Rescuing Your GST Registration from Cancellation

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. GST registration is mandatory for businesses whose annual turnover exceeds Rs. 40 lakhs. However, there may be instances where the GST registration of a business is cancelled by the authorities due to non-compliance with GST laws. In this article, we will discuss the reasons why GST registration can be cancelled and the steps businesses can take to rescue their GST registration from cancellation.

Reasons for Cancellation of GST Registration

The GST authorities can cancel the registration of a business if they find that the business is not complying with the provisions of the GST laws. Some of the reasons for cancellation of GST registration are:

1. Non-filing of GST Returns: One of the primary reasons for cancellation of GST registration is non-filing of GST returns. Every registered person is required to file GST returns on time, failing which their registration may be cancelled.
2. Non-payment of GST: Another reason for cancellation of GST registration is non-payment of GST. Registered businesses are required to pay GST on time, failing which their registration may be cancelled.
3. Non-maintenance of Records: Businesses are required to maintain proper books of accounts and records in order to comply with the provisions of the GST laws. Failure to maintain proper records can lead to cancellation of GST registration.
4. Non-Compliance with GST Laws: Any non-compliance with the provisions of the GST laws, such as charging GST when not required, can lead to cancellation of GST registration.

Steps to Rescue GST Registration from Cancellation

If a business’s GST registration has been cancelled, it is important to take the necessary steps to rescue the registration. The following steps can be taken to rescue GST registration from cancellation:

1. File an Application for Revocation: The first step is to file an application for revocation of cancellation of GST registration. The application must be filed within 30 days from the date of cancellation of registration.
2. Rectify the Non-Compliance: In order to rescue the GST registration, the business must rectify the non-compliance that led to cancellation of registration. For example, if the registration was cancelled due to non-filing of GST returns, the business must file all pending returns and pay the outstanding tax dues.
3. Pay the Late Fee and Penalty: If the registration was cancelled due to non-filing of returns or non-payment of tax, the business must pay the late fee and penalty as applicable.
4. Submit Documents: The business must submit all the necessary documents required for revocation of cancellation of GST registration. These documents may include the application for revocation, proof of payment of tax dues, and any other documents as required by the authorities.
5. Follow-up with the Authorities: After submitting the application for revocation, the business must follow up with the GST authorities to ensure that the registration is reinstated. The authorities may require additional information or documents, which must be provided promptly.

Conclusion

GST registration is mandatory for businesses whose annual turnover exceeds Rs. 40 lakhs. However, non-compliance with the provisions of the GST laws can lead to Revocation of Cancellation of GST Registration. Businesses whose GST registration has been cancelled can take the necessary steps to rescue the registration, such as filing an application for revocation, rectifying the non-compliance, paying the late fee and penalty, and submitting the necessary documents. It is important to follow up with the GST authorities to ensure that the registration is reinstated. By taking these steps, businesses can rescue their GST registration from cancellation and continue to operate legally under the GST laws.