When taxpayers cancel their Goods and Services Tax registration, they are no longer considered Goods and Services Tax-registered. Since they are exempt from Goods and Services Tax, they need not submit Goods and Services Tax returns or claim Goods and Services Tax input tax credit.

What are the Reasons for the Retraction of Neutralize?

Taxpayers may request the termination or retraction of their Goods and Services Tax enrollment if they wish to. Goods and Services Tax enrollment neutralize requests must be submitted using the official Goods and Services Tax Portal. Whether you are looking to cancel your Goods and Services Tax enrollment or retract it, this article will walk you through the steps.

Reasons for Neutralize Registration

Proper authorities may cancel an individual’s registration if they believe the individual:

• Has broken any part of the Act and any one of the regulations issued under it
• Have not filed in 3 years
• Not submitted any reports for six months (for others)
• It hasn’t opened for business within the first six months after registering
• Has successfully registered using deception, including but not limited to providing false information on the registration form or omitting relevant information
• The responsible authority must provide the alleged defaulter a chance to be heard before cancelling registration.

Neutralize or Retraction Request Form

• The government clarified that a taxpayer whose Goods and Services Tax enrollment has been retract is not eligible to reapply for a new Goods and Services Tax enrollment
• There has been a recent uptick in neutralize of taxpayer’s Goods and Services Tax enrollment under Part 29(2) of the Federal Goods & Service Tax Act, 2017, or failure to submit Form GSTR 3B and Form GSTR 4. Since these individuals did not submit a request for retraction within 30 days of neutralization, a Reduction of Difficulties Order (RoD) was issued to allow them to do so by 22 July 2019. Importantly, this warning only applies to taxpayers for whom registration was retracted on or before 31 March 2019, and who did not react to the letters sent.

Non-Permissibility

If your registration has already been cancelled because you failed to submit the required returns, you will not be able to submit a GST revocation application. For this reason, before applying to retract, taxpayers must first submit any tax returns due before the date of all such neutralize.

In addition, the common site does not make it easy to apply for retraction beyond the start date of neutralize if the register has been retract with retroactive effect. In light of this, an application for withdrawal of registration may be filed within 30 days of the date of the order of retraction, but only if all returns for the period beginning on the effective date of withdrawal of enrollment and ending on the date of the order of retraction have been filed.

How To Complete Form GST REG-21

• If you get a notification of Goods and Services Tax enrollment deletion and wish to submit Goods and Services Tax REG-21 in 30 days, you may do so as follows
• Access the Goods and Services Tax site and click on the Registration link under the Services tab.
• Select the Goods and Services Tax enrollment neutralize Application
• Include your full name, phone number, email address, and other pertinent requested information
• Next, please explain why you are withdrawing your Goods and Services Tax enrollment. Finally, please upload any relevant files. However, remember that the total file size must not exceed 1MB
• When entering your information, click the box to confirm it—type in the signer’s full name and location
• The next step is to use a DSC (required in the case of a corporation or LLP) or EVC to authenticate the application
• When you are ready, click the submit button to send in your Goods and Services Tax REG-21 application to have your enrollment retract.

What to do if you are notified to terminate your Goods and Services Tax enrollment and have 30 more days before filing Goods and Services Tax REG-21:

• Suppose you cancel your Goods and Services Tax enrollment but forget to complete Form Goods and Services Tax REG-21 before 30 days. In that case, you must first submit a request to the appropriate official explaining why you want your Goods and Services Tax enrollment reinstated
• If a date extension is requested, the appropriate officer will transmit the request to the appropriate commissioner for a decision. We might imagine two possible outcomes:
• The deadline for implementing Goods and Services Tax REG-21 may be extended by the joint jurisdictional commissioner and additional jurisdictional commissioner. Here, the relevant official will relay the message to the taxpayer
• The joint jurisdiction commissioner or the extra-jurisdictional commissioner denies the request for a deadline extension. But in this scenario, the appropriate official will notify the taxpayer of the refusal and explain why
• The application for neutralize of Goods and Services Tax enrollment will be handled by applicable legislation and procedure upon receipt of notification from the relevant joint or additional jurisdictional commissioner.

The following steps must be taken to submit Goods and Services Tax REG-21 beyond 30 days but just before 60 days after receiving the notification of Goods and Services Tax number neutralize:

• Access the Goods and Services Tax site and click on the Registration link under the Services tab
• Select the Goods and Services Tax enrollment neutralize Application
• Include your full name, phone number, email address, and other pertinent requested information
• Next, please explain why you are withdrawing your Goods and Services Tax enrollment. Finally, please upload relevant files; however, remember that the total file size must not exceed 1MB
• When entering your information, click the box to confirm it—type in the signer’s full name and location
• The next step is to apply to cancel your Goods and Services Tax enrollment and have it digitally signed using a DSC (required in the case of a corporation or LLP) or an EVC.

Notice Serving

The affected taxpayer will be allowed to be heard by Section 169(1) of the CGST Act. The taxpayer may be contacted through their provided email address or shared portal. This notification’s contents apply to taxpayers whose registration has been terminated on or before 31 March 2019, or who have not replied to the letters sent.

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