The Goods and Services Tax (GST) has completely reshaped the Indian tax scene. Think of GST as this broad-based, all-encompassing indirect tax system that got rid of many older taxes, making the system of taxation for goods and services across the nation more straightforward.
If you want to know how to appeal of revocation of cancellation in GST, you have landed on the right page. However, it is crucial to remember the appeal procedure if your GST registration gets yanked. That way, businesses can protect their interests.
Reasons for Cancellation of GST Registration
There are various reasons for the cancellation of GST registration, such as:
- Non-filing of returns for a continuous period of six months or more
- Non-commencement of business within six months from the date of registration
- Closure or transfer of business
- Change in the constitution of business
- Any other reason as prescribed by the law
After the cancellation of the GST registration, the taxpayer will no longer be able to gather or claim input tax credit, issue tax bills, or submit GST returns. Also, the taxpayer will be required to cover any potential tax liability that might come up due to the cancellation.
However, if a taxpayer feels upset or unjustly treated by the cancellation of his GST registration, he isn’t without recourse. He can actually file an appeal for the revocation of the cancellation in GST, requesting the tax authorities to reinstate his GST registration so he can continue his business under GST rules.
How to File Appeal in GST for Revoke of Cancelled?
The process of filing an appeal for revocation of cancellation in GST is as follows:
- As a taxpayer, you must submit a revocation application for cancellation using the GST REG-21 form. This should be done within a month after receiving the cancellation order.
- The application submission can be done online via the GST portal or physically through an aid center.
- Remember to attach supporting documents that validate your appeal. The application must be directed to the same authority that initially cancelled your registration, that is, the assigned officer.
- This officer will then review your application, potentially asking for more information or clarification within the first 15 days after receiving your application. You’ll need to provide the requested details or clarifications no later than a week after receiving this request from the officer.
- The appropriate official will decide on the Form GST REG-22 application. This decision, which could be acceptance or rejection, will be made within 30 days of receiving the application, additional information, or clarification, whichever comes last.
- If the assigned officer approves the application, they will overturn the cancellation order and reinstate the taxpayer’s GST registration.
- However, if the officer denies the application, they will provide a detailed explanation for the rejection in Form GST REG-05 and notify the taxpayer of their right to contest the rejection order in front of the Appellate Authority.
Businesses selling in India must register for GST. The tax authorities or the taxpayer might terminate GST registration for several reasons. GST registration cancellation might result in lost input tax credit, inability to produce tax invoices, and tax dues. Thus, if the taxpayer disagrees with the cancellation order, he can appeal it in GST within 30 days of service.
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Frequently Asked Questions
1. Is it possible for me to appeal against the revocation of cancellation in GST if I’ve canceled my registration voluntarily?
Absolutely! If you opted to cancel your GST registration, you can still file an appeal to revoke this cancellation. However, to do so, you must have followed all the rules specified by the GST law and, of course, paid all your outstanding tax bills.
2. What are the consequences if I do not file an appeal for revocation of cancellation in GST within 30 days?
If you don’t submit an appeal to overturn the cancellation of your GST registration within a 30-day window, your registration will stay canceled. This will prevent you from performing any taxable supplies under GST. Plus, you’ll still have to pay any tax obligations that might surface because of the cancellation.
3. Can I file an appeal for revocation of cancellation in GST offline?
No, you cannot file an appeal for revocation of cancellation in GST offline. You must file it online on the GST portal or through a facilitation center.
4. What documents are required to file an appeal for revocation of cancellation in GST?
The documents required to file an appeal for revocation of cancellation in GST may vary depending on the reason for cancellation and the grounds of appeal. However, some common documents are:
- Copy of the cancellation order
- Copy of the acknowledgment receipt of filing Form GST REG-21
- Copy of Form GSTR-3B and GSTR-1 filed to date
- Copy of balance sheet and profit and loss account
- Copy of bank statement
- Any other document, as requested by the proper officer
5. Can I appeal against the rejection order passed by the proper officer?
Yes, you can file an appeal against the rejection order passed by the proper officer within three months from the date of communication of the order. You must file the appeal before the Appellate Authority in Form GST APL-01, along with the prescribed fees and documents.
6. What are the chances of success of my appeal for revocation of cancellation in GST?
The chances of success of your appeal for revocation of cancellation in GST depend on various factors, such as:
- The reason for the cancellation of your registration
- The grounds for your appeal
- The evidence and documents submitted by you
- The discretion and judgment of the proper officer and the Appellate Authority
Therefore, it is advisable to consult a professional before filing an appeal for revocation of cancellation in GST.