How to Revoke GST Cancellation: Step-by-Step Guide to Reactivate Your Registration
Overview : As the name implies, GST Cancellation is the condition of cancelling GST Registration. There may be various reasons behind GST cancellation, including business closure, non-applicability of GST rules, and many more. Sometimes, businesses may need to revoke their cancelled or inactive GST later. In this post, you will comprehensively understand the essential aspects of revocation of GST Cancellation including step-by-step process and restore it quickly.
Looking to restore your cancelled GST registration? Then, this comprehensive guide is here to help you. This guide explains the necessary aspects of GST cancellation revocation, including eligibility, required documents, and the stepwise process to apply through the GST portal. Don't forget to settle all the outstanding liabilities and file all pending returns to increase your chances of success.
Key Points
- GST cancellation renders the registration inactive; you cannot collect tax, issue compliant invoices, or claim input tax credits.
- Eligibility for revocation requires compliance with GST rules and settling all dues before applying, usually within 90 days of cancellation.
- Improper documentation and missed deadlines are common pitfalls during the revocation process, so be thorough and, if needed, go for professional help.
What is GST Cancellation?
GST cancellation is the cancellation of GST registration. This results in the deactivation of the Goods and Services Tax Identification Number (GSTIN). This can happen for various reasons, like the closure of a business, non-applicability of GST rules, or a request from a tax officer. When a GST registration is cancelled, you are notified, your status is updated to ‘Inactive’, and you cannot file returns or upload invoices.
This deactivation can be disastrous for your business. Without active GST registration you cannot collect GST, issue GST compliant invoices or claim input tax credits on your purchases. This disrupts your business and can lead to heavy penalties if you continue to operate without resolving the issue.
However, if the cancellation was done by tax authorities without due process, you might be eligible for revocation. Understanding GST cancellation is the first step in the process of revoking of GST cancellation. Knowing why your GST registration was cancelled, and the immediate impact can help you prepare for the steps to reactivate your registration.
Eligibility to Revoke GST Cancellation
If you are planning to revoke your cancelled GST registration, you must know the eligibility criteria. First, the valid reasons and necessary documents must be provided to reverse a cancellation done by tax officials. The reasons for seeking revocation should be well documented and mentioned in your application. Eligibility for revocation requires you to show compliance with GST rules before cancellation. This means settling all due taxes and penalties before applying. If cancellation was due to non-filing of returns, those returns must be filed and all dues cleared before applying for revocation. Following these criteria will increase your chances of successful revocation.
When to Apply for GST Cancellation Revocation?
The time frame of your revocation application is important. Usually a revocation application should be filed within 90 days of cancellation order. But it’s better to act sooner; ideally within 30 days of receiving the cancellation notice. Ensure all pending returns and tax liabilities are settled before applying. Revocation applications are accepted only if original cancellation was not due to non-filing of returns. Also registration should not be inactive for more than 3 years. Missing these deadlines can result in automatic rejection.
Documents Required for Revocation Application
Similar to other legal processes, documents play a crucial role in filing application for revocation of GST cancellation. You need to provide several documents to support your application. Those documents list is are below:
- Copy of the Tax Authority’s Cancellation Order
- Proof of Identification
- Proof of Address for Address Verification
- Copy of Evidence of file Returns
These documents show compliance with GST rules. Improper, incorrect or insufficient documentation can cause delay or sometimes rejection of application. Therefore, it's necessary to exercise caution while preparing the documents and filing applications with the necessary details.
Step-by-Step Procedure to Revoke GST Cancellation
Reactivating a cancelled GST registration generally involves multiple steps. GST Cancellation revocation process begins with logging into the GST portal to apply. The process includes accessing the GST portal, filling up Form GST REG-21 and submitting the required documents to the GST authorities. Following this structured process ensures all requirements are met. The crucial steps for GST cancellation revocation process goes as below;
Accessing the GST Portal
Login to the GST portal with your username and password. Go to the ‘Services’ tab, click on ‘User Services’, and find the ‘GST Revocation’ option. Click on the ‘Application for Revocation of Cancelled Registration’ to access the form. Ensure your browser is compatible with the GST Portal and keep your credentials safe.
