Introduction

GST is an integrated tax system, which replaces several indirect taxes imposed by both the central and state governments. This is expected to reduce the cost of goods and services, boost the economy and make our products and services globally competitive. GST laws are regularly amended to simplify the GST regime and make the regulation fair for all. However, at the same time the government is also focusing on making the GST taxation laws more stringent than before. Often, situations arise when GST is cancelled for many businesses. There are various reasons for this. Sometimes, businesses cancel it on their own, and other times, the GST department cancels it. Regardless of the reasons, you can still activate your cancelled GST, regardless of the cancellation period. Whether it has been 30 days, 90 days, a year, 2 years, or even 3 years, you can still activate your cancelled GST registration. In this article, we will guide you on how to activate your cancelled GST, regardless of the number of days that have passed since the cancellation. We will also provide information on the required documents and scenarios in which GST gets cancelled.

Why GST gets cancelled?

Before we talk about how you can reactivate your cancelled GST, let's look at a few reasons why GST gets cancelled.

• GST registration can be suspended if there is a change in the constitution of the business.

• If a business is transferred or merged, the registration may also be suspended.

• Registration can also be suspended if the taxpayer fails to comply with the rules of the CGST Act.

• If the taxpayer voluntarily applies for cancellation of registration, then the officer concerned suspends the registration.

• If the officer has information that GST registration has been obtained using fraudulent means, then the officer has the right to suspend the registration.

• Registration may be suspended if the business is being operated from a location other than the location mentioned as per the documents

• If business is not started within 6 months of GST registration then registration may be suspended as per GST rules

• Registration is also cancelled if the person carrying on other business has not furnished the return for a period of 6 months other than the composite scheme

Documents required to activate a cancelled GST Registration

• Application for Activation

• Copy of GST registration certificate

• Reason for cancellation

• Supporting documents

• ID proof and address proof of the authorized signatory.

• Bank account details.

What is Form GST Reg 21

If GST registration of any taxpayer is cancelled by the proper officer then using Form GST Reg 21 any taxpayer can apply to activate such cancellation. There is also a specific time for the application such as this application must be submitted within 30 days of receiving the notice of cancellation of registration. If the registration has been cancelled by the proper officer due to non-filing of returns then activation application in Form GST Reg 21 can be filed only after all pending returns including interest and penalty have been filed.

Steps to activate cancelled GST registration

Step.1) Log in to the GST portal and navigate to ‘ Services ’> ‘ Registration ’>  'Application for Revocation of Cancelled Registration'. 

Step.2) Enter the required information and reasons for revocation of cancellation. Also, supporting documents can be attached. Once you fill out all the details, click on the verification checkbox. Select the authorized signatory and enter the place name and save the application.

Step.3) Submit the Form GST regulation- 21 by completing the verification with DSC or EVC. Once the application is submitted successfully, you will receive a message on your registered number and email.

Consequences of cancellation of GST registration

• If for any reason your registration is cancelled by any officer then in this situation you cannot collect GST on sales in your business i.e. you cannot charge GST on your invoices. After cancellation, you will have to adjust your items accordingly.

• Even after cancellation, any business is required to file GST returns and pay all outstanding taxes. If he fails in any way to comply with these requirements or fails to maintain records for the specified period, he may also be punished as a consequence.

• If your registration has been cancelled by officer and yet you are collecting GST, then in such a situation you may have to pay a penalty and this can also significantly increase your financial burden.

• After registration is cancelled, a business basically cannot claim input tax credit on purchases, which means the cost of your goods may increase because in case of cancellation the business cannot recover the GST paid on inputs.

• If your registration is cancelled then it also raises questions about the reputation of your business. Basically, it affects the reputation of your business more when the matter is of fraud or deception, i.e. your registration has been cancelled due to fraud or deception.

• After cancellation of registration, you may have to return all the inputs which were taken before the cancellation.

Time limit for filling application of activation of cancelled GST registration

As we know, if your registration has been cancelled by any officer and you have received the notice of cancellation, then in such a situation you have to apply to activate the cancellation along with all the mandatory documents within 30 days of receiving the notice of cancellation, but in some circumstances it also happens that the period of 30 days is extended to 90 days i.e. you can apply to activate the cancellation within 90 days.

Conclusion

If your registration is cancelled by the officer for any reason, you can apply to activate the cancellation by using Form GST Reg21. The form plays a very important role right from the initial filing of Form GST Reg 21 to submitting all the required documents carefully and responding to the notice. As we told you in this article, if your registration is cancelled 2 years or even after 3 years, then how can you apply to activate it with the help of Form GST Reg21. Cancellation of registration not only affects the reputation of your business but also increases the financial burden significantly. After cancellation of registration, what are the necessary documents which you mainly have to use to activate the cancellation and what is the complete process, we have told you very well. As you know you have to apply for activation of cancellation within 30 days of receipt of notice of cancellation of registration but in some circumstances this 30 day period is increased to 90 days i.e. you get up to 90 days time within which you can apply with the help of Form GST Reg 21 to activate the cancellation.

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FAQs

Can I apply for revocation of cancelled GST registration online?

Ans. Yes, the application for revocation of cancelled GST registration can be filed online through the GST portal.

What happens if the application for revocation is not approved?

Ans. If the application for revocation is not approved, the taxpayer needs to apply for a fresh GST registration.

Is there any fee for revocation of cancelled GST registration?

Ans. No, there is no fee for filing the application for revocation of cancelled GST registration.

Can I revoke my cancelled GST registration after 2 years?

Ans. No, revocation must be applied within 30 days (extendable to 90 days). After 2 years, you need a new registration.

How to activate suo moto cancelled GST registration after 2 years?

Ans. Apply for a new GST registration, as revocation is no longer possible.

What to do after cancellation of GST registration?

Ans.  File pending returns, settle liabilities, and apply for a new registration if required.

How to activate GST after suspension?

Ans.  Address the reason for suspension (e.g., file pending returns), and the suspension will be lifted.

How do I activate my GST number after it becomes inactive?

Ans.  File pending returns, pay dues, and ensure compliance.

What happens if GST returns are not filed for 6 months?

Ans. Suspension or cancellation of registration, along with penalties and interest.

How to activate GST?

Ans.  File pending returns, clear dues, and apply for revocation or new registration if required.

How do I know if my GST is active or inactive?

Ans. Check the GST portal under 'Search Taxpayer' by entering your GSTIN.

Can I activate a cancelled GST registration after 90 days?

Ans. No, apply for a new GST registration.

How do I activate a blocked GST?

Ans. File pending returns, pay dues, and ensure compliance.

How do I surrender an inactive GST number?

Ans. Submit an application for cancellation through the GST portal under 'Services > Registration.'

How to reactivate a GST number?

Ans. Reactivation is possible only if within the revocation period; otherwise, apply for a new registration.

How to change GST status from inactive to active?

Ans. Ensure compliance by filing returns and clearing dues.