Revocation of GST Registration: Restoring GST and its Compliance

  • Setindiabiz Team
  • July 24, 2023

Revocation of GST Registration: Restoring GST and its Compliance

Revocation of GST Registration: Restoring GST and its Compliance
In the Goods and Services Tax (GST) regime, revocation of cancellation order of registration is a crucial process that allows a taxpayer to reinstate their GST registration after it has been cancelled. Revocation of GST cancellation order means restore GST registration or attain GST active status. GST registration can be cancelled by the tax authorities due to various reasons, including non-compliance, non-filing of returns, or violations of GST rules. Once a registration is cancelled, the taxpayer loses their status as a registered GST entity, and they cannot collect GST from customers or claim input tax credits. The Order for Cancellation of Registration is passed in FORM GST REG-19.
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Impact of Cancellation on Business Operations

The cancellation of GST registration can significantly impact a business. Without a valid registration, the business cannot charge GST on supplies, resulting in potential revenue loss. Moreover, the loss of input tax credit benefits can increase costs and affect profitability. Additionally, cancellation may lead to reputational damage, as customers may perceive the business as non-compliant.

Loss of Revenue

With the cancellation of GST registration, a business loses its ability to charge GST on its supplies or services. This inability can result in a decrease in revenue, as the cost price of goods or services might increase due to the inability to claim input tax credits, leading to reduced profit margins. Businesses would have to absorb the tax costs, which could lead to financial strain.

Increased Operating Costs

GST registration allows businesses to claim input tax credit benefits, reducing their net outflow of cash towards taxes. However, upon cancellation, the business loses these benefits, resulting in an increase in overall operating costs. This escalation of costs can erode profitability, potentially causing financial instability.

Reputational Damage

Apart from the direct financial implications, the cancellation of GST registration can also have non-tangible impacts on a business. The cancellation could be perceived by customers, suppliers, and stakeholders as a sign of the business’s non-compliance with legal requirements. This perception can harm the business’s reputation, potentially leading to a loss of business opportunities, reduced customer trust, and challenges in forming new partnerships or collaborations.

Regulatory Compliance Issues

With GST registration cancellation, businesses may face complications related to regulatory compliance. They might need to undergo further scrutiny and audits from tax authorities, leading to additional time and resource investments.

Eligibility for Revocation of Cancelled GST Registration:

Application for Revocation

As a preliminary condition for revocation, the taxpayer must submit an application form seeking reinstatement of their GST registration. This application must strictly adhere to the prescribed format outlined by the tax authorities, and all information requested must be provided. Timing is crucial in this process, as the application must be filed within a specific time frame from the date of cancellation. Late applications may not be accepted and could delay the reinstatement process.

Reason for Cancellation

The taxpayer has the onus to rectify the reason that initially led to the cancellation of their GST registration. For instance, if the registration was cancelled due to non-filing of returns, it is essential for the taxpayer to file all the pending returns before applying for revocation. This action is an assertion of the taxpayer’s commitment to comply with GST rules and regulations going forward.

Outstanding Dues

Prior to applying for revocation, the taxpayer must ensure they have no outstanding tax liabilities, including unpaid tax, interest, and penalties that might have contributed to the cancellation of the registration. Clearing all dues is a clear indication of the taxpayer’s willingness to rectify past missteps and reassures the tax authorities of their commitment to maintaining compliance.

Compliance with Rules

A key condition for the reinstatement of GST registration is that the taxpayer should be in full compliance with all the GST rules and regulations. This not only includes resolving the specific issue that led to the cancellation but also addressing any other potential problems that the tax authorities might have identified. Full compliance reaffirms the taxpayer’s commitment to follow the law and ensures smooth operations without any further hiccups.

Process of Revocation of Cancelled GST Registration

Filing of Application

The initial step in the revocation process is filing the application. Taxpayers seeking to restore their GST registration must submit an electronic application through the official GST portal. The designated form for this is FORM GST REG-21. In this application, taxpayers are required to furnish all the essential details, which include their GST identification number, business details, and the primary reasons for seeking the revocation. It is crucial that all information is accurately and comprehensively provided to prevent potential complications or delays in the process.

Verification by Tax Authorities

Once the application has been successfully submitted, it moves to the verification stage. Here, the tax authorities meticulously examine the details furnished in the application. This examination involves verifying the taxpayer’s compliance with the requirements specified in the GST Act, such as checking for any outstanding tax dues, assessing the validity of the reason cited for revocation, and ensuring the taxpayer has resolved all issues that led to the initial cancellation. This process may also involve corresponding with the taxpayer for additional information or clarification if needed.

Approval of Revocation

If the tax authorities find the application in order and are satisfied with the taxpayer’s compliance, they move to the next stage – approval of the revocation. This means the cancellation order of the GST registration is revoked, and the taxpayer’s GST status is reinstated. The official document representing this decision is the Order for revocation of cancellation of registration, passed in FORM GST REG-22. This form is issued to the taxpayer as confirmation of the restoration of their GST status.

