Revocation of Cancellation of GST Registration

Revocation of Cancellation of GST Registration. Has your GST registration been cancelled, leaving you uncertain about the next steps? Whether it was cancelled due to failure in filing returns, prolonged business inactivity, or a voluntary application, losing GST registration can cause serious operational setbacks. The encouraging part is that you can still restore your registration—even if it has remained inactive for years. In this article, we’ll walk you through a step-by-step process on how to revoke the cancellation and reactivate your GST registration smoothly and efficiently.
What is GST Registration?
GST registration is the official process through which a business becomes part of India’s Goods and Services Tax system. It is mandatory for businesses that exceed the prescribed turnover limits or are involved in interstate supply of goods and services. Once registered, the business is allotted a unique 15-digit Goods and Services Tax Identification Number (GSTIN) by the GST authorities.
GSTIN enables businesses to file returns, collect taxes, claim input tax credit (ITC), and issue GST-compliant invoices. It is an essential requirement for maintaining credibility, ensuring tax compliance, and availing various benefits under the GST framework. Without a valid GST registration, businesses risk legal and financial complications.
What Does GST Cancellation Mean?
GST cancellation refers to the deactivation of a GSTIN, which means the business is no longer recognized as a registered taxpayer under the GST law. When GST registration is cancelled, the business is not allowed to collect GST from customers or claim input tax credit. It also loses the ability to file regular returns and issue valid GST invoices.
There are two types of GST cancellation:

Voluntary Cancellation by the Taxpayer: A taxpayer can apply to cancel the registration when they close their business, change the business structure, or fall below the GST threshold.

Cancellation by Tax Authorities: The authorities may cancel registration due to non-compliance, such as non-filing of returns, fraudulent activities, or failure to commence business after registration.

Why GST Registration may be cancelled?
A GST registration can be cancelled for various reasons. Some of the most common include:

When a business shuts down operations permanently.

When a business is sold or merged into another entity.

For example, when a partnership firm becomes a private limited company.

When the annual turnover falls below the GST threshold, the taxpayer can opt for cancellation.

Regular taxpayers failing to file returns for six months or composition taxpayers missing returns for three months.

If registration was obtained using false documents or misleading information.

Impact of a Cancelled GST Registration
Cancellation of GST registration can severely impact a business's operations. Some major consequences include:

Inability to collect GST legally, leading to possible penalties if continued.

Loss of input tax credit, increasing the cost of goods and services.

Inability to issue GST-compliant invoices, potentially leading to a loss of business credibility.

Difficulties in maintaining customer and vendor relationships.

Revocation of GST Registration
Revocation is the process through which a cancelled GST registration is restored. This process allows businesses to resume their GST obligations and benefits under the law. Revocation applies only when the cancellation was initiated by the tax department, not when voluntarily cancelled by the taxpayer.
If the taxpayer addresses the reasons for cancellation—such as by filing pending returns and paying dues—they can apply for revocation through the GST portal using Form GST REG-21.
Can Voluntarily Cancelled GST Registration be Reactivated?
No, voluntarily cancelled GST registrations cannot be reactivated. Once a taxpayer cancels their registration voluntarily, it is considered final. If the business wants to resume operations under GST, they must apply for a new GST registration entirely.
What happens if GST Registration is not reactivated?
Not reactivating a cancelled GST registration can lead to several problems:

The business cannot issue GST-compliant invoices, limiting its operations.

Businesses lose the ability to claim input tax credit on purchases, increasing costs.

Collecting GST without valid registration is illegal and may attract heavy fines.

An inactive GST registration may reduce business credibility in the eyes of stakeholders.

Time Limit for Revocation of Cancelled GST Registration
As per the latest update effective from October 1, 2023, the time limit to apply for revocation has been extended to 90 days from the date of the cancellation order. This extension provides more time for businesses to comply with the necessary requirements and file for revocation.
Documents Required to Reactivate Cancelled GST Registration
To reactivate your GST registration, especially if it has been inactive for years, you must prepare and submit the following documents:

GSTIN and Login Credentials: To access your GST account and initiate the process.

PAN Card: PAN of the business entity or proprietor, as registered under GST.

Address Proof: Electricity bill, rent agreement, or property documents showing the business address.

Bank Details: Cancelled cheque, bank passbook, or bank statement.

Filed GST Returns: Copies or receipts of filed GST returns during the period of inactivity.

Application for Revocation (Form GST REG-21): The main application to request reactivation.

Penalties and Late Fees
The revocation process may involve the payment of late fees and penalties:

Late Filing Fees: Rs.50 per day (Rs.25 each under CGST and SGST), up to Rs.10,000 per return.

