The GST registration issued under the GST Act can be revoked for any of the reasons stated. The cancellation can be conducted by a department or by the registered individual, who has the option to revoke their registration.

In the event of the registered person's death, the legal heirs may petition for registration cancellation. If the department cancels the Goods & Service Tax registration, there is an option for reversal of the cancellation of the concerned registration. When a person cancels their registration, they must file a return known as the last return.

What is the Revocation of Cancellation of GST Registration?

Form GST REG-21 must be submitted by a taxpayer whose GST registration has been terminated by the relevant authorities. This application must be filed within thirty days of obtaining notification of the cancellation of the GST registration. It should be noted that an application for revocation can be lodged only if the appropriate authority has cancelled the registration on his own initiative. As a consequence, revocation cannot be invoked when a taxpayer voluntarily cancels the GST Registration.

Reasons for Cancellation of GST Registration

The reasons for the cancellation of GST Registration are as follows:

• A person becomes registered under any existing legislation but is not required to register under the GST Act.
• The business that has been terminated, entirely transferred for whatever cause, including the death of an owner, combined with another legal entity, demerged, or otherwise disposed of.
• In the event that a company's constitution changes.
• Any taxable person other than the individual who willingly registered as per sub-section (3) of Section 25 CGST Act, 2017 is no longer required to register.
• A registered individual has violated any of the Act's or regulations' requirements.
• A person who has paid Composition Levy tax but has not filed returns for three consecutive tax periods.
• Other than the individual paying tax under the Composition levy, any registered person has not filed any returns for the past six months.
• Anyone who registers voluntarily under subsection (3) of section 25 has not started a company within six months after registration.
• If registration was obtained via deception, deliberate misrepresentation, or suppression of facts.

The Process for Revocation of Cancellation of GST Registration

The procedure for revocation of cancellation of GST registration involves the following steps:

• When a Superintendent of Central Tax cancels a GST registration on his own motion rather than on the basis of an application, the registered person whose registration has been cancelled may apply for revocation of cancellation of GST registration. It is made to an Assistant or Deputy Commissioner of Central Tax in FORM GST REG-21 within 30 days of the date of delivery of the declaration of cancellation of GST registration via a common portal, either directly or through a Facilitation Centre approved by a Commissioner.
   
• If a registration has been revoked owing to failure to submit returns, an application for revocation must be made only after the returns have been completed, and the sum owed as tax has been paid. In the case of such returns, it must be paid in addition to the amount owed for interest, late fees, and penalties.
   
• Suppose the Assistant or Deputy Commissioners of Central Tax is satisfied, reasons to be recorded in writing. In that case, that there is reasonable justification for revocation of cancellation of GST registration, he or she must revoke the cancellation of registration by a declaration in the FORM GST REG-22 within 30 days from the date of challan of an application & communicate the same to an applicant.
   
• However, if the Deputy Commissioner of Central Tax is not satisfied after reviewing an application for revocation, he must issue a notice in FORM GST REG-23 demanding an applicant show a reason why an application submitted for revocation should not be refused. The applicant must respond in FORM GST REG24 within seven working days after the date of service of the notification.
   
• After receiving information or clarification in FORM GST REG-24, the Assistant Commissioner or Deputy Commissioners of Central Tax must dismiss a request within 30 days after receiving such information or clarification from the applicant. If the information or clarification offered is sufficient, the Assistant or Deputy Commissioners of Central Tax must dismiss the application.
   
• If it is insufficient, the applicant must be given an opportunity to be heard, following which the Assistant or Deputy Commissioners of Central Tax might, by a declaration in FORM GST REG- 05, reject an application for the revocation or cancellation of GST registration and notify the applicant.
   
• Revocation of cancellation of GST registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act must be considered a revocation of cancellation of registration under the GST Act.
   

Rescission By a Proper Authority

An approved officer may withdraw a taxpayer's registration if they are not conducting business from the address they indicated when registering for GST.
 

Even if products or services have yet to be supplied, the firm or individual in issue sends out invoices.

The registrant is so violating anti-profiteering legislation.

It is permitted for those taxpayers whose total taxable worth of supply for the month exceeds 50 lakh to utilise ITC from an electronic credit register to discharge over 99% of their tax burden, provided certain requirements are satisfied.

A taxpayer who fails to file GSTR-3B for more than six months.

If there are any 'Significant Anomalies' in the quantities of incoming supplies documented in GSTR 3B and those stated in GSTR1 ITC, the supplier will be placed on hold.

GSTR 3B Declared Value vs. GSTR 2B Data Comparison

An authorised person sends a show cause notification in Good & Service Tax Registration REG -17.

If the enrolled individual disagrees, they must react in Gst Registration REG -18 within seven days of receiving the letter.

If the authorised official is happy with the response, he may dismiss the matter by issuing an order on FORM GST REG -20.

If the registered person fails to offer adequate grounds for not having their registration cancelled, the authorised person will make a judgement in FORM GST REG-19.

The decision will be issued within 1 month after the receipt of the show cause answer.

Refusal of Cancellation of GST Registration Request

The GST office may reject the application if the competent authorities uncover any contradiction in the request or the accompanying documentation. The official must submit a notification in GST Registration REG - 23 before rejecting or seeking further information. The application-registered taxpayer must answer Form GST REG - 24 within 7 days of the notice's delivery date. When the officer receives the response within 1 month, the order in Form GST REG - 05 may be issued.

Whether or not the taxpayer files an appeal, if the tax inspector refuses the revocation, the GSTIN status will remain inactive until the rejection procedure is finished.

Conclusion

If the GST registration has been terminated due to any failure to file returns, a request for revocation cannot be filed. However, such returns must be filed first, together with payment of any taxes, interest, and penalties owed. In the event of voluntary Goods & Service Tax registrations, cancellation applications can be lodged just one year following the date of the registration.