Rejection of Application

In cases where the tax authorities discover discrepancies in the application or instances of non-compliance during the verification process, the application for revocation may be rejected. This could be due to reasons such as unresolved tax dues, a failure to address the issue that led to the cancellation, or providing false or inaccurate information in the application. In such situations, the taxpayer is duly informed about the rejection along with the specific reasons for the denial, allowing them to rectify the errors and possibly reapply at a later date.

How Setindiabiz Help in GST Registration Revocation

Setindibiz is a prominent business consultancy firm with an exceptional reputation for assisting businesses across a spectrum of their needs, one of which is the restoration of cancelled GST registrations. Navigating the labyrinth of GST regulations can be a daunting task for many businesses. Recognizing this, we are dedicated to providing not only expert guidance but also actionable solutions to help you restore your cancelled GST registration swiftly and efficiently.

Detailed Consultation

The world of taxes is intricate. Our knowledgeable tax professionals provide comprehensive advice, breaking down the complexity of your GST registration cancellation and guiding you through necessary rectification measures.

Comprehensive Compliance Audit

Our team delves into your GST compliance status. We identify any outstanding dues or non-compliance issues leading to cancellation, offering strategies to correct these discrepancies.

Filing Assistance

Correcting non-compliances is only half the battle. Our team aids you in preparing and filing the revocation application for GST registration cancellation, ensuring it aligns with all required regulations, enhancing the chances of a successful restoration.

Interaction with Tax Authorities

Dealing with tax authorities can be perplexing. We act as your liaison, providing all essential documentation and information, resolving any queries, thereby sparing you from intricate correspondence.

Continual Support

The revocation of your GST registration cancellation is not the end of our commitment. SetindiBiz continues to support your business with services like routine GST return filing, GST audit assistance, and updates on GST law changes.
At Setindibiz, we believe in offering tailored solutions that allow you to concentrate on your primary business functions while we handle the complexities of GST compliance. Our objective is to make your journey towards GST compliance as seamless and hassle-free as possible.
Maintaining regular compliance and adhering to GST rules are advisable for businesses to avoid the need for revocation. Revocation of GST registration provides a lifeline to businesses that have faced cancellations, offering them an opportunity to rectify their mistakes and become compliant with the GST Act once again. However, it is crucial for taxpayers to diligently follow the revocation process and provide all required documents and information to support their application to avoid penalties and legal consequences.Revocation of GST registration provides a lifeline to businesses that have faced cancellations and offers them a chance to rectify their mistakes and become compliant with the GST Act once again.


Q1: What does revocation of GST registration mean?

Revocation of GST registration means restoring or reinstating a previously cancelled GST registration. It allows a taxpayer to regain their GST active status after cancellation due to reasons like non-compliance or non-filing of returns.

Q2: Why is GST registration cancelled?

GST registration can be cancelled by tax authorities due to several reasons such as non-compliance with GST rules, non-filing of tax returns, or violation of any conditions prescribed under the GST Act.

Q3: What is the impact of GST registration cancellation on a business?

Cancellation of GST registration can impact a business in several ways. It prevents the business from charging GST on supplies, leading to potential revenue loss. It also results in the loss of input tax credit benefits, increased operating costs, potential reputational damage, and regulatory compliance issues.

Q4: What is FORM GST REG-19, and why is it significant?

FORM GST REG-19 is the official document issued by the tax authorities to cancel a GST registration. It signifies the termination of a taxpayer’s GST active status and restricts them from collecting GST or claiming input tax credits.

Q5: How does GST registration cancellation affect a business's profitability and reputation?

Cancellation of GST registration can affect profitability due to loss of revenue and increased operating costs. It also affects the business’s reputation as it could be perceived as non-compliant with legal requirements, potentially leading to a loss of customer trust and business opportunities.

Q6: What are the eligibility criteria for the revocation of cancelled GST registration?

Eligibility criteria include filing an application for revocation within a specified time limit, rectifying the reason for cancellation, clearing any outstanding tax liabilities, and demonstrating compliance with all GST rules and regulations.

Q7: What is the process to revoke a cancelled GST registration?

The process involves filing an application electronically in FORM GST REG-21 on the GST portal, verification of the application by tax authorities, approval of revocation upon satisfying compliance, or rejection of the application in case of discrepancies.

Q8: What is FORM GST REG-21, and why is it important in the GST revocation process?

FORM GST REG-21 is the official form used to apply for the revocation of a cancelled GST registration. It is essential as it initiates the process of revocation, enabling the tax authorities to review and verify the application.

Q9: How do tax authorities verify a GST revocation application?

The tax authorities review the application, check the taxpayer’s compliance with GST requirements, validate the reasons cited for revocation, and ensure all issues that led to the initial cancellation have been resolved.

Q10: What happens after a GST revocation application is approved?

Once approved, the tax authorities issue an Order for revocation of cancellation of registration in FORM GST REG-22. This reinstates the taxpayer’s GST status, allowing them to resume business under the GST framework.

Q11: What are the reasons for the rejection of a GST revocation application?

A GST revocation application may be rejected due to reasons like unresolved tax dues, failure to address the issue leading to cancellation, or providing false or inaccurate information in the application.

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