Here you will learn about the procedure for retraction of neutralize Goods and Service Tax enrollment after 90 days.
The Goods and Service Tax Act of 2017 is a detailed act that is majorly renowned for covering all the provisions and procedures for every taxpayer’s condition.
The reactivate of neutralised enrollment is only possible if the concerned Goods and Service Tax officers cancel for the right reasons. The authorities or officials of Goods and Service Tax can cancel any taxpayer’s Goods and Service Tax registration certificate for various reasons, per the Goods and Service Tax Act.
However, such a taxpayer can apply for Reactivate of Neutralize enrollment on the online portal of Goods and Service Tax or via offline mode. All these provisions are detailed under Rule 23 of the Goods and Service Tax Act, 2017.
Form Goods and Service Tax REG-21: Application for the Reversing Goods and Service Tax Registration’s Reactivate
Any taxpayer whose Goods and Service Tax enrollment was neutralize by any concerned Goods and Service Tax officer has the right to file for reactivate of such a neutralize GST registration Process by applying the Goods and Service Tax REG-21 Form.
However, there is a time limit to apply for it. Within 30 days of receiving notice of the neutralize of your Goods and Service Tax enrollment, you should be able to file your application.
Suppose the concerned officer has neutralize any Goods and Service Tax enrollment due to the non-filing of returns. In that case, the setback application in Goods and Service Tax REG-21 should be applied only after filing pending returns with the proper penalty and interest.
Following are various steps you should follow to file Goods and Service Tax REG-21:
- STEP 1: Visit the official portal of Goods and Service Tax. Log in to your Goods and Service Tax account by providing login credentials, i.e. username and password. Now click on the ‘Services’ tab and the ‘enrollment’ option. Select the ‘Application for reactivate of neutralize Goods and Service Tax enrollment’ option.
- STEP 2: Provide the necessary details and various reasons for the reactivate of the neutraliz Goods and Service Tax enrollment. Also, attach a few supporting documents with your submitted application. After filling out all the required details, connect to the verification checkbox. Choose the place and signatory of the authorised one.
- STEP 3: With EVC or DSC, file a Form GST-21. You will get an SMS after your application has been submitted successfully on your provided mobile number and email address.
Time Extension to Apply for Reactivate
On 6 September 2021, the CGST circular 158/14/2021- Goods and Service Tax was issued by CBIC. It illustrates the relevance of Notification no. 34/2021 of CGST on 29 August 2021.
The CBIC temporarily lengthened the duration limit to apply for reactivation of neutralize Goods and Service Tax enrollment till 30 September 2021; however, the due date for applying for the reactivate process was open from 1 March 2020 to 31 August 2021.
Various taxpayers put forward their queries regarding the applicability of such an extended period. Accordingly, the officials of CBIC released a Goods and Service Tax circular to clarify these queries.
As per the released circular, this extended period is accessible for everyone irrespective of reactivate application status as applied, rejected, under processing, with the concerned authority, etc.
In Section 30 of Goods and Service Tax Act 2017, a new provision came into effect on 1 January 2021, permitting expansion in the final date to apply for reactivate of neutralize Goods and Service Tax enrollment if authorized by the Joint Commissioner/Additional Commissioner or commissioner for 30 days extension from each authority.
After this provision took effect, several taxpayers got suspicious about whether or not they could take an additional extension of 30 to 60 days, based on the approval from the authorities, after 30 September 2021.
Only for the following cases was the extension applicable:
- Non-filing of returns for three consecutive quarters by a trader of composition
- Non-filing of returns by a legal taxpayer for six months
Form Goods and Service Tax REG-23: Notice for Neutralize of the Reactivate Petition
The concerned officer will authorize the e-reactivate application filed in Goods and Service Tax REG-21 Form.
Suppose the concerned officer is unsatisfied with the reactivate application. In that case, the officer will provide a show cause notice in Goods and Service Tax REG-23 Form to the specific taxpayer where the reasons for rejecting your application will be mentioned. Also, a taxpayer will get an opportunity to put forth reasons why the officer should not cancel their enrollment of Goods and Service Tax.
