How to Reactivate a Suspended GST Number in India?

Did you have trouble understanding how to activate a suspended GST number? We've got you covered, This blog post goes into great depth about how to reclaim a suspended GST number.

A suspended GST number can disrupt your business operations, but the good news is it can be reactivated. A GSTIN suspension typically occurs due to non-filing of GST returns, pending tax liabilities, or non-compliance with GST regulations. The GST reactivation process involves addressing the underlying issues, such as clearing backlogs or settling penalties.

Once the issues are resolved, you can submit a reactivation request on the GST portal, where a GST officer will verify the details before approving the reactivation. In this guide, we will walk you through the steps to easily reactivate your suspended GST account and avoid future disruptions.

What is a Suspended GST Number?

A Suspended GST Number refers to the temporary deactivation of a GSTIN (Goods and Services Tax Identification Number) due to non-compliance with the GST rules. When a business fails to adhere to filing requirements or tax regulations, the GST suspension occurs. This action can restrict the taxpayer from filing returns, claiming input tax credits, and engaging in regular business activities under GST.

Reactivating a suspended GST number requires resolving any compliance issues and submitting a reactivation request through the GST portal.

Reasons for GST Suspension

Several reasons can lead to the suspension of a GST number:

1. Non-filing of GST Returns: Failure to submit GST returns on time or continuously missing filing deadlines can result in suspension.
2. GST Violation: Any violation of GST laws, including fraudulent claims or false reporting, can lead to suspension.
3. Pending Tax Liabilities: If there are outstanding tax liabilities or unpaid dues, the GST number can be suspended until the dues are cleared.

Understanding these reasons can help businesses take necessary actions to avoid suspension and ensure smooth operations.

Steps to Reactivate a Suspended GST Number

Follow the below steps to reactivate your suspended GST number:

Step 1: Log in to the GST Portal

• Visit the GST portal at www.gst.gov.in.
• Click on “Login” to access your GST Account.
• Enter your GSTIN and password to log in and access your account details.

Step 2: Check Suspension Reason

• Once logged in, navigate to your GST profile.
• Review the GST Suspension Notification for specific details on why your GST number was suspended.
• Check your Taxpayer Details to verify any non-compliance or issues with your compliance status.

Step 3: Resolve Compliance Issues

• Clear any pending GST returns by filing missing returns via the GST portal.
• Address any filing delays by submitting the overdue returns immediately.
• Settle any GST penalties or outstanding tax liabilities to ensure compliance.

Step 4: Submit Reactivation Request

• Once compliance issues are resolved, navigate to the “Reactivation” section on the GST portal.
• Fill out the Application for Reactivation, ensuring all details are accurate.
• Submit your reactivation request, which will be sent to a GST officer for review.

Step 5: Verification and Approval

• The GST officer will verify your reactivation request and supporting documents.
• Once verified, you will receive approval or a communication from the officer regarding the reactivation status.
• If approved, your GSTIN will be reactivated and you can resume business operations.

How Long Does It Take to Reactivate a Suspended GST Number?

If your GST number is suspended due to non-compliance, it can typically be reactivated within 15 minutes after filing all pending GSTR-3B returns.

The GST portal automatically restores the registration in most cases. However, if the system doesn’t revoke it automatically, taxpayers can use the ‘Initiate Drop Proceeding’ option to trigger manual intervention. This ensures a smooth and quick resolution to resume GST compliance.

Common Issues During GST Reactivation

Delayed Reactivation

1. Delayed Reactivation can occur due to unresolved compliance issues such as pending GST returns or missing documents.
2. Incomplete documentation, such as incorrect proof of address or identity proof, can also cause delays.
3. To avoid this, ensure all compliance issues are addressed, and all documents are submitted correctly before requesting reactivation.

GST Reactivation Denial

1. GST reactivation denial may happen if you still have outstanding penalties, unresolved tax liabilities, or non-compliance with GST filing regulations.
2. The GST officer’s decision is final, and if reactivation is denied, you’ll need to resolve any issues mentioned in the denial notice.
3. To appeal or correct the decision, you must submit the required documents and resolve all violations as outlined by the GST officer.

Preventing Future Suspension of GST

Maintain Regular Filing of GST Returns

1. Timely GST filing is essential to maintain your GST compliance and avoid any suspension of your GST number.
2. Set reminders to file your GST returns before the due date and ensure accurate reporting to prevent any issues with GST compliance.
3. Regular filing reduces the risk of penalties and suspension by ensuring timely updates to the GST portal.

Set Up GST Compliance Alerts

1. Use GST alerts or tax filing reminders to track important deadlines and avoid missing filings.
2. Setting up alerts ensures you stay on top of your GST obligations and prevents the possibility of future GST suspension.
3. You can set up automated reminders via email or use GST compliance tools for timely notifications.

Our legal experts at Vakilsearch can explain the whole process for GST registration and also help make the suspended GST number process smoother and more efficient for you.

FAQs

Why is my GST number suspended?

Your GST number is suspended for reasons like non-filing of GST returns, non-payment of taxes, or violations of GST rules. Suspension occurs when compliance is not met, such as missing deadlines or unpaid dues.

How can I check if my GST number is suspended?

To check if your GST number is suspended, visit the GST portal and log in to your account. You can view the status under the 'GST Registration Status' section.

How to activate cancelled GST registration after 2 year?

To reactivate GST cancelled over 2 years ago, contact your jurisdictional GST officer. You may need to file returns, clear dues, and approach the appellate authority since the standard 30-day revocation period has passed.

Can I reactivate my GST number without filing pending returns?

No, you must clear all pending GST returns and tax liabilities to reactivate your GST number. Failing to do so will prevent reactivation and affect your compliance status.

What are the charges for GST reactivation?

There are no charges for GST reactivation if the suspension was due to non-compliance. However, penalties and interest for delayed tax payments or filings may apply as per GST laws.

How long will it take to get my GST number reactivated?

Reactivation can take 2 to 7 business days after resolving compliance issues. The exact time depends on the verification process and the GST officer's approval.

What happens if my GST reactivation request is denied?

If your GST reactivation request is denied, you’ll receive a notice detailing the reasons. You can resolve the issues and reapply for reactivation or appeal the decision with the GST officer.

Can a GST number be suspended due to non-payment of penalties?

Yes, non-payment of penalties or outstanding dues can result in GST suspension. This includes both GST-related fines and other penalty charges for non-compliance with regulations.