A Comprehensive look on - Application for Revocation of Cancellation of Registration under GST

[Nayan Sharma]

In GST there are ample grounds available with the officer for cancellation of registration. However, to enhance natural justice, an option was given to the assessee to apply to revoke such cancellation order.

In addition to the section and rules, the government has issued circulars and notifications regarding the application process. This article attempts to consolidate all such provisions in a comprehensive and simplified manner with an objective to assist the businesspeople:

Legal Provisions:

The Act:

Section 30 of the CGST Act,2017 covers the applicable provisions for revocation of cancellation of registration. As per section 30:

• If registration is cancelled by the proper officer on his own motion.
• A registered person may apply for revocation of cancellation of registration

Insertion of proviso:

A new proviso was inserted from 1st January 2021. The proviso provided two levels of extension for the timeline for filing the revocation application:

1. Extension of 30 days- by Additional or Joint Commissioner.
2. Further extension of 30 days- by Commissioner.

Applicable rules for revocation of registration:

1. Where the registration is cancelled due to non-filing of returns, revocation application would not be considered until all such returns are filed and applicable taxes are paid.
2. Further, If registration cancelled retrospectively, then unfiled return to be filed within 30 days from the date such revocation is allowed.

 

Applicable forms:

Particular	Form issued/filled by	Form	Time-line
Application for revocation of cancellation of registration	Registered person	Form REG-21	30 days from service(receipt) of order of cancellation of registration -subject to extensions
Before rejection, Show cause notice against application of revocation	Proper Officer	Form REG-23	Before passing order rejecting the application
Reply against show cause notice	Registered person	Form REG-24	Within 7 days from service of REG-23
Order for revocation of cancellation of registration (Application accepted)	Proper Officer	Form REG-22	Within 30 days of receipt of REG-21
Application rejected	Proper Officer	Form REG-05	Not specified- Should be 30 days from receipt of REG-21

Manual filing of Application:

Please note that process of filing the revocation application on the portal is not yet functional. Therefore, CBIC issued circular no. 148/04/2021 regarding manual filing of the application. The circular states the following:

Revocation application filing timeline	Manual Submission to:
Filed without any delay	The proper officer issuing the order of cancellation
Delay ranging from 30 to 60 days from the order of cancellation	The proper officer issuing the order of cancellation Proper officer to forward to JC/Add.C
Delay ranging from 30 to 60 days from the order of cancellation	The proper officer issuing the order of cancellation Proper officer to forward to Commissioner

Recent Extension for filing of application:

The government recently issued notification 34/2021- Central Tax dated 29^th August 2021 wherein the the date of filing of application of revocation of registration has been extended upto 31^st September, 2021.

This extension is applicable to cases where the time limit of filing such application falls within 1-Mar-20 to 31^st Aug 2021. Further, the new due date is only applicable to cases where the registration is cancelled due to consecutive non filing of returns. (6 tax periods for regular tax payer and 3 tax periods for  composition scheme dealer)

This notification is simple but the complete revocation machinery is not. The notification fails to answer the following questions, e.g.,

1. Does the stage of application impacts the due date?
2. Can the registered person use both the extensions again?

The government issued the Circular no. 158/14/2021-GST dated 6^th September 2021, to provide solution to such questions.

Circular no. 158/14/2021-GST dated 6^th September 2021

The circular answers the two questions stated above.

Does the stage of application impacts the due date?

Below table provides for the process to follow regarding the stage of the application for revocation:

Stage of application of revocation				Action required
Filed	(i) Rejected by P.O	(ii) Appeal Filed	(iii) Appeal rejected
No	No	No	No	File up to 30th Sept 21 considering extended.
Yes	No	No	No	No action required. P.O shall process document considering the extended time limit
Yes	Yes	No	No	Fresh Application shall be filed & Officer shall process the file considering extended period up to 30th Sept. Appeal not to be filed.
Yes	Yes	Yes	No	No action required Authority shall process the file.
Yes	Yes	Yes	Yes	Fresh application is to be filed and officer shall process the document considering the extended time limit up to Sept 2021

Can the registered person use both the extensions again?

As discussed above, a proviso was inserted in section 30 granting exemptions of 30+30 days. Please note that this exemption was only applicable from 1.1.2021.

The circular allows extension post September 30^th, 2021 on a simple concept. Only the unused extension could be availed on the new date of 30^th September 2021.

If the person were to file the revocation application on 31^st August 2021, would they need to avail the extension facility given by the proviso? If yes, then it would be assumed that you have already exploited the said extension.

Following table could better explain the manner of utilization of extension with the new time limit:

Time limit falls on		Extension already availed		New time limit for filing: Initial date	Extensions available now		Last date inclusive of extensions
Particulars	Date	30 days (add. C/JC)	30 days (Comm-issioner)		30 days (add. C/JC)	30 days (Comm-issioner)
Before amendment allowing extensions	Any day between 1.3.2020 to 31.12.2020	NA	NA	30-09-2021	NA	NA	30-09-2021
30 days elapsed by 31.08.2021	01-08-2021	No	No	30-09-2021	Yes	Yes	29-11-2021
60 days elapsed by 31.08.2021 (30+30)	02-07-2021	Yes	No	30-09-2021	No	Yes	30-10-2021
90 days elapsed by 31.08.2021 (30+30+30)	02-06-2021	Yes	Yes	30-09-2021	No	No	30-09-2021

Conclusion:
The revocation of cancellation of registration is a beneficial provision serving as a tool for better implementation of natural justice. The government is giving a change to the general public to correct any anomaly in their registration that led to registration and be compliant going forward. Please note that the extensions are allowed only after the permission is received from Add.Commissioner/Joint Commissioner or Commissioner. Therefore, it should be used as a last resort. All efforts should be made to apply for revocation before 30^th September 2021.

The author himself is surprised by the myriad of provisions and procedures that the revocation of cancellation of registration has turned into, all for the sake of ease and simplicity, Ironic indeed!!  

Feel free to reach the author at [email protected]

Discussions to this article

[Nayan Sharma]

Update:

As decided in the 45th GST Council meeting, Aadhar Authentication to be made mandatory in order to file application for revocation of cancellation of registration.