Filling up Form GST REG-21
Form GST REG-21 is used when GST registration was cancelled by an officer. Enter your GSTIN and reason for request in the form. Accurate and complete information is a must to avoid complications and rejection.
Submitting Supporting Documents
Upload the required supporting documents adhering to the GST Rules. Double check that the documents are prepared in the prescribed format.
Consequences of Not Revoking GST Cancellation
Non-revocation of a cancelled GST Registration can lead to serious consequences. Tax authorities may slap heavy penalties. Businesses lose the right to claim input tax credits, and profits take a hit. Operating without active GST registration is illegal and can lead to more penalties.
The inability to issue GST invoices and loss of credibility can disrupt operations beyond financial impact. Ongoing cancellation can damage your business’s reputation and erode stakeholder trust. Addressing GST cancellation promptly helps avoid such adverse outcomes.
Common Mistakes to Avoid During GST Cancellation Revocation Process
Many taxpayers commit mistakes during the revocation process. One common error is submitting incomplete documentation which leads to delays in the completion of the process. Ensure all required documents like Form GST REG-21 and supporting evidence are included.
Another common mistake is missing the deadlines for filing applications. This can result in permanent cancellation of your GST registration. Seeking professional assistance can help walk you through the complexity and help avoid mistakes that commonly take place while the revocation of canceled GST.
Post-Reactivation Compliance
Compliance with GST rules is essential post-reactivation. Regular and accurate GST returns filing is necessary to avoid future cancellations and penalties. Accurate record of sales, purchases and claim of input tax credit is must for ongoing compliance. Non-compliance can lead to heavy penalties and loss of input tax credits and increase tax liability. Tax professionals can help businesses understand and implement effective compliance strategies. Periodic review of compliance practices helps to stay aligned with GST rules.
Why opt for Expert Assistance for GST Cancellation Revocation Process?
Professional help can reduce the stress of the revocation process. Opting for expert services can increase your chances of success by guiding you through each step, gathering documents, and submitting applications. Using professional services by Setindiabiz also helps in ensuring compliance and avoiding future cancellations.
Conclusion
Revoking a cancelled GST registration is a multi-step process that requires attention to detail and timely action. From understanding the reasons for cancellation to submitting complete documentation and avoiding common mistakes, each step is crucial for successful revocation of your GST Cancellation. Compliance post-reactivation is equally important to ensure business continuity and avoid future issues.Follow this guide and seek professional help when needed to navigate the revocation process smoothly and effectively. Timely and accurate revocation applications will help you to continue business and maintain credibility.
FAQ's
You need to file Form GST REG-21 within 30 days of cancellation notice as restoration is only applicable if registration was cancelled by the authority. Before that make sure that all pending returns are filed and penalties paid to facilitate the reactivation process.
Revocation in GST means cancellation of cancellation of a taxpayer’s GST registration and thereby validity of GST registration is restored. This allows the taxpayer to continue to have GST registration which was cancelled earlier.
You cannot appeal for revocation of cancellation in GST after 180 days, as the time limit for applying is 90 days from the cancellation order. Delaying beyond this period may cause you to lose the chance to reinstate the registration.
To cancel your GST cancellation log in to the GST portal, go to ‘Services’ > ‘User Services’ > ‘View My Submissions’ and click on the withdrawal button for your cancellation application. Ensure all details are meticulously reviewed and correct errors, if any, before finalizing the withdrawal.
GST cancellation is the cancellation of a business’s GST registration which deactivates the GSTIN and disallowing filing of returns or uploading of invoices. This effectively takes the business out of GST.
Author Bio
Editorial Team | in
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.