Did you know? Not complying with the regulations mentioned under the “Goods and Services Tax Act” can result in your GST registration being cancelled. Read on to know the reasons for GST registration cancellation and tips on cancelled GST revocation.
Following the announcement of Budget 2022, the amendment to Section 29 of the CGST Act mentions that a GSTIN officer can cancel a GST registration if:
•A regular taxpayer fails to file returns for six consecutive months
•A taxpayer falling under the composition scheme doesn’t file returns for three consecutive tax periods
•Business operators fail to produce correct bills of supply or tax invoices upon investigation
•Business owners who have voluntarily registered under the GST framework don’t commence operations for more than six months after receiving their GST registration number
•The customers are charged regular prices, despite any price reduction or exemption listed under the GST
•Businesses don’t operate from the location specified in their registration
•Taxpayers fail to provide their bank account details within 45 days of filing their first return or getting their GSTIN. It is one of the most common reasons for GST cancellation, registered under Section 49 of the CGST Act.
•Your annual turnover is less than the threshold income
Besides these, taxpayers can apply for GST cancellation on their own or the heirs can request a cancellation in case of the business owner’s death.
If your business is registered under the GST and you happen to violate any of the conditions for registration, the authorities are likely to inquire about your case. You’ll be given an opportunity to explain the violation and reapply for GST registration after cancellation. However, if you feel that your GST registration has been cancelled for unfair reasons, you could challenge the notices issued by the GSTIN officer in court.
The GST registration rules are frequently amended each year; therefore, sometimes, registered taxpayers may not know them and end up committing violations. Business owners can hire a CA for cancelled GST revocation, so that they maintain all compliance requirements and don’t miss any deadlines.
What After GST Registration Cancellation?
If your GST registration is cancelled, you:
•Can’t claim the input tax credit, pay or collect GST
•Can’t file GST returns
•May have to pay a heavy penalty if GST registration is mandatory for your business.
What To Do If You Receive A GST Cancellation Notice.
Business owners have to visit the official GST portal and furnish a valid reason for their violation. They’ll have to supply a copy of invoices issued in the month of cancellation and file Form GST REG-16. They need to include details like liabilities, goods in stock and circulation, payments, etc., in the form. LLPs and companies have to submit the form that is signed with the DSC, whereas partnership firms and sole proprietors have to submit the form that is signed with the EVC.
How To Manage A Cancelled GST Revocation?
For revocation of a cancelled GST, the registered taxpayer needs to fill out the GST REG-21 form, which needs to be submitted within 30 days of cancellation. If the GSTIN officer is satisfied with the reasons and documents furnished by the taxpayer, they may revoke the cancellation or reject the application if they are unsatisfied.
Hiring a CA for a cancelled GST revocation increases the likelihood of your application being accepted without any glitch, as they ensure all forms and documents are in place. We, at Shivaay Associates, are experts in GST registration, GST return filing, and cancelled GST revocation. Get in touch with us for GST-related enquiries.