Form GST REG 21: Revocation Application Simplified

Under the Goods and Services Tax (GST) regime in India, a taxpayer’s registration can be cancelled by the proper officer for several reasons. They may include non-filing of returns, evasion of provisions, or on voluntary application by the taxpayer.

However, if the registration is cancelled suo-motu (i.e., by the officer on their own motion), and the taxpayer wishes to continue operations, they have an opportunity for reversal of cancellation of GST registration.

This is where Form GST REG-21 comes into play. In simple language, it is the prescribed format for making an application for revocation of cancellation of GST registration. It is important to understand the process, eligibility, timelines, and conditions attached to REG-21 form, to steer clear of business disruptions and fines.

This article illustrates the provisions concerning an application for revocation, the process of filing the GST REG-21 form, and also the process of acceptance or rejection of revocation applications.

Eligibility for Revocation of Cancellation Application

You can apply for GST registration reinstatement under Section 30 of the Central Goods and Services Tax (CGST) Act and Rule 23 of the CGST Rules. The conditions that make you eligible for a reversal application are:

• Applicability: Only taxpayers, whose GST registration cancellation proceedings have been undertaken by a proper officer, can apply for revocation through Form GST REG-21.
• Time Limit: You have to file your application within 30 days time limit of receiving the cancellation order. This means you need to act quickly if you want to restore your registration.
• Conditions: If your GST registration was cancelled because you did not file your returns, you must complete filing of tax returns and pay any taxes, interest, late fees, or penalties before you can submit your application of reversal. This step is crucial because it shows that you are compliant with the GST rules.

Therefore, if you are a reversal applicant, you must remember you have a limited time to apply for revocation. Following these guidelines will help ensure that your applicability of reversal procurement goes smoothly and increases your chances of getting your registration reinstated.

Steps to File GST REG-21 Form

To file an application for reversal on the GST portal, you have to follow some simple steps:

Step 1: Open the GST portal and put in your login credentials, such as your username, password, and captcha code.

Step 2: Now, go to 'Services', click on 'Registration' and then on 'Application for Revocation of Cancellation'.

Step 3: Now, fill in all required information and reasons for seeking revocation. Upload all necessary and required documents.

Step 4: Tick the verification checkbox and select the authorised signatory. Enter your place and submit using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).

Step 5: After successfully submitting your application, you will receive an acknowledgement message confirming that it has been filed.

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Acceptance or Rejection of Revocation Application

The acceptance or rejection of your GST REG-21 application depends on the satisfaction of the proper officer reviewing it. The details are discussed below.

On Acceptance of  Your Application

Here is what happens if the proper officer accepts your application:

• The proper officer will revoke the cancellation of registration.
• An order in the GST REG-22 form will be issued within 30 days of receiving the application.
• The regular taxpayer will be informed about this decision through the GST REG-22 form.

On Rejection of Your Application

Here is what happens if the officer rejects your application:

• If your revocation application is rejected, you will receive a notice in Form GST REG-23. The form explains the reasons for the rejection .
• You must respond to the notice using Form GST REG-24. The time extension given for your response is seven working days from the date you receive it.
• If the officer finds your response satisfactory, they will issue an order to revoke the cancellation in Form GST REG-22. This will restore your GST registration.
• However, if unsatisfied, the officer in Form GST REG-05 will reject your application for revocation, and your registration will remain cancelled.

How to Remove Suo Moto Cancellation in GST?

To remove a Suo Moto (on its own motion) cancellation of your GST registration, you need to apply for its revocation on the GST portal. First, log in to the GST portal and navigate to Services > Registration > Application for Revocation of Cancelled Registration. Fill in the required details, clearly stating the reasons why the cancellation should be revoked and attach any supporting documents.

Ensure you have filed all pending GST returns and paid any outstanding dues, including tax, interest, and penalties, as this is a prerequisite for revocation. After submitting the application, the GST officer will review it, and if satisfied with your justification and compliance, they may issue an order in Form GST REG-22 revoking the cancellation within 30 days.

How to Reply for Show Cause Notice for Cancellation of Registration?

To reply, log in to the GST portal and navigate to Services then Registration and finally to Application for Filing Clarifications. Submit your response within 7 working days, addressing all concerns mentioned in the notice. Attach necessary documents to support your explanation. If the officer is satisfied they will drop the cancellation proceedings.

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Key Points to Remember

Here are a few things to remember:

• Form GST REG-21 is used to revoke GST registration cancelled suo-moto by the GST officer, not for voluntary cancellations.
• The application must be filed within 90 days from the cancellation order, extendable by up to 180 days with valid reasons.
• You must file all pending returns and clear outstanding dues before applying for revocation.
• A clear and valid reason with supporting documents must be provided in Form GST REG-21.
• The officer may approve revocation via REG-22, seek clarification via REG-23, or reject it using REG-05 after reviewing your REG-24 reply.
• You must file pending returns and clear any outstanding dues to apply for revocation if your cancellation was due to non-compliance.

Conclusion

Overall, form GST REG-21 provides an opportunity for taxpayers to reverse their cancelled GST registrations and continue their business operations smoothly. However, compliance with filing deadlines, payment obligations, and procedural requirements is essential for successful revocation.

By following the steps outlined above and addressing any concerns raised by authorities promptly, taxpayers can ensure their applications are processed efficiently.

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