The provisions and processes outlined in the GST Act are extensive and apply to various scenarios a taxpayer may encounter. Reading this article, you learn about the various Neutralize options and the procedure.
Procedure for Reactivate of Neutralize GST Enrollment, The provisions and processes under the Goods and Service Tax Act cover a wide range of potential scenarios for a taxpayer. In this article, we examine the procedure for reactivating a neutralized order for Goods and Service Tax enrollment as well as the relevant forms. The CGST Rules, 2017, Rule 23 contains the reactivate provisions.
To put it simply, if the Goods and Service Tax regulations do not apply to you, if you are terminating your company, or if the tax official requests that you cancel your Goods and Service Tax enrollment, you may do so by following a few steps.
Read till the end to check out the details related to the reactivate of a neutralize notice for Goods and Service Tax enrollment in India.
Instructions on How to Permanently Remove My Goods and Service Tax Enrollment
On the Goods and Service Tax site online, a registered taxpayer may submit a request to have their Goods and Service Tax enrollment revoked. The following are the necessary procedures to apply through the website:
- To cancel your Goods and Service Tax enrollment, visit the site at www.gst.gov.in
- To access your account, please click the login button & enter your user id & password
- Next, please enter the code below and click the ‘Log In’ button
- Choose from the available Goods and Service Tax services in the menu bar. Choose ‘Registration’ from the Services menu
- Select the Application for neutralize of Registration submenu from the Registration menu
- In the resulting box, click the ‘reactivate of Registration’ button and specify why the registration neutralize was made
- Use the ‘Select file’ option to upload any necessary supporting files
- After that, choose the appropriate authorised signatory’s name from the drop-down menu and click the verification checkbox
- Do not forget to fill out the ‘Place’ area with the actual name of the location
- If you need to submit your application later, you may store it and return it
- To submit with an EVC, click the Submit with EVC button. To submit with a DSC, click the corresponding button
- Whether the taxpayer uses an EVC or a digital signature certificate, they will still get an OTP on the primary contact’s cellphone and email
- If the Digital Signature Certificate (DSC) checkbox is checked, the designer popup box will include a DSC option; selecting this will continue processing
- A valid one-time password (OTP) must be entered, and the Validate OTP box must be clicked IF the EVC checkbox was chosen
- An application acknowledgment number (ARN) is produced, and a message is sent from the Goods and Service Tax site to confirm receipt of the Goods and Service Tax reactivate the application
- The Goods and Service Tax site will also send a confirmation message to the applicant’s registered email address and cellphone number.
Reactivate on Neutralize Enrollment Application Processing
This is how the process would work;
- The relevant body would review the request for neutralize and its rationale. The officer will reinstate the taxpayer’s Goods and Service Tax enrollment if they are convinced by the explanation and supporting papers
- The application taxpayer receives an automated approval order and a notice of the order’s status. In addition, the primary signatory is notified by text message and email when an order requires approval
- The Goods & Services Tax Identification Number (GSTIN) status is restored to Active with effect from the neutralize date once clearance is received.
Learn More: GST Registration Requirements
Rescission by a Proper Authority
The reactivate will be done by a concerned official due to the following reasons;
- If a taxpayer is not doing business from the address they provided when registering for Goods and Service Tax, an authorised official may revoke their registration
- The company or individual in question sends out bills even though no goods or services have been delivered
- In doing so, the registrant violates anti-profiteering laws
- To some taxpayers whose total taxable worth of supply for the month is above ₹50 lakh, it is permissible to use ITC from an electronic credit register to discharge over 99% of their tax burden, provided that certain conditions are met
- A taxpayer who goes more than six months without filing GSTR-3B
- If there are any ‘Significant Anomalies’ in the amounts of outgoing supplies recorded in GSTR 3B and those disclosed in GSTR1 ITC, the supplier will be put on hold.
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Comparison of GSTR 3B Declared Value to GSTR 2B Data
Following the below-outlined steps, the authorised official may revoke a company’s registration.
- Show cause notification in Goods and Service Tax Registration REG -17 is sent by an authorised person
- Within 7 days after receiving the notification, the enrolled person is expected to respond in Goods and Service Tax Registration REG -18 if they disagree
- If the authorised official is satisfied with the response, he may dismiss the case by issuing an order on FORM Goods and Service Tax REG -20
- If the registered person does not provide sufficient justification for why their registration shouldn’t be revoked, the authorised person will issue a decision in FORM Goods and Service Tax REG-19
- The judgment will be issued within 30 days following the receipt of the response to the show cause.
