Sandipan Mitra is the CEO and co-founder of Pice. He boasts eight years of experience in the B2B and fintech sector. Sandipan's journey includes significant roles at multiple Indian Unicorns Including Product at PayU, and as founding member / VP, Product at Open Financial Technologies.
Form GST REG-28 is used by tax authorities to cancel provisional GST registration after issuing a show-cause notice in REG-27.
It comes into play when the information in Form GST REG-26 is found to be incorrect or incomplete during GST migration.
A taxpayer gets an opportunity to reply to REG-27 before cancellation is confirmed through REG-28.
The format of GST REG-28 includes ARN, reasons for cancellation, tax liabilities, officer details, and penalties.
Timely compliance with GST registration and migration rules helps businesses avoid cancellation and ensure uninterrupted ITC benefits.
If the information or particulars, specified under the sub-rule (2), are not furnished or are found to be incorrect or incomplete – the appropriate officer may proceed to issue an order via Form GST REG 28 and cancel the provisional registration which had been granted under sub-rule (1). However, this step can be completed only after:
They serve a notice for rejection or notice for cancellation to show cause in FORM GST REG-27;
Allowing the concerned registered person an opportunity to be reasonably heard.
This blog shall discuss the relevance of Form GST REG 28, its format and more.
Provisional Registration
Upon enrolling, the taxable person shall get a provisional certificate of registration via FORM GST REG-25, which shall feature the GSTIN. Depending on whether or not a registered person has had several registrations under the previous law on a single PAN basis, they will be granted only one provisional registration under the GST system.
An individual possessing centralised registration under the service tax system shall be granted one GST provisional registration within the State in which they are registered under the service tax.
Final Registration & the Relevance of Form GST REG 28 in the Context of GST Migration
If an individual is required to register under GST in India; or they choose to voluntarily register under it, they will have to electronically submit an application for registration via FORM GST REG–26. All necessary information should be furnished within a 3-month-long period. This step comes under business compliances that must be followed for smooth operation.
Provided that the information given by the individual is correct and complete – GST registration will finally be granted via FORM GST REG-06.
However, if the information provided is found to be not correct or complete, the appropriate officer shall have to issue a show-cause notice via FORM GST REG-27. Following this, an opportunity to present their own case is extended to the concerned person. Only after this, the provisional registration may face rejection of application and be cancelled in FORM GST REG-28, given that the response is not satisfactory.
Note that if the applicant’s reply is satisfactory, the previously issued show cause notice can be nullified by issuing an order via FORM GST REG-20. This action reflects efforts to optimise ITC and maintain compliant business practices.
If a taxable person, who is already registered under the existing laws, is not liable for registration under the GST ACT; they may cancel their provisional registration. This, however, has to be done within 30 days from the appointed day.
They must submit an application for cancellation via FORM GST REG-29 electronically, through the Common Portal, for registration cancellation. This falls under necessary direct tax compliance.
Following a necessary enquiry conducted by the relevant officer, the registration shall be cancelled. The application type and reason should be clearly stated in the form.
About Migration to GST
Understanding the process of migration to GST is crucial, especially clearing the concepts surrounding provisional registration and final registration. Any registered person under VAT/excise/service tax shall have to file an application for enrollment on the Common Portal.
This can be done by validating one’s e-mail address and phone number, directly or through a Facilitation Centre (as per notification by the commissioner).
This Application for Enrolment is part of essential business compliances and streamlines vendor payments and vendor management.
Here is how the process of migration to GST works:
Step 1: Enrol through the Common Portal.
Step 2: One shall get their Provisional Registration through Form GST REG-25. After this stage, one can assume one of two routes:
a. Submit the documentation and application for registration for final approval via Form GST REG-28. This then is scrutinised by the appropriate authority who may issue a notice for rejection in case he detects inconsistencies (via Form GST REG-25). After the reply is considered, registration is cancelled via Form GST REG-28 if unsatisfactory. If valid, a certificate may be granted.
b. If GST is not applicable, submit Form GST REG-29 (i.e., an Application for cancellation) within 30 days from the appointed date.
