As a business owner, you know the importance of complying with various regulations and rules. One such rule is the Goods and Services Tax (GST) registration, which is mandatory for businesses with an annual turnover of over Rs. 40 lakh. GST registration helps businesses to streamline their tax compliance and provide benefits such as input tax credit. However, in certain circumstances, the GST registration can be cancelled by the authorities. In this article, we will discuss the revocation of cancellation of GST registration, its process, and the important things to keep in mind.
What is the Revocation of Cancellation of GST Registration?
The GST registration of a business can be cancelled by the authorities if the business does not comply with the GST rules and regulations. The GST registration can also be cancelled if the business does not file GST returns for a continuous period of six months. Once the GST registration is cancelled, the business cannot continue to make supplies, collect tax, or claim input tax credit. The business is also required to pay any tax liability that arises due to the cancellation of GST registration.
However, in some cases, businesses may want to revoke the cancellation of their GST registration. This is known as the revocation of cancellation of GST registration.
When Can a Business Apply for Revocation of Cancellation of GST Registration?
A business can apply for the revocation of cancellation of GST registration within thirty days from the date of cancellation of GST registration. The business must provide sufficient reasons for the cancellation of the GST registration. The reasons must be valid and based on the grounds specified under the GST law.
Grounds for Revocation of Cancellation of GST Registration
The GST law provides for various grounds for the revocation of cancellation of GST registration. Some of the common grounds are:
Compliance with GST Rules and Regulations
If the business has complied with the GST rules and regulations, it can apply for the revocation of cancellation of GST registration.
Non-fulfilment of Conditions for Cancellation
If the business did not fulfil the conditions for cancellation of GST registration, it can apply for the revocation of cancellation of GST registration.
Payment of Tax Liability
If the business has paid the tax liability that arises due to the cancellation of GST registration, it can apply for the revocation of cancellation of GST registration.
Process for Revocation of Cancellation of GST Registration
The process for the revocation of cancellation of GST registration is as follows:
Step 1: File an Application
The business must file an application for the revocation of cancellation of GST registration in FORM GST REG-21 within thirty days from the date of cancellation of GST registration.
Step 2: Verification by GST Authorities
The GST authorities will verify the application and check if the reasons provided by the business are valid. The authorities may also ask for additional information or documents to support the reasons provided by the business.
Step 3: Approval or Rejection of Application
Based on the verification, the GST authorities will either approve or reject the application for the revocation of cancellation of GST registration. If the application is approved, the GST authorities will issue an order for the revocation of cancellation of GST registration.
Important Points to Keep in Mind
Here are some important points to keep in mind while applying for the revocation of cancellation of GST registration:
- The application for the revocation of cancellation of GST registration must be filed within thirty days from the date of cancellation of GST registration.
- The business must provide valid reasons for the revocation of cancellation of GST registration.
- The GST authorities may ask for additional information or documents to support the reasons provided by the business.
- The GST authorities may reject the application for the revocation of cancellation of GST registration if the reasons