Interest on Tax Dues: 18% per annum on the pending amount.

Additional Penalties: May apply in case of fraudulent or deliberate non-compliance.

Form GST REG-21: Application for Revocation
Form GST REG-21 is the designated form for revocation of a cancelled registration. It must be submitted online through the GST portal. Taxpayers must ensure all pending returns are filed and dues are cleared before applying.
The application should clearly state the reasons for revocation and must be accompanied by the necessary documents to support the case. It is important to check the status of your revocation request on the GST portal regularly.
How to Reactivate Your Cancelled GST Registration?
Follow the steps below to successfully reactivate your GST registration through the revocation process:
Step 1: Log in to the GST Portal: Visit the official GST portal and log in using your credentials. If you’ve forgotten your login information, use the 'Forgot Password' feature to reset it.
Step 2: Access the Revocation Option: Go to Services > Registration > Application for Revocation of Cancellation. This option is available only if the cancellation was done by the tax officer.
Step 3: Select the Cancelled GSTIN: Choose your cancelled GST number from the list. Provide the reason for revocation in the required field. Be honest and concise in your explanation.
Step 4: File Pending GST Returns: Before submitting the application, ensure that all outstanding GST returns are filed. This includes payment of tax dues, interest, and late fees. The portal will not accept your application unless compliance is complete.
Step 5: Upload Required Documents: Attach all the necessary documents as discussed earlier—PAN, address proof, bank details, filed return receipts, and Form GST REG-21. Make sure the documents are clear and correctly labeled.
Step 6: Submit the Application: Review all the information and documents before submitting the form. Once submitted, a confirmation message will appear.
Step 7: Wait for Response: The GST department may send queries or requests for additional documents. Keep checking your account and email for updates.
Step 8: Approval of Revocation: If everything is in order, the officer will approve your application, and your GSTIN will be restored. You will receive a confirmation via SMS and email.
Conclusion
Revocation of cancellation of GST registration is a valuable opportunity for businesses to regain compliance and restart operations legally. Though the process may seem detailed, it is completely achievable with proper guidance and timely action. Businesses should keep in mind the required documents, comply with pending dues, and use the official Form GST REG-21 for submitting the request.
If you are looking to reactivate your cancelled GST registration, the team at Compliance Calendar LLP is ready to help you every step of the way—from documentation to application and follow-up. Let us handle the complexities while you focus on your business.
Reactivate Your Cancelled GST Registration today and ensure your business stays on the right side of the law. For expert assistance and smooth reactivation, connect with Compliance Calendar LLP.
Email: info@ccoffice.in
Call/Whatsapp: +91 9988424211.
FAQs
Q1. What is revocation of GST registration cancellation?
Ans. Revocation of GST registration cancellation is the process of restoring a previously cancelled GST registration. This is applicable when the registration was cancelled by the GST officer due to non-compliance. The taxpayer must apply online using Form GST REG-21, file all pending returns, and pay applicable dues to restore the registration.
Q2. Can a voluntarily cancelled GST registration be reactivated?
Ans. No, once a GST registration is voluntarily cancelled by the taxpayer, it cannot be reactivated. The cancellation is considered final. If the business resumes operations and needs GST registration again, it must apply for a fresh GST registration through the GST portal.
Q3. What is the time limit to apply for revocation of cancelled GST registration?
Ans. As per the latest update effective from October 1, 2023, the time limit to apply for revocation has been extended to 90 days from the date of the cancellation order. This gives businesses more time to file pending returns, pay dues, and submit Form GST REG-21.
Q4. What documents are required to apply for revocation of cancellation?
Ans. To apply for revocation, you need the following documents:\n- PAN card of the business or proprietor\n- Proof of business address (electricity bill, rent agreement, etc.)\n- Bank details (cancelled cheque or bank statement)\n- Filed GST returns for the cancelled period\n- Application Form GST REG-21
Q5. What are the fees and penalties involved in reactivating cancelled GST registration?
Ans. The following charges may apply:\n- Late filing fees: Rs.50 per day (Rs.25 CGST + Rs.25 SGST), capped at Rs.10,000 per return\n- Interest on unpaid tax: 18% per annum\n- Additional penalties if cancellation was due to fraud or misstatement
Q6. What happens if a business operates without reactivating GST registration?
Ans. Operating without a valid GST registration is illegal. The business cannot collect GST, issue GST invoices, or claim Input Tax Credit (ITC). If caught, it may face penalties, including the full amount of GST collected without authorization and additional fines or legal action.
Q7. How will I know if my GST registration has been successfully reactivated?
Ans. Once your revocation application is approved, the GST department will send a confirmation via email and SMS. You can also log in to the GST portal and check the status of your application under the “Services > Registration > Track Application Status” section.

