Revocation of Cancellation of GST Registration

The Goods and Services Tax (GST) regime in India mandates that every business with taxable turnover beyond the threshold limit must obtain GST registration. However, a GST registration may be cancelled either voluntarily by the taxpayer or by the tax authorities due to non-compliance, non-filing of returns or other legal violations.

But what if a business wishes to restore its cancelled GST registration?

This is where the revocation of cancellation of GST registration becomes relevant. In this blog, we explain what revocation means, who is eligible, the latest timelines and the complete procedure as per the CGST Act, 2017 and CGST Rules, 2017.

What is Revocation of Cancellation of GST Registration?

Revocation means restoring a previously cancelled GST registration.

If a taxpayer’s registration has been cancelled by the proper officer on their own motion (Suo motu), the taxpayer can apply to have it reinstated, provided all pending compliances are completed.

Note: Revocation cannot be applied where the taxpayer has voluntarily cancelled their registration.

Legal Provision

The provisions governing revocation are contained in:

• Section 30 of the Central Goods and Services Tax (CGST) Act, 2017
• Rule 23 of the CGST Rules, 2017

Section 30 empowers the proper officer to revoke cancellation of registration on application by the taxpayer within the prescribed time.

Rule 23 lays down the detailed procedure, eligibility, forms and timelines for seeking such revocation, including the requirement that all returns and dues be cleared before applying.

Reasons for Cancellation of GST Registration

Before understanding revocation, it’s useful to know the major reasons for which an officer may cancel registration under Section 29(2):

• Non-filing of the GST returns for a continuous period (commonly six months)
• Failure to commence business within six months of registration
• Issue of invoices without actual supply (fake invoicing)
• Violation of provisions of the GST Act or Rules
• Not conducting business from the declared place of business
• Voluntary cancellation in case of closure, merger or transfer

Only officer-initiated cancellations are eligible for revocation.

Eligibility for Revocation

A taxpayer can apply for revocation if:

• The GST registration was cancelled by the proper officer, not voluntarily.
• All pending returns up to the date of cancellation have been furnished.
• All dues, including tax, interest and penalty, have been paid.
• The application is filed within the prescribed or extended time limit.

Updated Time Limit for Filing Revocation Application (Effective 1 October 2023)

The earlier time limit to apply for the revocation was 30 days, which were extendable by the higher authorities up to 90 days. However, this has been amended via Notification No. 38/2023 – Central Tax, dated 4 August 2023, which is effective from 1 October 2023.

As per the amended Rule 23:

• The taxpayer must apply for revocation within 90 days from the date of service of the cancellation order.
• The Commissioner or officer authorised by him (not below the rank of Additional / Joint Commissioner) may, for reasons recorded in writing, extend this period by up to 180 days if satisfied that sufficient cause exists.

Hence, in deserving cases, a maximum period of 270 days (90 + 180) may be available.

Authority to Extend the Time Limit

• Base period: 90 days from the date of service of the cancellation order.
• Extension: Up to an additional 180 days, if granted by the Commissioner or Additional/Joint Commissioner authorised by him.
• No further extension is permissible beyond 270 days in total.

Step-by-Step Procedure for Revocation of Cancellation

The process is completely online through the GST portal.

Step 1: Log in to the GST Portal

Visit www.gst.gov.in and log in with valid credentials.

Step 2: Navigate to the Revocation Application

Go to: Services → Registration → Application for Revocation of Cancelled Registration

Step 3: Enter Reason and Upload Documents

Provide the reason for revocation in detail and upload supporting documents (proof of return filing, challans for tax payment, etc.).

Step 4: Submit Form GST REG-21

Submit the application electronically. An Acknowledgment Reference Number (ARN) will be generated.

Step 5: Officer’s Verification

The proper officer examines the application.

• If satisfied, an order in Form GST REG-22 is issued within 30 days from the receipt of the application.
• If not satisfied, a notice in Form GST REG-23 is issued seeking clarification.

Step 6: Reply to Notice (if issued)

The taxpayer must reply in Form GST REG-24 within 7 working days, attaching explanations or additional documents.

Step 7: Final Order

Based on the reply: -

• Approval: Officer revokes cancellation (Form REG-22).
• Rejection: Officer issues Form REG-05 with reasons.

In case of rejection, the taxpayer may file an appeal under Section 107 of the CGST Act before the appellate authority.

Filing of Pending Returns Before and After Revocation

Filing of returns is a mandatory pre-condition for revocation.

• Before Applying: All returns up to the date of cancellation must be filed, and any tax, interest or penalty due must be paid before submitting Form REG-21.
• After Revocation: As per Rule 23(2), once the registration is restored, the taxpayer must also file all returns due between the date of cancellation and the date of revocation order within 30 days from the date of such order (or from the effective date if the cancellation was retrospective).

Effect of Revocation

Once revocation is approved, the GST registration is deemed to be valid from the date of cancellation. In other words, it is as if the registration was never cancelled.

All supplies made during the intervening period become taxable and the taxpayer must issue valid tax invoices and discharge GST liability accordingly.

Consequences of Not Applying for Revocation

If the taxpayer fails to apply for revocation within the prescribed or extended time: -

• The registration remains permanently cancelled.
• The business cannot legally collect GST or claim Input Tax Credit (ITC).
• Continuing operations without valid registration may attract penalties.
• The only alternative is to apply for a new GST registration, which will be treated as a fresh GSTIN, with no right to carry forward the earlier ITC.

Important Points to Remember

• Revocation is available only for officer-initiated cancellations, not voluntary ones.
• File all pending returns and pay dues before applying.
• Apply within 90 days, extendable up to 180 days by the Commissioner or authorised officer.
• All forms and communications - REG-21, REG-22, REG-23, REG-24, REG-05 are handled online through the GST portal.
• Track application status under Services → User Services → View My Applications.
• Keep all acknowledgment copies for records.

Conclusion

The revocation of cancellation of GST registration offers an important opportunity for the businesses to restore compliance and resume lawful operations. Many taxpayers miss this chance due to a lack of awareness about the 90-day filing period and the mandatory pre-filing of returns.

By promptly clearing dues, filing pending returns and submitting the revocation application within the allowed window (or obtaining the authorised extension), a business can easily regain its GST registration and maintain uninterrupted credibility.

Remember, GST compliance is both a legal duty and a mark of reliability. Maintaining an active registration enhances the trust of suppliers, customers and authorities alike.