Refusal of Neutralize of Registration Request
- The Goods and Service Tax office can reject an application if the relevant authorities discover any inconsistency in the request or the accompanying papers. Before rejecting or requesting more information, the official must send a notification in Goods and Service Tax Registration REG – 23. Within 7 days of the notice’s delivery date, the application-registered taxpayer must respond in Form Goods and Service Tax REG – 24. When the officer has received the response within 30 days, the order may be issued in Form GST REG – 05
- When the tax inspector rejects the reactivate, the GSTIN status will remain inactive until the refusal procedure is completed, regardless of whether or not the taxpayer files an appeal.
Process of reactivating cancelled GST registration
The process of reactivating a cancelled GST registration consists of three stages:
Stage 1: Filing the Application for GST Cancellation Revocation
- Access the GST portal and log in using your user credentials (username and password).
- On the GST dashboard, select “Services,” and from the dropdown menu, choose “Registration.”
- Another dropdown menu will appear; here, select “Application for Revocation of Cancelled Registration.”
- Click on “Apply for Revocation of Cancelled Registration.”
- State the reason for revoking the GST registration cancellation.
- Attach the required supporting documents to the application and select the name of the authorized signatory.
- Submit the application with either a Digital Signature Certificate or through the EVC Box.
Stage 2: Processing the Application
- The GST officer will review your application and assess whether the reasoning for reactivating the cancelled GST registration is satisfactory.
- If the GST officer is satisfied, they will approve the revocation, and within 30 days, your GST registration will be reactivated.
- You will receive a notification in the Form GST REG-22 confirming the reactivation.
Stage 3: In Case of Application Rejection
- If the GST officer finds your reason unsatisfactory, they will notify you of the rejection through FORM GST REG-23.
- Upon receiving the rejection notification, you have 7 days to respond appropriately using FORM GST REG-24.
- The GST officer will review your reply and issue a suitable notification in FORM GST REG-05 within 30 days.
By following these three stages, you can successfully reactivate a previously cancelled GST registration.
Steps to Reactivate GST Cancellation
Here are the steps to reactivate a cancelled GST registration:
Step 1: Check the Reason for Cancellation
Begin by understanding the reason behind the cancellation of your GST registration. The cancellation could be due to non-compliance with GST laws or failure to file GST tax returns. You can check the reason by logging into the GST portal and accessing your account.
Step 2: Address the Reasons for Cancellation
Once you know the reason for cancellation, take the necessary steps to address it. Ensure that you are compliant with the GST laws and that all required documents are in order. If non-filing of GST returns was the reason, file any pending returns promptly.
Step 3: File an Application for Reactivation
Log in to the GST portal and access your account to file an application for reactivating your GST registration. Look for the option to apply for reactivation and follow the process.
Step 4: Submit Supporting Documents
Along with the application, submit the necessary supporting documents. These documents may include evidence of GST law compliance, proof of filing pending GST returns, and any other documents requested by the GST authorities.
Step 5: Wait for Approval
After submitting the application and supporting documents, you’ll need to wait for approval from the GST authorities. The processing time may vary depending on the workload of the authorities but could take several days or weeks.
Step 6: Make Payment of Outstanding Amounts
If there are any outstanding amounts, such as late fees, penalty charges, or other dues owed to the GST authorities, make the necessary payments before reactivation can occur.
Step 7: Reactivation of GST Registration
Upon approval of your reactivation application and clearance of outstanding amounts, the GST authorities will reactivate your GST registration. You’ll receive an official confirmation, and you can resume filing your GST returns as before.
Following these steps will guide you through the process of reactivating your cancelled GST registration successfully.
Online Application Procedure for Revocation of Cancellation
To apply for the revocation of cancellation online through the GST Portal, follow these steps:
- Access the GST Portal:
Go to the official GST Portal website at www.gst.gov.in.
- Log in to Your Account:
Enter your username and the appropriate password to access your GST account.
- Navigate to Application for Revocation:
Once you’re logged in, you’ll land on the GST Dashboard. From there, select “Services.” Under “Services,” click on “Registration,” and then choose “Application for Revocation of Cancelled Registration.”
- Choose Revocation Option:
Select the option to “Apply for Revocation of Cancelled Registration.” You will then be prompted to provide a reason for revoking the GST registration cancellation.
- Attach Supporting Documents:
If necessary, attach any supporting documents required for the revocation application. These documents may vary based on the reason for cancellation and the GST authorities’ request.
- Complete Verification Details:
In this step, you need to select the verification checkbox and choose the name of the authorized signatory. Additionally, fill in the “Place” field as required.
- Submit the Application:
The final step is to submit the application for revocation. You have two options for submission:
- a) Submit with Digital Signature Certificate (DSC): If you have a DSC, you can use it to submit the application.