Has your GST registration been cancelled, leaving you uncertain about the next steps? Whether it was cancelled due to failure in filing returns, prolonged business inactivity, or a voluntary application, losing GST registration can cause serious operational setbacks. The encouraging part is that you can still restore your registration—even if it has remained inactive for years. In this article, we’ll walk you through a step-by-step process on how to revoke the cancellation and reactivate your GST registration smoothly and efficiently.

What is GST Registration?

GST registration is the official process through which a business becomes part of India’s Goods and Services Tax system. It is mandatory for businesses that exceed the prescribed turnover limits or are involved in interstate supply of goods and services. Once registered, the business is allotted a unique 15-digit Goods and Services Tax Identification Number (GSTIN) by the GST authorities.

GSTIN enables businesses to file returns, collect taxes, claim input tax credit (ITC), and issue GST-compliant invoices. It is an essential requirement for maintaining credibility, ensuring tax compliance, and availing various benefits under the GST framework. Without a valid GST registration, businesses risk legal and financial complications.

What Does GST Cancellation Mean?

GST cancellation refers to the deactivation of a GSTIN, which means the business is no longer recognized as a registered taxpayer under the GST law. When GST registration is cancelled, the business is not allowed to collect GST from customers or claim input tax credit. It also loses the ability to file regular returns and issue valid GST invoices.

There are two types of GST cancellation:

Voluntary Cancellation by the Taxpayer: A taxpayer can apply to cancel the registration when they close their business, change the business structure, or fall below the GST threshold.
Cancellation by Tax Authorities: The authorities may cancel registration due to non-compliance, such as non-filing of returns, fraudulent activities, or failure to commence business after registration.

Why GST Registration may be cancelled?

A GST registration can be cancelled for various reasons. Some of the most common include:

When a business shuts down operations permanently.
When a business is sold or merged into another entity.
For example, when a partnership firm becomes a private limited company.
When the annual turnover falls below the GST threshold, the taxpayer can opt for cancellation.
Regular taxpayers failing to file returns for six months or composition taxpayers missing returns for three months.
If registration was obtained using false documents or misleading information.

Impact of a Cancelled GST Registration

Cancellation of GST registration can severely impact a business's operations. Some major consequences include:

Inability to collect GST legally, leading to possible penalties if continued.
Loss of input tax credit, increasing the cost of goods and services.
Inability to issue GST-compliant invoices, potentially leading to a loss of business credibility.
Difficulties in maintaining customer and vendor relationships.

Revocation of GST Registration

Revocation is the process through which a cancelled GST registration is restored. This process allows businesses to resume their GST obligations and benefits under the law. Revocation applies only when the cancellation was initiated by the tax department, not when voluntarily cancelled by the taxpayer.

If the taxpayer addresses the reasons for cancellation—such as by filing pending returns and paying dues—they can apply for revocation through the GST portal using Form GST REG-21.

Can Voluntarily Cancelled GST Registration be Reactivated?

No, voluntarily cancelled GST registrations cannot be reactivated. Once a taxpayer cancels their registration voluntarily, it is considered final. If the business wants to resume operations under GST, they must apply for a new GST registration entirely.

What happens if GST Registration is not reactivated?

Not reactivating a cancelled GST registration can lead to several problems:

The business cannot issue GST-compliant invoices, limiting its operations.
Businesses lose the ability to claim input tax credit on purchases, increasing costs.
Collecting GST without valid registration is illegal and may attract heavy fines.
An inactive GST registration may reduce business credibility in the eyes of stakeholders.

Time Limit for Revocation of Cancelled GST Registration

As per the latest update effective from October 1, 2023, the time limit to apply for revocation has been extended to 90 days from the date of the cancellation order. This extension provides more time for businesses to comply with the necessary requirements and file for revocation.

Documents Required to Reactivate Cancelled GST Registration

To reactivate your GST registration, especially if it has been inactive for years, you must prepare and submit the following documents:

GSTIN and Login Credentials: To access your GST account and initiate the process.
PAN Card: PAN of the business entity or proprietor, as registered under GST.
Address Proof: Electricity bill, rent agreement, or property documents showing the business address.
Bank Details: Cancelled cheque, bank passbook, or bank statement.
Filed GST Returns: Copies or receipts of filed GST returns during the period of inactivity.
Application for Revocation (Form GST REG-21): The main application to request reactivation.

Penalties and Late Fees

The revocation process may involve the payment of late fees and penalties:

Late Filing Fees: Rs.50 per day (Rs.25 each under CGST and SGST), up to Rs.10,000 per return.
Interest on Tax Dues: 18% per annum on the pending amount.
Additional Penalties: May apply in case of fraudulent or deliberate non-compliance.

