How to activate cancelled GST registration after 1 year

The provisions and processes under the GST Act cover a wide range of potential scenarios for a taxpayer. In this article, we examine the procedure for revoking a cancellation order for a GST registration as well as the relevant forms. The CGST Rules, 2017, Rule 23 contains the revocation provisions.   

Time Limit for Revocation

Within 30 days of the date the order of cancellation of GST registration was served, any registered taxable person may request for the revocation of that cancellation. It should be emphasised that the application for revocation can only be made in situations when the proper officer has voluntarily terminated the registration. Therefore, revocation is not an option when a taxpayer voluntarily cancels their GST registration.

Exception: There are some exceptions for revocation of GST registration, you can revoke your GST Registration within 30-90 days through the GST portal, but if exceeds more than 90 days then you have to get an order from the Honourable High Court, stating the proper ground for reactivation of your GST registration.

Application for Revocation

The registered person must submit an application in FORM GST REG-21 for the cancellation of their GST registration, either directly or through a facilitation centre that has been approved by the Commissioner.

Online Revocation Procedure

Following are the steps which a registered person needs to be followed, who wants to apply for revocation online through the GST Portal:

• Visit www.gst.gov.in to access the GST Portal.
   
• Enter the correct username and password to log in to the account.
   
• Select services in the GST Dashboard, then registration under services, and finally the application for revocation of cancelled registration option under registration.
   
• Choose the option to request the cancellation of your cancelled registration. Enter the justification for revoking GST registration cancellation in the choose box. Additionally, you must select the proper file to attach for any supporting papers, check the box for verification, specify the name of the authorised signatory, and fill out the place filled box.
   
• Selecting the SUBMIT WITH DSC OR SUBMIT WITH EVC box would be the last step.

Processing of Application

If the appropriate officer is satisfied with the taxpayer's justification for reversing the cancellation of registration, the officer will undo the cancellation.

The proper officer has 30 days from the application date to revoke the licence. The proper officer must sign an order in FORM GST REG-22 reversing the cancellation of registration.

Rejection of Application

A notification in FORM GST REG-23 would be issued by a GST officer if the officer is not satisfied with the revocation application. The applicant must provide a sufficient response in FORM GST REG-24 within 7 working days after receiving the notice after it has been served on them. After receiving an appropriate response from the applicant, the officer must pass a suitable order in FORM GST REG-05 within 30 days of the date on which they received the applicant's response.

Ineligible Applicants

Unable to request the revocation of a cancelled registration are UIN holders (i.e., UN Bodies, Embassies, and other Notified Persons), GST practitioners, and cases where the registration was cancelled at the taxpayer's or legal heir's request.

Online Application Procedure for Revocation of Cancellation

Visit GST Portal

Taxpayers must first go to the Goods and Services Tax portal to revoke or cancel their GST registration.

Login into Portal

To access the page with your username and password, click the "Login" button.

In the required section, enter the right "Username" and "Password" information along with the captcha, and then click "login."

Application for Revocation

• On the home page, under the services tab, you must click the Revocation of Cancellation of GST Registration link.
   
• When you click the link, the portal moves to the following screen, where you must fill out the Reason for revocation of cancellation form with your reason for cancelling your registration.
   
• After that, you must select a file to attach using the "Choose File" option.
   
• Select the checkbox for verification now.
   
• In the Name of Authorised Signatory drop-down list, choose the authorised signatory's name.
   
• The location of the application's filing must be entered in the Place field.
   
• The application form can also be saved by using the "save" button so that you can access it later.
   
• Select either the DSC or EVC option to submit your work.
   
• Use your Digital Signature Certificate (DSC) or the EVC option to sign the form. You will receive an OTP after choosing any of the choices listed below.
   

Using DSC Option

If a DSC is being used, the taxpayer must first choose the registered DSC from the emSigner pop-up screen before continuing as necessary.

Using EVC Option

Click on the Validate OTP button after entering the obtained OTP.

Acknowledgement Message

The system will create the ARN and display a confirmation message after receiving the application for the cancellation of registration successfully.

Additionally, the GST Portal will send a confirmation message to the cell phone number and email address you have on file.

The competent Tax Official will assess the application using this procedure and make a decision in accordance with it.

Approval by the Tax Official

The appropriate officer may reverse the cancellation of the GST registration after receiving the essential information and being satisfied with it.

When a request is approved by a tax official, the system creates an approval order and notifies the applicant—the taxpayer's primary authorised signatory—about the approval through email and SMS.

After the Application for Revocation of Cancelled Registration is approved, the taxpayer's GSTIN Status will change from Inactive to Active as of the cancellation effective date.

Rejection by the Tax Official

The rejection order is produced when the Tax Official denies a request to reinstate a cancelled registration.

The GST Portal will continue to display the GSTIN status as "Inactive," and the taxpayer will receive notifications from the Primary Authorised Signatory through SMS and email informing them that their application has been denied.

On the taxpayer's dashboard, they can see the Rejection Order receipt.

Offline Application Procedure for Revocation of Cancellation

The processes listed below can be used by the registered taxpayer to make a request for the cancellation or revocation of registration:

• If a registered taxpayer's registration has been revoked or cancelled suo moto by the appropriate tax official, he or she may submit the FORM GST REG-21 application for the revocation or cancellation of GST registration directly or through a facilitation centre that has been informed by the Commissioner.
   
• This FORM GST REG-21 is available for download from the GST portal.
   
• The application must be submitted at the Common Portal within 30 days after the day the cancellation order was served.
   
• In accordance with the Act, the authorised officer is required to reverse the cancellation of the registration. After receiving the application, the officer has 30 days to respond using the FORM GST REG-22. The officer shall put all the information regarding the cancellation or revocation of registration in writing.
   
• The proper authority must make a decision within 30 days of receiving the applicant's clarification in FORM GST REG-24.
   
• Before rejecting a revocation application, a concerned GST officer must issue a notification in FORM GST REG-23 if the officer is unsatisfied with the application. Within seven working days of the day the notice was served, the applicant must provide an acceptable response in FORM GST REG-24. Within 30 days of the date they received a response from the applicant, the responsible officer should, upon receiving an appropriate response, issue a suitable order in FORM GST REG-05.

Consequences of Not Applying for New GST Registration

If the taxpayer does not request a revocation of the cancelled GST registration after it has been cancelled, then the repercussions will befall him/her. The application for a new GST registration will be declared "deficient" under Rule 9 of the CGST Rules 2017 and the proper officer will reject the application as a result if the conditions outlined in Sections 29(2)(b) and (c) are still in effect.

As a result, when their prior registration was suo moto cancelled, taxpayers who failed to comply with the GST regulations and filing requirements will have a very difficult time getting a new registration.

Conclusion

The consequences will befall the taxpayer if they do not ask for the cancellation of their cancelled GST registration after it has been revoked. If the conditions listed in Sections 29(2)(b) and (c) are still present, the application for a new GST registration will be deemed "deficient" under Rule 9 of the CGST Rules 2017 and the proper official will reject the application as a result.

As a result, taxpayers who disregarded the GST rules and filing obligations will find it extremely challenging to obtain a new registration after their old registration was suo moto revoked.