Navigating the GST Revocation Process

Goods and Services Tax (GST) is a comprehensive indirect tax that replaced multiple indirect taxes levied by the Central and State Governments in India. GST is a destination-based tax, which is levied on every value addition that takes place during the supply chain. All businesses registered under GST are required to comply with various provisions and regulations, failing which they may face penalties and cancellation of their GST registration. In this article, we will discuss the process of GST revocation and the steps involved in it.

What is GST Revocation?

GST Revocation is a process through which a registered taxpayer can cancel their GST registration. It can be done voluntarily by the taxpayer or by the tax authority in case of non-compliance with the GST provisions. Once the GST registration is cancelled, the taxpayer will not be liable to pay GST or file GST returns.

Voluntary GST Revocation

Registered taxpayers can opt for voluntary GST revocation if they are no longer liable to pay GST or if they have ceased to carry out their business activities. In such a case, the taxpayer must apply for the cancellation of their GST registration within 30 days from the date on which the liability to obtain GST registration ceased to exist. The application for voluntary GST revocation can be filed online on the GST portal.

The steps involved in filing the application for voluntary GST revocation are as follows

1. Login to the GST portal using your registered credentials.
2. Navigate to Services > Registration > Application for Cancellation of Registration.
3. Select the reason for cancellation of registration from the drop-down list.
4. Provide the date on which the liability to obtain GST registration ceased to exist.
5. Upload the required documents, such as the final GST return, stock statement, and GST certificate.
6. Submit the application.
7. Once the application is submitted, an acknowledgement will be generated. The status of the application can be tracked using the ARN (Application Reference Number) provided in the acknowledgement.

Non-Voluntary GST Revocation

The tax authority can initiate the process of GST revocation if a registered taxpayer fails to comply with the GST provisions. Non-compliance may include non-filing of GST returns, non-payment of GST, or any other violation of GST laws. In such cases, the tax authority will issue a notice to the taxpayer and provide them with an opportunity to respond within a specified time.

If the taxpayer fails to respond to the notice, the tax authority may cancel their GST registration. However, if the taxpayer provides a satisfactory response and rectifies the non-compliance within the specified time, the tax authority may drop the proceedings.

The steps involved in the process of non-voluntary GST revocation are as follows

1. The tax authority will issue a notice to the taxpayer, specifying the reasons for initiating the revocation proceedings.
2. The taxpayer must respond to the notice within the specified time, providing a satisfactory explanation and rectifying the non-compliance.
3. If the taxpayer fails to respond to the notice or if the response is not satisfactory, the tax authority may cancel their GST registration.
4. The taxpayer can file an appeal against the cancellation order within 30 days from the date of receipt of the order.

Effect of GST Revocation

Once the GST registration is cancelled, the taxpayer will no longer be required to file GST returns or pay GST. However, the cancellation of GST registration does not absolve the taxpayer of any liability for the period before the date of cancellation. The taxpayer must clear all their pending GST liabilities, including payment of GST and filing of GST returns, before the cancellation of GST registration.

Conclusion

GST Revocation is a process through which a registered taxpayer can cancel their GST registration voluntarily or by the tax authority in case of non-compliance with the GST provisions. The steps involved in the process of GST revocation vary depending on whether it is voluntary or non-voluntary. In both cases, the taxpayer must ensure that all their pending GST liabilities are cleared before the cancellation of GST registration. GST Revocation has a significant impact on the business activities of the taxpayer, as they will no longer be required to comply with various GST provisions and regulations. Therefore, it is essential for the taxpayer to carefully consider the implications of GST Revocation before initiating the process.