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GST (Goods and Services Tax) Revocation refers to the process of restoring the GST registration of a taxpayer whose registration has been canceled by the tax authorities. The revocation of GST registration allows businesses to resume their GST obligations, including filing returns, claiming input tax credit (ITC), and continuing business operations without any restrictions.

In case a taxpayer’s GST registration is canceled by the authorities, the taxpayer can apply for the revocation of the cancellation within a specified time frame, provided they fulfill the conditions and requirements laid down by the GST law.

Reasons for GST Registration Cancellation

GST registration can be canceled by the tax authorities under the following circumstances:

Non-filing of GST Returns:

• If a registered taxpayer fails to file their GST returns for a continuous period, their registration may be canceled.

Failure to Obtain GST Registration:

• If a person is required to obtain GST registration but fails to do so, the registration may be canceled.

Inactivity in Business:

• If a taxpayer is found to be inactive or not conducting any business, their GST registration can be canceled by the authorities.

Non-compliance with GST Laws:

• Continuous failure to comply with GST rules and regulations can lead to cancellation of GST registration.

In case of Voluntary Cancellation:

• A taxpayer may request to cancel their GST registration voluntarily if they are no longer required to pay GST, for example, if their business turnover falls below the threshold limit.

Procedure for GST Registration Revocation

The following steps outline the procedure for applying for GST registration revocation:

Log into the GST Portal:

• The first step is to log into the official GST Portal (www.gst.gov.in) using the taxpayer’s credentials.

Navigate to the GST Application Section:

• After logging in, navigate to the "Services" tab, then select "Registration" and click on "Application for Revocation of Cancellation of Registration."

Fill in the Revocation Application:

• The taxpayer needs to fill out the GST Revocation Application form, providing necessary details such as GSTIN, reason for revocation, and other relevant information.

Provide Necessary Documents:

• Any documents required to support the revocation, such as a statement of compliance, proof of business activity, or reasons for the cancellation, should be uploaded in the application form.

Submit the Application:

• After filling in the details and uploading the required documents, the taxpayer must submit the application for revocation.

Review by GST Officer:

• After submission, the GST officer will review the application for revocation. The officer may either approve or reject the request based on the documents provided and the reasons for cancellation.

Revocation Approval:

• If the application is approved, the GST registration will be reinstated, and the taxpayer will receive a confirmation of revocation on the GST portal.
• The revocation is usually effective from the date of the application or the date of cancellation, depending on the officer's decision.

Issuance of GST Registration Certificate:

• Once the GST registration is revoked, the taxpayer can proceed with their regular GST operations and start filing GST returns, claiming ITC, and other tax-related activities.

Time Limit for GST Revocation

For GST Registration Cancellation by Authorities: A taxpayer must apply for the revocation of canceled registration within 30 days from the date of receiving the cancellation order from the tax authorities.

For Voluntary Cancellation by Taxpayer: A taxpayer who voluntarily requests cancellation of their GST registration can also request for revocation if it is later deemed necessary, within the stipulated period.

Conditions for GST Revocation

For a GST registration revocation application to be approved, the following conditions must be met:

No Outstanding Returns:

• The taxpayer must have filed all pending GST returns (if any) before applying for revocation.

Payment of Outstanding Tax Liabilities:

• Any outstanding tax liabilities or penalties must be settled before filing the revocation request.

Compliance with GST Rules:

• The taxpayer should ensure they are compliant with all GST rules and regulations.

Reasonable Cause for Revocation:

• There should be a valid reason for the cancellation and revocation application, such as resuming business operations or resolving the non-compliance issues.

Common Reasons for Rejection of GST Revocation Application

Non-filing of Returns:

• If the taxpayer has pending returns or hasn't cleared their tax liabilities, the application for revocation may be rejected.

Incomplete Application:

• If the revocation application is incomplete or missing necessary documents, it may not be processed.

Irregularities in the Business:

• If the GST officer suspects that the business is still not operational or there is some form of tax evasion, the revocation may not be approved.

Violation of GST Provisions:

• If the business has been found violating other GST provisions, the revocation request may be denied.

Important Points to Remember:

• If a taxpayer fails to file their GST returns for a period of six months or more, the GST registration will be canceled, and revocation may not be possible unless specific conditions are met.
• Revocation of GST registration can only be done for cancellations initiated by the tax authorities and not for voluntary cancellation by the taxpayer unless the revocation is within the guidelines.