- b) Submit with Electronic Verification Code (EVC): Alternatively, you can use the EVC option to verify and submit the application.
Once you have completed all the above steps and successfully submitted the application, the revocation process will begin. The GST authorities will review your application and supporting documents, and if everything is in order, they will process the revocation of your cancelled GST registration.
Requirements for the Restoration of a cancelled GST Registration
The restoration of a cancelled GST registration can occur in different situations, as outlined in the GST laws:
- Voluntary Cancellation: GST registration may be cancelled by a taxpayer voluntarily.
- Cancellation due to Death: In the event of the taxpayer’s death, their legal nominee can initiate the cancellation of the GST registration.
- Cancellation by Tax Officer: The GST registration can also be cancelled by a tax officer if certain conditions are met.
The GST laws encompass various legal provisions and sections related to the cancellation and restoration of GST registration. These provisions help taxpayers understand the circumstances and procedures governing their cancellation under different laws.
What Are the Documents Required for GST Cancellation?
The documents required for GST cancellation include:
- Authorized Signatory’s PAN Card: The PAN card of the authorized signatory who is applying for the GST cancellation.
- Authorized Signatory’s Aadhar Card: The Aadhar card of the authorized signatory.
- Details about Company’s Authority: If applicable, documents related to the company’s authority, such as merger, demerger, or transfer, should be provided.
- GSTIN of Cancelled Business: The Goods and Services Tax Identification Number (GSTIN) of the business that is being cancelled.
- Details of Inputs Held in Stock: Information regarding the inputs held in stock at the time of GST cancellation.
- Details of Outstanding GST Liabilities: Information about any outstanding GST liabilities, including fines, penalties, and other dues.
- Details of GST Payments and Input Tax Credits: Records of GST payments made against the outstanding liabilities and details of input tax credits utilized.
These documents are necessary for the smooth and accurate process of GST cancellation. It’s essential for the applicant to provide all relevant and valid documents to avoid any delays or complications during the cancellation process.
How Do I Activate My GST Cancellation?
To activate your GST cancellation revocation, follow these steps on the GST portal:
- Open the GST portal at www.gst.gov.in to initiate the revocation of the cancelled GST registration.
- Click on “Login” and enter your user ID and password.
- Enter the correct captcha and select the “Login” button.
- On the GST dashboard, go to the “Services” menu. From the drop-down menu, select “Registration.”
- Choose “Application for Revocation of Cancelled Registration” from the registration options.
- In the next window, select “Registration Revocation” and provide the reason for revoking the cancelled GST registration.
- If required, attach any additional documentation by clicking on the “File” button.
- Check the verification box and select the name of the authorized signatory.
- Fill in the “Place” field with the name of the place or location.
- You have the option to save the application and retrieve it later for submission.
- Choose the appropriate option for submission: “Submit with Electronic Verification Code (EVC)” or “Digital Signature Certificate (DSC),” depending on what’s applicable to you.
- If you choose the DSC option, select the DSC from the emsigner popup menu and continue with the process.
- If you select the EVC option, enter the OTP (One-Time Password) sent to your registered mobile and email, and click the “OTP” button.
- After submitting your GST revocation request, you will receive a confirmation message indicating the submission and generation of your ARN (Application Reference Number).
- A confirmation message from the GST portal will also be sent to your registered email ID and mobile number.
- The concerned tax officer will review your application, verify the attached documents, and proceed with the revocation process.
By following these steps and submitting the application successfully, your GST cancellation revocation process will be initiated and processed by the GST authorities.
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How do I reactivate my surrendered GST?
You can reactivate your surrendered GST by submitting Form GST REG-21 on the GST portal.
Can I reapply for GST registration after cancellation?
Yes, you can reapply for GST registration after cancellation. You can submit an application for reactivation of cancelled registration within 30 days of receiving the order for cancellation of GST.
How do I activate suspended GST registration after 30 days?
To activate a suspended GST registration after 30 days, you need to submit an application for the revocation of cancellation. The authorized officer will investigate the application and, if satisfied, will pass an order revoking the cancellation of registration
How much time does it take to reactivate the GST number?
The time it takes to reactivate the GST number can vary depending on the processing time of the authorities. It is recommended to follow up with the GST department for updates on the reactivation process
What happens after cancellation of GST registration?
After the cancellation of GST registration, the registration is no longer valid, and you are no longer authorized to conduct business under that GST number. It is important to apply for re-registration if you wish to continue your business activities
Can I continue business after GST cancellation?
No, you cannot continue business after GST cancellation. Once the GST registration is cancelled, you are no longer authorized to conduct business under that GST number. It is necessary to reapply for GST registration if you want to continue your business activities.