Form GST REG-21: Application for Revocation

Form GST REG-21 is the designated form for revocation of a cancelled registration. It must be submitted online through the GST portal. Taxpayers must ensure all pending returns are filed and dues are cleared before applying.

The application should clearly state the reasons for revocation and must be accompanied by the necessary documents to support the case. It is important to check the status of your revocation request on the GST portal regularly.

How to Reactivate Your Cancelled GST Registration?

Follow the steps below to successfully reactivate your GST registration through the revocation process:

Step 1: Log in to the GST Portal: Visit the official GST portal and log in using your credentials. If you’ve forgotten your login information, use the 'Forgot Password' feature to reset it.

Step 2: Access the Revocation Option: Go to Services > Registration > Application for Revocation of Cancellation. This option is available only if the cancellation was done by the tax officer.

Step 3: Select the Cancelled GSTIN: Choose your cancelled GST number from the list. Provide the reason for revocation in the required field. Be honest and concise in your explanation.

Step 4: File Pending GST Returns: Before submitting the application, ensure that all outstanding GST returns are filed. This includes payment of tax dues, interest, and late fees. The portal will not accept your application unless compliance is complete.

Step 5: Upload Required Documents: Attach all the necessary documents as discussed earlier—PAN, address proof, bank details, filed return receipts, and Form GST REG-21. Make sure the documents are clear and correctly labeled.

Step 6: Submit the Application: Review all the information and documents before submitting the form. Once submitted, a confirmation message will appear.

Step 7: Wait for Response: The GST department may send queries or requests for additional documents. Keep checking your account and email for updates.

Step 8: Approval of Revocation: If everything is in order, the officer will approve your application, and your GSTIN will be restored. You will receive a confirmation via SMS and email.

Conclusion

Revocation of cancellation of GST registration is a valuable opportunity for businesses to regain compliance and restart operations legally. Though the process may seem detailed, it is completely achievable with proper guidance and timely action. Businesses should keep in mind the required documents, comply with pending dues, and use the official Form GST REG-21 for submitting the request.

If you are looking to reactivate your cancelled GST registration, the team at Compliance Calendar LLP is ready to help you every step of the way—from documentation to application and follow-up. Let us handle the complexities while you focus on your business.

Reactivate Your Cancelled GST Registration today and ensure your business stays on the right side of the law. For expert assistance and smooth reactivation, connect with Compliance Calendar LLP.

Email: info@ccoffice.in

Call/Whatsapp: +91 9988424211.

FAQs

Q1. What is revocation of GST registration cancellation?

Ans. Revocation of GST registration cancellation is the process of restoring a previously cancelled GST registration. This is applicable when the registration was cancelled by the GST officer due to non-compliance. The taxpayer must apply online using Form GST REG-21, file all pending returns, and pay applicable dues to restore the registration.

Q2. Can a voluntarily cancelled GST registration be reactivated?

Ans. No, once a GST registration is voluntarily cancelled by the taxpayer, it cannot be reactivated. The cancellation is considered final. If the business resumes operations and needs GST registration again, it must apply for a fresh GST registration through the GST portal.

Q3. What is the time limit to apply for revocation of cancelled GST registration?

Ans. As per the latest update effective from October 1, 2023, the time limit to apply for revocation has been extended to 90 days from the date of the cancellation order. This gives businesses more time to file pending returns, pay dues, and submit Form GST REG-21.

Q4. What documents are required to apply for revocation of cancellation?

Ans. To apply for revocation, you need the following documents:\n- PAN card of the business or proprietor\n- Proof of business address (electricity bill, rent agreement, etc.)\n- Bank details (cancelled cheque or bank statement)\n- Filed GST returns for the cancelled period\n- Application Form GST REG-21

Q5. What are the fees and penalties involved in reactivating cancelled GST registration?

Ans. The following charges may apply:\n- Late filing fees: Rs.50 per day (Rs.25 CGST + Rs.25 SGST), capped at Rs.10,000 per return\n- Interest on unpaid tax: 18% per annum\n- Additional penalties if cancellation was due to fraud or misstatement

Q6. What happens if a business operates without reactivating GST registration?

Ans. Operating without a valid GST registration is illegal. The business cannot collect GST, issue GST invoices, or claim Input Tax Credit (ITC). If caught, it may face penalties, including the full amount of GST collected without authorization and additional fines or legal action.

Q7. How will I know if my GST registration has been successfully reactivated?

Ans. Once your revocation application is approved, the GST department will send a confirmation via email and SMS. You can also log in to the GST portal and check the status of your application under the “Services > Registration > Track Application Status” section.