- Introduction
As per Section 30(1) of the CGST Act,2017 read with Rule 23 of the CGST Rules, 2017 , any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the FORM GST REG-21 within thirty days from the date of service of the cancellation order.
As per proviso(s) to Rule 23(1) of the CGST Rules, 2017, in case the registration has been cancelled due to non filing of returns the application of registration can be filed only after furnishing of returns and payment of tax, interest, penalty and late fee. Further the returns for the period from date of order of cancellation of registration till the date of order of revocation of cancellation of registration shall be furnished within 30 days from date of such order.
Further as per Section 30(2) of the CGST Act, 2017 read with Rule 23(2), (3) and (4) of the CGST Rules, 2017, the proper officer if satisfied,can revoke the cancellation of registration by an order in FORM GST REG-22 within a period of 30 days from date of receipt of application. Else it may reject the application in FORM GST REG-05 before providing an opportunity to the applicant.
It is pertinent to mention here that section 107(1) of the said Act provides for filing appeal by any person aggrieved by any decision or order passed by an adjudicating authority within three months from the date on which the said decision or order is communicated to such person and section 107(4) of the said Act empowers the Appellate Authority that it may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of one month.
2. Large number of tax payers couldnt file application for revocation of cancellation on time
Large number of registrations have been cancelled under section 29(2) of the CGST Act, suo moto by the proper officer by serving notices as per clause (c) and clause (d) of section 169(1) of the said Act and the period of thirty days provided for application for revocation of cancellation order in section 30(1) of the said Act, the period for filing appeal under section 107(1) of the said Act and also the period of condoning the delay provided in Section 107(4) of the said Act has elapsed
The registered persons whose registration have been cancelled under clause (b) or clause (c) of section 29(2) of the said Act viz composition supplier not furnished returns for three consecutive tax periods and other tax payers not furnished return for continuous period of six months, are unable to get their cancellation of registration revoked despite having fulfilled all the requirements for revocation of cancellation of registration.
The CGST Act being a new Act, these taxpayers could not apply for revocation of cancellation within the specified time period of thirty days from the date of service of the cancellation order, as a result whereof certain difficulties have arisen in giving effects to the provisions of section 30(1) of the said Act.
3. One time extension in period for seeking revocation of registration cancelled due to non filing of returns
Considering the above, the GST Council in its 40th meeting held on 12th June, 2020 had taken decision to provide a one time extension in period for seeking revocation of cancellation of registration.
In consonance to above decision Order No. 01/2020- Central Tax dated 25th June, 2020 has been issued wherein in exercise of the powers conferred by section 172 of the CGST Act, 2017, the Central Government, on the recommendations of the Council, notified the CGST (Removal of Difficulties) Order, 2020.
Vide above order for the removal of difficulties, it is clarified that for the purpose of calculating the period of thirty days for filing application for revocation of cancellation of registration under section 30(1) of the Act for those registered persons who were served notice under clause (b) or clause (c) of section 29(2) in the manner as provided in clause (c) or clause (d) of section 169(1) and where cancellation order was passed up to 12th June, 2020, the later of the following dates shall be considered:-
a) Date of service of the said cancellation order; or
b) 31st day of August, 2020.
The above one time extension in period for seeking revocation of cancellation is a golden opportunity for all persons whose registration has been cancelled where order of cancellation has been passed upto 12.06.2020, due to non filing of returns since introduction of GST regime viz 01.07.2020 to 12.06.2020. They can now file application for revocation of registration within 30 days of 31.08.2020 viz upto 30.09.2020.
Needless to mention that as per proviso(s) to Rule 23(1) of the CGST Rules, 2017, revocation of registration would be possible only after filing the pending returns and payment of amount due as tax and applicable interest and late fee.
For ready reference of our readers the complete notification of Order No. 01/2020- Central Tax dated 25.06.2020 is given below:
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
