Clarification regarding extension of time limit to apply for revocation of cancellation of registration in view of Notification No. 34/2021-State Tax dated 05.01.2022 - GST - States - 21/2021-GST

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE TAXES (POLICY BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002 No. F.3(390)/GST/Policy/2021/1234-1240 Dated 27/04/2022 CIRCULAR NO. 21/2021-GST of State Tax (Ref. Circular No. 158/14/2021-GST of Central Tax dated 06.09.2021) Subject: Clarification regarding extension of time limit to apply for revocation of cancellation of registration in view of Notification No. 34/2021-State Tax dated 05.01.2022 -Reg. Vide Circular No. 15/2021-GST of State Tax (Ref. Circular No. 148/04/2021-GST of Central Tax, dated 18th May, 2021), detailed guidelines for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as the DGST Act / said Act ) and rule 23 of the Delhi Goods and Services Tax Rules, 2017 (hereinafter referred to as the DGST Rules ) have been specified, till the time an independent functionality for extension of time limit for applying in FORM GST REG-21 is developed on the GSTN portal. It may be noted that notification No.14/2021-State Tax, dated 17.11.2021 , as amended, had, inter-alia, extended the date of filing of application for revocation of cancellation of registration till 30th June, 2021, where the due date of filing of application was falling between 15th April, 2021 to 29th June, 2021. Government has now issued notification No. 34/2021-State Tax dated 05.01.2022 (hereinafter referred to as the said notification ) under section 168A of the said Act to extend the timelines for filing of application for revocation of cancellation of registration to 30th September, 2021, where the due date of filing of application for revocation of cancellation of registration falls between 1st March, 2020 to 31st August, 2021. This extension is applicable for those cases where registrations have been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the said Act. 2. In order to ensure uniformity in the implementation of the said notification across All Wards and Zones, the Commissioner, in exercise of its powers conferred by section 168(1) of the said Act, hereby clarifies the issues relating to the extension of timelines for application for revocation of cancellation of registration as under: 3. Applications covered under the scope of the said notification 3.1. The said notification specifics that where the due date of filing of application for revocation of cancellation of registration falls between 1 st March, 2020 to 31st August, 2021, the time limit for filing of application for revocation of cancellation of registration is extended to 30th September, 2021. Accordingly, it is clarified that the benefit of said notification is extended to all the cases where cancellation of registration has been done under clause (b) or clause (c) of sub-section (2) of section 29 of the DGST Act, 2017 and where the due date of filing of application for revocation of cancellation of registration falls between 1st March, 2020 to 31 st August, 2021. It is further clarified that the benefit of notification would be applicable in those cases also where the application for revocation of cancellation of registration is either pending with the proper officer or has already been rejected by the proper officer. It is further clarified that the benefit of notification would also be available in those cases which are pending with the appellate authority or which have been rejected by the appellate authority. In other words, the date for filing application for revocation of cancellation of registration in all cases, where registration has been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of DGST Act, 2017 and where the due date of filing of application for revocation of cancellation of registration falls between 1 st March, 2020 to 31 st August, 2021, is extended to 30th September, 2021, irrespective of the status of such applications. As explained in this para, the said notification would be applicable in the following manner: (i) Application for revocation of cancellation of registration has not been filed by the taxpayer- In such cases, the applications for revocation can be filed upto the extended timelines as provided vide the said notification. Such cases also cover those instances where an appeal was filed against order of cancellation of registration and the appeal had been rejected. (ii) Application for revocation of cancellation of registration has already been filed and which are pending with the proper officer- In such cases, the officer shall process the application for revocation considering the extended timelines as provided vide the said notification. (iii) Application for revocation of cancellation of registration was filed, but was rejected by the proper officer and taxpayer has not filed any appeal against the rejection- In such cases, taxpayer may file a fresh application for revocation and the officer shall process the application for revocation considering the extended timelines as provided vide the said notification. (iv) Application for revocation of cancellation of registration was filed, the proper officer rejected the application and appeal against the rejection order is pending before appellate authority- In such cases, appellate authorities shall take the cognizance of the said notification for extension of timelines while deciding the appeal. (v) Application for revocation of cancellation of registration was filed, the proper officer rejected the application and the appeal has been decided against the taxpayer- In such cases, taxpayer may file a fresh application for revocation and the officer shall process the application for revocation considering the extended timelines as provided vide the said notification. 4. It may be recalled that, with effect from 01.01.2021, proviso to sub-section (1) of section 30 of the DGST Act has been inserted which provides for extension of time for filing application for revocation of cancellation of registration by 30 days by the Zonal Incharge (Special Commissioner/Additional Commissioner/ Joint Commissioner) and by another 30 days by the Commissioner. Doubts have been raised whether the said notification has extended the due date in respect of initial period of 30 days for filing the application (in cases where registration has been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of DGST Act, 2017) under sub-section (1) of section 30 of the DGST Act or whether the due date of filing applications for revocation of registration can be extended further for the period of 60 days (30 +30) by the Zonal Incharge (Special Commissioner/ Additional Commissioner/ Joint Commissioner), as the case may be, beyond the extended date of 30.09.2021. It is clarified that: (i) where the thirty days' time limit falls between 1 st March, 2020 to 31 st December, 2020, there is no provision available to extend the said time period of 30 days under section 30 of the DGST Act. For such cases, pursuant to the said notification, the time limit to apply for revocation of cancellation of registration stands extended up to 30th September, 2021 only; and (ii) where the time period of thirty days 'since cancellation of registration has not lapsed as on 1 st January, 2021 or where the registration has been cancelled on or after 1st January, 2021, the time limit for applying for revocation of cancellation of registration shall stand extended as follows: (a) Where the time period of 90 days (initial 30 days and extension of 30 + 30 days) since cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021, without any further extension of time by Zonal Incharge (Special Commissioner/ Additional Commissioner/ Joint Commissioner). (b)Where the time period of 60 days (and not 90 days) since cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021, with the extension of timelines by another 30 days beyond 30.09.2021 by the Commissioner, on being satisfied, as per proviso to sub-section (1) of section 30 of the DGST Act (c) Where the time period of 30 days (and not 60 days or 90 days) since cancellation of registration has elapsed by 31.08.2021, the time limit to apply for revocation of cancellation of registration stands extended upto 30th September 2021, with the extension of timelines by another 30 days beyond 30.09.2021 by the Zonal Incharge ( Special Commissioner / Additional Commissioner/ Joint Commissioner) and another 30 days by the Commissioner, on being satisfied, as per proviso to sub-section (1) of section 30 of the DGST Act. 5. Difficulty, if any, in the implementation of the above circular may please be brought to the notice of the Commissioner, State Tax. (ANKUR GARG) COMMISSIONER (State Tax)