The person who has received the notice in Form Goods and Service Tax REG-23 has to acknowledge it in Form Goods and Service Tax REG-24 within seven days from the issuing date of the notice.
However, if the concerned officer is delighted with the reactivate application, he will document the primary cause in writing. Also, he will direct an issue for reactivate of neutralize enrollment in Form Goods and Service Tax REG-22 within 30 days of receiving a response in Form GST REG-21.
Form Goods and Service Tax REG-24: Responding to a Show-cause Notice Obtained in Form GST REG-23
If an assessed gets a notice in Form Goods and Service Tax REG-23, then they are supposed to apply for a response in Form Goods and Service Tax REG-24 within seven working days from the date of obtaining the notice in Form GST REG-23.
The Form Goods and Service Tax REG-24 includes the below-given details:
- GSTIN
- Reference Number and notice date
- Application date and reference number
- Supporting documents to attach
- Reasons provided by a taxpayer for reactivating of neutralize enrollment.
The concerned tax officer will authorise the responses received in Form Goods and Service Tax REG-24. Suppose the officer is satisfied with your reactivate application. In that case, he will give the order to reactivate of neutralize enrollment in Form GST REG-22 within 30 days from when he receives a response in Form GST REG-24.
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However, if the officer does not find any valid reason for the reactivate of your neutralize enrollment, he will reject your application by providing a decree in Form Goods and Service Tax REG-05.
Module for Reactivate of Neutralize GSTIN Beyond 90 Days
To reactivate the application of neutralize Goods and Service Tax after 90 days was permitted by the apprehensive authority or high court, and no electronic module was placed to reactivate such enrollment.
A module was developed and formed to reactivate the GST cancelled registration after 90 days. With the coming of this module, after request or court order, SGSTO’s/LGSTO can reactivate the neutralize enrollment of those taxpayers who did not file a reactivate after 90 days and preferred an appeal.
Important Points to Consider Regarding Reactivate of Goods and Service Tax Registration termination After 90 days
- According to the section 29(2)(c), the Goods and Service Tax administrator has the authority to discontinue the GST enrollment of someone from a specific date, comprising a retrospective period, as he considers appropriate, where the enrolled individual has not provided tax returns for a legal time of 6 months. Such taxpayers whose enrolment is eliminated by an apprehensive administrator can file for reactivate of that termination by documenting a Form GST REG-21
- This reactivate application must be filled out within a month from when you have obtained any attention respecting the termination of your Goods and Service Tax enrolment. However, in certain circumstances, this date can be expanded to 90 days. But still, some taxpayers do not file for reactivate in this duration; hence, they are not authorised to file reactivate. In such circumstances, the taxpayers must go to a high court or appellate council to redress their questions
- A reliable module has now been made to reactivate discontinued Goods and Service Tax enrolment after 90 days. By aiding Court order/reactivate after appeal, SGSTOs/LGSTOs have the permission to cancel the neutralize enrollment of those enrolled people who do not file for reactivate even after 90 days but select the petition
- The means to reactivate the Goods and Service Tax Pro termination is Enrolment Request – Approve reactivate Request – reactivate after Appeal/High Court Order. To enable reactivate, the appointed official has to select the identification number of GST and furnish the pdf format document of the high court order or appeal order affiliated with reactivate proceedings to reactivate the termination of GSTIN. All these aspects are done with a certificate of Digital Signature of the apprehensive official
- If there is any objection in such a module, the appointed officers are organised to file complaints on the Goods and Service Tax pro and can reach out to the e-Governance region of the concerned bureau.
Conclusion:-
You can apply for reactivation of neutralised Goods and Service Tax enrollment with the help of various forms within 30 days from the date of your registration termination. This period can be extended based on multiple factors. The maximum period till the taxpayer applies for reactivate is 90 days.
But, with more development within the act, a module came into existence, allowing this period’s extension. If a taxpayer has not applied for a reactivate application within 90 days, it can help them to file the same application beyond this period.
Still, if you have any queries about the reactivate period, Vakilsearch will assist you with every step. Get in touch with us today to know more.
