Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
Revocation of GST registration allows taxpayers to restore their cancelled GST number by filing Form GST REG-21 within 30 days.
A proper officer issues Form GST REG-22 if satisfied with the revocation application, officially restoring GST registration.
If the officer raises objections, a taxpayer must respond through Form GST REG-24 within 7 working days.
Revocation is crucial for businesses to continue availing Input Tax Credit and remain compliant under GST law.
Timely GST return filing and adherence to CGST Act rules help avoid GST registration cancellation in the first place.
Revocation of GST registration is the process by which a taxpayer can restore their cancelled GST registration by responding promptly to a cancellation notice. This is done by submitting Form GST REG-18 within 7 days of receiving the notice.
However, the final decision lies with the proper officer, who reviews the application and determines whether to approve the revocation of GST registration cancellation.
If that officer agrees to revoke the cancellation of GST enrollment of that taxpayer, they issue an order in Form GST REG-22. This has to be done within 30 days, officially nullifying the cancellation.
In this blog, we will explore the entire procedure for revocation of GST registration and examine what happens based on the officer’s decision to accept or reject the application.
Why Do Taxpayers or a Proper Officer Revoke a GST registration?
Either the taxpayer or a proper officer can cancel someone’s GST registration. They do it for several reasons. Here are some of the reasons for this cancellation.
Cancellation of a GST Registration by a Taxpayer
There are many reasons why a taxable person might decide to cancel their GST registration. Here are the key grounds for cancellation:
When a business discontinues its operations or closes down.
A change in a business’s regulations due to a change in its PAN number.
The taxpayer does not need to pay GST according to the law.
If a person fails to start their business within 6 months of GST registration.
If a taxable person no longer requires a GST registration.
In case of amalgamation, demerger, and merger of a business.
Cancellation of a GST Registration by a proper Officer
Just like a taxpayer can apply for cancellation, a proper officer from the government can also initiate cancellation of registration under certain circumstances, where cancellation of registration shall be enforced as per GST regulations. Here are some of the reasons why an officer from the government cancels a taxpayer’s GST registration.
If a composition scheme dealer fails to submit a return file consecutively three times.
In case any other taxable person other than a composition scheme dealer fails to file a GST return for consecutively 6 consecutive periods.
If a taxpayer violates the CGST Act, 2017, and its rules in any manner, a proper officer has the right to revoke their GST registration.
In case a taxpayer gets their hands on GST registration by means of fraud, or by concealing facts. A proper officer can cancel that taxpayer’s GST registration.
If a taxpayer does not start their business within 6 months of registration.
Filing for a Revocation of Cancelled GST Registration
When a proper officer cancels a taxpayers GST Registration for not complying with the provisions of CGST Act, 2017, and its rules in any manner or any other circumstances, then that taxpayer has a right to file for application of revocation or a reversal of cancellation of their GST cancellation.
According to rule 23(1) of the CGST Rules, 2017, that taxpayer must make an application to revoke their cancellation of GST Registration in Form GST REG-21. These taxpayers must do it within 30 days of receiving the order for cancellation of their GST registration.
Order for Revoking GST Registration Cancellation in Form GST REG-22.
When a taxpayer files a GST REG-21 for that proper officer, there can be two cases. Either the officer is satisfied with the revocation process or they are not. Both of these cases have different outcomes. Lets understand them in detail.
When That Proper Ofiicer is Satisfied With The Application
If they are satisfied with the revocation application for GST registration cancellation, that officer writes down the reasons for cancellation or revocation of cancellation.
The proper officer has to make an order within 30 days from the date of receipt of the revocation application.
They must issue the revocation or cancellation of GST registration order order in this case.
When That Proper Ofiicer is Not Satisfied With The Application
When a proper officer is not satisfied with the taxpayer’s application for revocation, they will send that applicant a notification in Form GST REG-23 where they ask for valid reasons for cancellation, such as why they should not refuse their application for revocation.
The respective taxpayer should provide their reply in Form GST REG-24 within seven working days from the date they receive this notification.
If that proper officer is satisfied with the taxpayer’s response, They will issue an order to revoke the cancellation of GST registration in Form GST REG-22. Once the Form GST REG-22 is issued, all GST rules and regulations apply to the applicant once more.
Conclusion
It is up to the proper officer if they will accept your file application or not. It is important for most businesses to have a GST registration to run their business legally. Hence, in case you receive any such notification from a proper officer, make sure to provide a valid and respectable reason for filing a revocation application in terms of GST cancellation in Form GST REG-22.
However, you must also try to adhere to the provisions of the CGST Act, 2017, and its rules duly to avoid getting any such notice in the first place.
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FAQs
What is revocation of GST registration?
Revocation of GST registration is the process of restoring a cancelled GST registration. It applies when the cancellation was initiated by the tax officer due to non-compliance with GST rules. A taxpayer can file an application in Form GST REG-21 within 30 days of the cancellation order. If the officer is satisfied, they issue an approval in Form GST REG-22, restoring GST registration rights
Who can apply for revocation of GST registration?
Only those taxpayers whose GST registration was cancelled by the proper officer can apply for revocation. Taxpayers who voluntarily cancelled their GST registration are not eligible. Businesses that wish to continue operations legally and claim Input Tax Credit (ITC) must apply for revocation promptly to avoid compliance issues.
What is the procedure for revocation of GST registration?
The process begins when a taxpayer submits Form GST REG-21 through the GST portal within 30 days of cancellation. The officer reviews the application and either approves or rejects it. If satisfied, the officer issues Form GST REG-22 within 30 days, restoring GST registration. If not satisfied, the officer issues Form GST REG-23, and the taxpayer must respond via Form GST REG-24 within 7 working days.
What happens if the GST officer rejects the revocation application?
If the GST officer is not convinced with the revocation request, they will issue a notice in Form GST REG-23. The taxpayer must reply with proper justification using Form GST REG-24 within 7 days. If the officer remains unsatisfied even after the reply, the revocation application is rejected, and the GST registration remains cancelled.
Why is revocation of GST registration important for businesses?
Having an active GST registration is essential for businesses to operate legally under GST law. It allows taxpayers to collect GST, claim Input Tax Credit (ITC), and file returns. Without revocation, businesses may face penalties, lose ITC benefits, and damage compliance credibility. Hence, applying for revocation promptly ensures business continuity and GST compliance.
Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.
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