GST Revocation and Cancellation

Goods and Services Tax (GST) was introduced in India with an idea to streamline the indirect taxation system by adopting a hybrid method of collection of indirect taxes. The GST registration can be cancelled by the authorities due to any reason or the registered person can itself apply to the GST department for cancellation of the Goods and Services Tax Identification Number (GSTIN). GST cancellation and revocation of cancellation are complementary topics and go hand in hand in the manner that revocation cannot be applied unless the registration is cancelled by the department. 

The GST can be cancelled by the department due to the following reasons:

  • Registered under Previous law: A person registered under VAT or Sales Tax but is no more liable to be registered under this CGST Act
  • End of business: The business has been discontinued, amalgamated, transferred, or demerged or disposed off
  • Change in structure of business: There has been change in constitution of the business 
  • Liability ceases under GST: A person who has not applied under ‘Voluntary Registration’, is not liable to be registered under GST.
  • Contravention of law: A person having GSTIN has contravened any of the provisions of the law
  • Failure in filing of return: A person having GSTIN, not under composition levy, has not filed return for six months in sequence
  • Failure to commence business: A person registered voluntarily has not started business within six months from the date of registration
  • Fraud or misstatement: Registration has been taken by means of fraud, wilful misstatement, or suppression of facts 

Procedure for cancellation of registration:

  • The cancellation application or request made to any state government/ union territory GST department shall be deemed to be an application made under the central GST department.
  • Where the proper officer has reasons to believe that the registration of the registered person shall be cancelled then such proper officer shall send a notice in GSTR REG-17 of the same to the registered person requiring to show cause why his registration shall not be cancelled
  • Reply to the notice shall be given by the registered person in form GST REG-18 within seven working days
  • If the reply is good with the proper officer, he may drop the proceedings and pass an order in GSTR REG-20.

Procedure adopted when a cancellation request is made by the registered person:

  • The proper officer will issue an order in form GST REG-19 in maximum 30 days from the date of application by registered person and cancel the registration
  • Once the registration is cancelled the proper office will show specify him the interest, arrears of tax or any other payment due to the registered person
  • The registered person shall pay the Input Tax Credit (ITC) held by him by way of stock or capital goods or plant and machinery on the day before the date of cancellation or GST payable on such goods (whichever is higher)
  • The cancellation shall not waive the liability of the registered person under GST law before or after the cancellation

Where the registration has been cancelled by the department the registered person shall file a final return within three months of cancellation or order of cancellation (later date).

In order to get more information on GST cancellation of GST registration please click here for expert consultation.

Benefits of filing an application for GST cancellation:

  1. Less compliance: Once the GST registration is cancelled by proper officer the registered person is relieved with the monthly/ quarterly disclosure of returns, way bills and other legal requirements
  2. Cost reduction: After getting away with GST the professional it eliminates the compliance cost such as professional fees or filing fees
  3. Legal clarity: The legal standing of the registered person becomes clear in the market
  4. Less accounting complexities: The GST cancellation climates many accounting complexities of the organisation related to Input Tax Credit, time of supply and other alike matters.

The application for GST revocation application for cancellation comes up when the cancellation is initiated by the GST department. The concept of revocation application gives an opportunity to the registered person to improve or correct the circumstances that let to cancellation.

Procedure for Revocation of Cancellation:

  1. Application for revocation: The registered person whose registration has been cancelled by the proper officer shall make an application of revocation in GST REG 12 in thirty (30) days from the date of order of cancellation.
  2. Failure to file returns: In case registration is cancelled due to failure in filing of returns then application for revocation shall be made only after the due returns are filed by the registered person.
  3. Satisfactory application of revocation: In case the proper officer is satisfied with the reasoning given in the revocation application and he is satisfied that registration cancelled shall be revoked, proper officer shall restore the registration by an award in GST REG 22.
  4. Non satisfactory application of revocation: In case the proper officer is not satisfied with the reasoning given for restoration of application, the proper officer will issue a show cause notice in GST REG 23 and the person has to reply within seven (7) working days from date of notice in GST REG 24.
  5. Reply to show because notice is satisfactory: After considering the reply given by the registered person, the proper officer finds it satisfactory then he may restore the registration as per point (3).
  6.  Reply to show cause notice is not satisfactory: After considering the reply given by the registered person, the proper officer finds it unsatisfactory, he shall give an opportunity of being heard to the registered person and after recording the reasons he may pass on order in GST REG
  7. Compliance post revocation: Returns due to be filed - The returns due from the date of order of cancellation till the date of order of revocation shall be filed in a maximum of thirty (30) days from the date of revocation order. 

Initiate your GST revocation application with SeedUp.

  1. Free Consultation: Our GST experts will provide you a 15 mins free consultation on the regulatory aspects and case to case basis consultation depending upon the business conditions of the enterprise.
  2. Price: We provide the best price in this perfect competitive market across India along with enriching client experience.
  3. Documents Collection: A complete list of documents required to complete the task shall be provided by us at once to eliminate the hassle for documents.
  4. Documents Preparation: The drafting and reply to be made to GST department shall be made by us which is best among the industry
  5. End to End Support: We provide end to end support to our client’s right form start of the project till the completion of the task.
  6. To know more please click here to consult our experts 

Procedure for GST cancellation or revocation process.

  1. Fill the form to get in touch with us and get to know more about the expert consultation
  2. Documents collection: Our team will get in touch and help you regarding the whole documentation process.
  3. Guidance: Proper guidance and support will be given from us through the entire revocation or cancellation application along with authenticated ticket number
  4. Application Tracking: Once the application has been made regular updates will be given regarding the whole process till the revocation order is given. 


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