What happens if an Individual is required to migrate to GST but Fails to Do So?
If an individual is required to migrate to GST but fails, they cannot claim the ITC (Input Tax Credit) on excise and VAT already paid on stocks. Failing to file an Application for Intimation or Application for Registration means they have committed an offence and will face penalties.
Such failures directly impact business compliances and may complicate processes such as retrieval services, filing Refund forms, and managing E-Way Bill records.
In this form, here are the various components you need to be aware of:
Sections for your name, address, date, and GSTIN/Provisional ID.
Unique Application Reference Number (ARN) is mentioned.
In this ‘Order for cancellation of provisional registration,’ reasons for cancellation are stated, alongside key dates and officer details.
The amount payable by the concerned party will be included.
The deadline for payment is stated, failing which penalties will apply under the Act and rules.
A table will show tax liabilities under headers like 'Tax', 'Interest', 'Penalty', 'Others', and 'Total'. These are divided into Central Tax, State Tax, UT Tax, Integrated Tax, and Cess.
Place, date, designation, and officer’s signature complete the document.
You can download the PDF document version of Form GST REG-28 from the Common Portal for further reference under Registration Forms.
Conclusion
If the details provided are found to be not correct or complete, the officer will issue a show cause notice in FORM GST REG-27. Following this, the application for revocation may be submitted if cancellation occurs unjustly.
Following this, the provisional registration shall be cancelled in Form GST REG-28, given that the response is not satisfactory. This gives taxpayers a chance to correct the record and resume normal operations.
Providing valid reasons and supporting documentation may lead to the rejection of application being overturned and Form GST REG-20 being issued instead. That way, you can continue filing returns and operating your business lawfully.
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FAQs
What is Form GST REG-28 under GST?
Form GST REG-28 is an order for cancellation of provisional GST registration issued by the proper officer when the taxpayer fails to provide correct or complete details. It is issued only after a show-cause notice in Form GST REG-27 and an opportunity of being heard. This form finalizes the cancellation process, ensuring only compliant businesses continue under GST.
When is Form GST REG-28 issued?
This form is issued during GST migration or registration verification, when the information furnished in Form GST REG-26 is found to be incomplete, false, or inconsistent. Before issuing REG-28, the tax officer first serves a notice in REG-27. If the reply is unsatisfactory, the provisional registration is formally cancelled via REG-28.
What details are included in Form GST REG-28?
The format of GST REG-28 includes details like the taxpayer’s name, address, GSTIN/Provisional ID, and ARN (Application Reference Number). It also specifies reasons for cancellation, the officer’s designation and signature, and any tax liabilities such as tax, penalty, interest, or cess. This detailed order ensures transparency in cancellation proceedings.
Can a taxpayer avoid cancellation under Form GST REG-28?
Yes, cancellation through REG-28 can be avoided if the taxpayer provides a satisfactory reply to the show-cause notice in REG-27. By submitting correct documents, clarifications, or amendments, the officer may withdraw the notice and instead issue Form GST REG-20, allowing the taxpayer to retain their registration and continue business operations smoothly.
What happens if provisional GST registration is cancelled via Form GST REG-28?
If the provisional registration is cancelled under REG-28, the taxpayer loses their GSTIN and ability to claim Input Tax Credit (ITC). In such cases, they must file a fresh application for GST registration to resume lawful business operations. Timely compliance and accurate filing during GST migration are crucial to avoid this disruption.
Sandipan Mitra is the CEO and co-founder of Pice. He boasts eight years of experience in the B2B and fintech sector. Sandipan's journey includes significant roles at multiple Indian Unicorns Including Product at PayU, and as founding member / VP, Product at Open Financial Technologies.
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