Sometimes, the GST department cancels a taxpayer’s GST registration on its own (this is called Suo moto cancellation). This usually happens because returns were not filed for a long time.

If your GST registration is cancelled by the tax officer, you can apply to get it restored. This process is called revocation of cancellation of GST registration.

Rule 23 – Revocation of Cancellation of GST Registration

Rule 23 explains how a taxpayer can get their GST registration restored if it was cancelled by the GST department.

1. Who can apply for revocation?

  1. Only a registered person whose GST registration was cancelled by the GST officer on their own (not voluntarily surrendered).
  2. Application is filed in Form GST REG-21 on the GST portal.

2. Time limit to apply

  1. Application must be filed within 90 days from the date the cancellation order is served.
  2. This time limit can be extended up to 180 additional days if:
    1. There is a valid reason, and
    2. The Commissioner / Joint or Additional Commissioner approves it in writing.

3. Mandatory condition (very important)

If registration was cancelled due to non-filing of returns, then:

  1. All pending GST returns must be filed first, and
  2. All dues must be paid, including:
    1. Tax
    2. Interest
    3. Penalty
    4. Late fees

Without this, revocation application cannot be filed.

4. Filing returns after revocation

Once the registration is restored:

  1. The taxpayer must file all returns from the date of cancellation till the date of revocation
  2. Time limit: Within 30 days from the date of revocation order

If cancellation was retrospective:

  1. Returns must be filed from the effective date of cancellation till revocation
  2. Time limit: 30 days from revocation order

5. Action by the GST Officer

(a) If the officer is satisfied:

  1. Revocation is approved in Form GST REG-22
  2. Must be done within 30 days of receiving the application

(b) If the officer is not satisfied:

  1. Application is rejected using Form GST REG-05
  2. Reasons must be recorded in writing

6. Show Cause Notice before rejection

  1. Before rejecting, the officer must issue a Show Cause Notice in Form GST REG-23
  2. Taxpayer must reply in Form GST REG-24
  3. Reply time: 7 working days

7. Final decision after reply

  1. After receiving the reply, the officer must:
    1. Either approve or reject the application
    2. Within 30 days of receiving the reply

How to file GST REG-21 (Step-by-Step)

Step 1: Login

Go to GST Portal
Services → Registration → Application for revocation of GST registration cancellation

Step 2: Fill details

  1. Enter reasons for revocation (why registration should be restored)
  2. Upload supporting documents, if any
  3. Select authorised signatory and place
  4. Tick the verification checkbox

Step 3: Submit

Submit the form using:

  1. DSC (Digital Signature Certificate), or
  2. EVC (OTP)

You will receive a confirmation message after successful submission.

Special time extensions given by the Government

Notification No. 03/2023

This was a one-time relief for old cases.

You could apply for revocation if:

  1. GST registration was cancelled on or before 31 December 2022
  2. Cancellation was due to non-filing of returns
  3. You missed the original 30-day deadline

Last date to apply: 30 June 2023
(After filing all pending returns and paying dues)

Even rejected cases were allowed

Taxpayers could apply again if:

  1. Appeal against cancellation was rejected due to delay
  2. Appeal against rejection of revocation was rejected

COVID-19 period relaxation (CBIC Circular)

Due to COVID-19, the government gave extra time.

If your revocation deadline fell between:

  1. 1 March 2020 and 31 August 2021

You could apply up to 30 September 2021, even if:

  1. Application was not filed earlier
  2. Application was pending
  3. Application was rejected
  4. Appeal was pending or rejected

Extra extensions under Section 30 of CGST Act

From 1 January 2021, further extensions were allowed:

  1. Additional/Joint Commissioner – extra 30 days
  2. Commissioner – another extra 30 days

So, in some cases, total time could go up to 90 days.

When is this extension allowed?

Only in cases where cancellation was due to:

  1. Non-filing of returns by composition dealer for 3 quarters
  2. Non-filing of returns by regular taxpayer for 6 tax periods

What if the officer is not satisfied?

Form GST REG-23 (Show Cause Notice)

  1. Issued when the officer is not convinced
  2. Asks why the revocation application should not be rejected

Reply to Show Cause Notice – Form GST REG-24

  1. Must be filed within 7 working days
  2. Contains:
    1. Notice details
    2. Application details
    3. GSTIN
    4. Reasons for revocation
    5. Supporting documents

Show Cause Notice: If the proper officer is not satisfied with your online application (Form GST REG-21) or reply to a preliminary notice (Form GST REG-23), Revocation of Cancellation of GST Registration, they will issue a show cause notice. You may be required to attend a personal hearing before the officer makes a final decision to reject the application.