Introduction: GST Revocation

The Indian Government introduced the GST (Goods and Services Tax) in 2017 in order to bring service charges and indirect taxes under the same room. The implementation of GST resulted in bringing several indirect taxes and service charges under one bracket. It is a destination-based tax and is implicated to all who have turnover INR 40 lakhs per annum (10 lac in northeast and hilly areas). CBIC (Central Board of Indirect Tax and Customs) has notified the increase in threshold turnover from INR 20 lakhs to INR 40 lakhs. The notification will come into effect from 1st April 2019.

The cancellation of GST Registration can be understood as the voluntary or involuntary discontinuation of the GST registration due to any reason discontinuation or amalgam or merger of business or if asked by the authority. If the GST Registration gets cancelled, the applicant can re-apply for its re-issue, or official cancellation of a decision, this process is known as GST Revocation.  It is the process that involves taking back the decision of cancelling GST Registration online, which means the registered GST is still valid.

GST registration can be cancelled by

• GST Registered entity
• The tax officers
• Legal in case of death of the taxpayer
• If requested by the taxpayer in case the turnover is less than 40 lakhs (except in North-East States)

Reason for the Cancellation

• The business operations are shut
• The business entity got merged with any other entity
• The business has transferred fully, demerged, amalgamated
• If the PAN is changed
• Change in type of business entity
• Can be cancelled by authority due to non-filing of GST returns or in case of any fraud

Cancellation Forms

• By registered individual – Form GST REG 16
• Issue show cause notice– Form GST REG 17
• Show cause notice reply – Form GST REG 18
• Dissolution Order – Form GST REG 19
• Stop the cancellation– Form GST REG 20  
• Stay on proceedings explanation form – Form GST REG 18
• Revocation application – Form GST REG 21
• Order for the revoking the cancellation – Form GST REG 22

Timeline to apply for Revocation

Application for the Revocation of the GST can be applied only in case when the registration is cancelled by Tax Officer. Application is required to be filed within 30 days of the receipt of show-cause notice for cancellation.

Procedure to apply for revocation

• Step 1 - The application is applied in form GST REG 21
• Step 2 - the reasons for the revocation of cancellation of registration must be provided in writing.
• Step 3 - The tax officer can reject the application for revocation by an order in FORM GST REG-05
• Step 4 - before rejecting the application the designated officer will issue a show-cause notice in FORM GST REG–23 in order to provide a chance for the applicant for providing clarification for the registration should not be rejected.
• Step 5 - the applicant can reply in FORM GST REG-24 within 7 working days from the date of the show-cause notice.
• Step 6 - Within 30 days from the date of receipt of clarification, the office will accept/reject the application in FORM GST REG-24.

Procedure to re-apply for GST Registration if cancelled by Tax Officer -

• Step 1 - A show-cause notice is sent to the person in FORM GST REG-17.
• Step 2 - Applicant can reply to the show-cause notice in FORM GST REG–18 within 7 days from the date of the receipt of the notice stating the clarification with his registration should not be cancelled.
• Step 3 - If the reply is satisfactory, the tax officer will issue an order in the FORM GST REG –20.
• Step 4 - If the registration is liable to get cancelled, the order will be issued in FORM GST REG-19 by the office and will be sent to the applicant within 30 days from the date of reply to the show cause.

Procedure for Voluntary GST Cancellation

In case the turnover of the business is less than the threshold limit

This process is no longer utilised as this provision was valid until the time of migration of taxpayers who were registered under the older tax regime to GST.

• Procedure in other cases -

Application is filled in Form GST REG- 16 with the following details

• Details of goods in stock on the date when the application for the GST cancellation of registration is submitted
• Liability thereon
• Details of the payment

The officer will issue an order for cancellation in FORM GST REG-19 within 30 days from the date of application.

Conclusion

As we all know that government mandated the Goods and Service Tax (GST) Registration for all business holders in 2017 by setting a threshold limit i.e. it is mandatory for business owners having turnover of more than INR 40 lakhs per annum. It is also mandatory for all business holders to file monthly or quarterly returns in order to avoid penalties or cancellation of the GST registration.

The government has also provided the provision that if anyone wants to cancel their registration due to any reason they can do that. The registration can also be cancelled by the authority in case there is the default in return filing, or any fraud is conducted. The cancellation of GST registration can be done in three by anyone, namely, by the taxpayer, by the tax officer and by the legal heir of the deceased taxpayer.

Furthermore, in any case, or situation when there is a requirement if re-registration of the cancelled GST number, that can also be done by the method of GST Revocation as prescribed by relevant laws.

If you wish to revoke your GST number or apply for new you can contact us.