Revocation of Cancellation of GST Registration: GST Restoration & Compliance

  • Setindiabiz Team
  • May 18, 2024
Revocation of GST Registration: Restoring GST and its Compliance
Revocation of GST Registration: Restoring GST and its Compliance

This detailed blog on the Revocation of cancellation of GST Registration discusses its viable reasons, consequences, and procedural aspects. It serves as the perfect guide to GST Restoration and ensures complete compliance with GST laws in India.

The revocation of cancellation of GST registration is a strategic move by businesses aiming to reinstate their compliance with Goods and Services Tax regulations. This procedure involves the submission of a prescribed application addressing the specific reasons for cancellation and a complete set of documents. Adherence to procedural aspects is crucial, for ensuring legal compliance with GST Laws and avoiding penalties imposed due to non-compliance. So, let’s dig deeper into the GST cancellation revocation process and understand the intricacies of GST cancellation revocation to the fullest extent.

GST Cancellation Revocation: A Brief Overview

Revoking the cancellation of GST registration is a pivotal process for businesses seeking to restore compliance. Understanding why the cancellation occurred, whether due to compliance lapses, voluntary decisions, or specific regulatory scenarios, sets the center stage for strategic revocation. A clear knowledge of the reasons and consequences helps businesses comply with the regulations better, and develop operational efficacy under the GST framework.

Reasons for Revocation of Cancellation of GST Registration

  1. Rectification of Compliance Issues: Revocation becomes necessary when businesses rectify compliance shortcomings, such as the timely filing of returns or addressing other regulatory obligations.
  2. Reversal of Voluntary Cancellation Decisions: In some cases, businesses may opt for voluntary cancellation but later decide to reverse this decision, often prompted by changes in their operational or strategic considerations.
  3. Addressing Specific Scenarios: Revocation may be pursued to address specific scenarios outlined in the GST framework, such as changes in business structure, ownership, or other factors influencing the initial cancellation.

Consequences of Revocation of Cancellation of GST Registration

  1. Resumption of GST-Compliant Operations: The primary consequence is the ability to resume GST-compliant operations, allowing businesses to legally collect and remit Goods and Services Tax.
  2. Restoration of Input Tax Credits: Revocation enables businesses to reclaim the privilege of claiming input tax credits, contributing to financial recovery and reducing operational costs.
  3. Mitigation of Financial and Operational Risks: Successful revocation safeguards businesses from the financial and operational risks associated with prolonged GST cancellation. It provides a crucial opportunity to stabilize and strengthen the overall business position.

Process for Revocation of Cancellation of GST Registration

The GST cancellation revocation process demands a strategic understanding of each step. Initiate the process promptly by filing Form GST REG-21 within 30 days of receiving a cancellation notice. Navigate through document submissions, timely responses to notices, and the potential for a hearing. The comprehensive step-by-step guide below will help businesses restore their GST registration seamlessly, reintegrating all GST benefits as quickly as possible.
Process for Revocation of Cancellation of GST Registration

Step 1: Initiate Application

File Form GST REG-21 on the GST Portal within 30 days of receiving the cancellation notice. If cancellation is due to non-filing of returns, file only after settling pending returns with interest and penalty. Ensure all relevant details, including the GSTIN and reasons for revocation, are accurately provided.

Step 2: Upload Supporting Documents

Attach essential documents, such as bank statements, audit reports, and financial statements, supporting the reasons for revocation. Documents must be filed within seven days of filing Form GST REG-21. Ensure the documentation aligns with the specific reasons cited in the application. Also, attach the DSC of the authorised signatory for authentication. Except for Companies and LLPs, the rest can authenticate using EVC as well.

Step 3: Acknowledgment by Tax Authorities

Upon submission, the applicant receives an acknowledgment IN GST REG-02 form. Regularly check the application status on the GST portal during this phase.

Step 4: Review by Tax Authorities

Tax authorities typically review the application within fifteen days of receiving the acknowledgment. Be prepared to respond promptly to any notices requesting additional information in Form GST REG-03, ensuring a comprehensive and timely reply.

Step 5: Attend Hearing, if Required

If a show-cause hearing is scheduled to resolve the issue, respond within seven days of receiving the intimation in Form REG-24. Use this opportunity to clarify the queries raised by tax authorities. The show cause notice will be issued and sent in form GST REG-23.

Step 6: Order for Revocation or Rejection

If the authorities are satisfied with your response, they will issue the order for final revocation in form GST REG-22 within 30 days of receiving the complete application. However, if unsatisfactory, a rejection order will be issued rejecting the application for GST REG-05.

Step 7: Publication of Order & Restoration of GST benefits

The order is published on the GST portal within seven days of issuance. Monitor the publication for transparency in the revocation process. Upon receiving the order for revocation (Form GST REG-22), input tax credit is restored. Promptly integrate the restored credit into ongoing business operations. Sustain regular compliance post-revocation to prevent future cancellations. Monitor and address any compliance issues promptly to ensure sustained GST compliance.
Note: Before 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.

In conclusion, the revocation of cancellation of GST registration is a vital process demanding precision and strategic navigation. Every step plays a pivotal role, from the initial filing of Form GST REG-21 to the careful submission of supporting documents and responses to notices. Successful revocation not only reinstates businesses to GST compliance but also restores the critical privilege of claiming input tax credits. Navigating this process goes beyond procedural requirements; it is a strategic endeavor ensuring uninterrupted business operations within the legal confines of GST.



Q1: Why is revocation of cancellation of GST registration necessary?

The revocation of cancellation of GST registration holds immense significance for businesses as it marks the process of reinstating their compliance with Goods and Services Tax regulations. This strategic endeavor ensures businesses can resume GST-compliant operations and regain the ability to claim crucial input tax credits.

Q2: Can I apply for revocation after 30-days of GST cancellation?

Yes, businesses can still apply for revocation of GST cancellation beyond the initial 30-day period, subject to extension notified by the GST Department.

Q3: What are the key documents required for GST cancellation revocation?

Businesses must submit essential documents such as bank statements, audit reports, and financial statements to support their revocation application. Aligning these documents with the specific reasons cited in the application is crucial for a successful GST cancellation revocation process.

Q4: Can businesses claim input tax credit after revocation of GST cancellation?

Yes, businesses can reclaim the privilege of claiming input tax credits upon successfully revoking GST cancellation. This crucial aspect of financial recovery is reinstated, contributing to the overall restoration of businesses to GST compliance. Understanding the nuances of this process is key for a seamless transition.

Q5: What is Form GST REG-21 used for?

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

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