadhaar Authentication
As of January 1, 2022, Aadhaar authentication became mandatory for applying for revocation of cancelled GST registration under CGST Rule 23 in REG-21.
Submit Application
Select the authorized signatory and submit the application using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code). An ARN (Application Reference Number) will be generated.
Officer’s Review and Show-Cause Notice
- The proper officer will review your application.
- If they are not satisfied with the reasons provided or require further clarification, they may issue a show-cause notice (Form GST REG-23), asking for more information or a justification as to why the application should not be rejected.
Taxpayer’s Reply
You must furnish a reply in Form GST REG-24 within 7 working days from the date of service of the show-cause notice.
Officer’s Decision
- Approval: If the proper officer is satisfied (either with the initial application or after receiving your reply), they will issue an order for revocation of cancellation in FORM GST REG-22 within 30 days of receiving your application (or your clarification in REG-24). Your GSTIN status will then change from “Inactive” to “Active.”
- Rejection: If the officer is not satisfied, they will issue an order rejecting the application for revocation in FORM GST REG-05, providing reasons for the rejection.
Important Considerations
Timeliness is Key
Filing the revocation application within the prescribed time limit is crucial. Delays can lead to rejection and may require seeking higher authority intervention or even High Court relief in extreme cases.
Complete Compliance
Ensure all pending returns are filed and all tax, interest, and late fee liabilities are cleared before applying. An application for revocation will not be processed if these prerequisites are not met.
Accuracy
Provide accurate and truthful information and supporting documents.
Post-Revocation Compliance
Once your GSTIN is reinstated, ensure regular and timely filing of all future GST returns to avoid further cancellation.
Final Return (GSTR-10)
If your registration remains cancelled (i.e., revocation application is rejected or not filed), you will eventually need to file GSTR-10 (Final Return) to formally close your GST obligations.