GST registration is mandatory for all businesses involved in the supply of goods or services in India. The registration process is relatively simple, and once registered, the business is required to comply with various provisions under the GST laws. However, if the business fails to comply with the provisions, the GST registration may be cancelled by the tax authorities. In this article, we will discuss the reasons for cancellation of GST registration and the steps that can be taken to rescue it.
Reasons for Cancellation of GST Registration
The GST registration can be cancelled by the tax authorities for various reasons, including
Non-Filing of GST Returns
- One of the most common reasons for cancellation of GST registration is the non-filing of GST returns. As per the GST laws, every registered person is required to file GST returns on time. If the registered person fails to file the GST returns for a continuous period of six months, the GST registration may be cancelled.
Non-Payment of GST Dues
- Another reason for cancellation of GST registration is the non-payment of GST dues. As per the GST laws, every registered person is required to pay the GST dues on time. If the registered person fails to pay the GST dues for a continuous period of three months, the GST registration may be cancelled.
Providing False Information
- If a registered person provides false information during the registration process or while filing the GST returns, the GST registration may be cancelled.
Closure of Business
- If the registered person has closed the business or has ceased to operate, the GST registration may be cancelled.
Steps to Rescue the GST Registration
If your GST registration has been cancelled, you can still rescue it by following the steps given below:
File an Application for Revocation
- The first step to rescue your GST registration is to file an application for revocation. The application should be filed within 30 days from the date of cancellation of registration. The application should be filed in FORM GST REG-21 on the GST portal. The application should provide the reasons for the cancellation of registration and the steps taken to rectify the non-compliance.
Submit Necessary Documents
- Along with the application for revocation, the registered person is required to submit the necessary documents. The documents that are required to be submitted may vary depending on the reason for cancellation of registration. For instance, if the registration has been cancelled due to non-filing of GST returns, the registered person may be required to submit the pending GST returns.
Pay Pending Dues
- If the registration has been cancelled due to non-payment of GST dues, the registered person should pay the pending GST dues along with the interest and penalty. Once the dues are paid, the registered person can file an application for revocation.
- After receiving the application for revocation, the tax authorities may schedule a hearing to examine the case. The registered person should attend the hearing and provide the necessary explanations for the non-compliance. The tax authorities will examine the case and pass an order on the application.
Compliance with Orders
- If the tax authorities grant the application for revocation, the registered person should comply with the orders passed by the tax authorities. For instance, if the tax authorities order the payment of pending GST dues, the registered person should pay the dues within the stipulated time.
In conclusion, GST Revocation registration is an important compliance requirement for all businesses in India. If the registration is cancelled, it can have severe consequences for the business. However, by following the steps mentioned above, the registered person can rescue the GST registration from cancellation. It is advisable to comply with the GST laws and file the GST returns on time to avoid the cancellation of registration.