GST Cancellation

Revoking Cancellation of GST Registration - A Comprehensive Guide

The Goods and Services Tax (GST) is a complex topic in India, with various aspects like registration methods, return form submissions, and tax challans. If a business’s annual turnover is less than ₹20 lakhs, GST registration can be canceled, removing the entity from GST-enrolled status and exempting it from GST payments or receipts.

The cessation of GST payments.

GST registration is mandatory for some businesses; cancelling can lead to penalties and violations.

The GST Act provides provisions for revocation of cancellation orders, including forms and procedures. Rule 23 of the CGST Rules, 2017 covers revocation provisions.

Checklist for Revocation of GST Registration

Applicant must provide following details for GST REG-16 cancellation revocation:

Contact details, encompassing mobile number and email address.
Grounds for cancellation.
Desired cancellation date.
Specifications for input, semi-finished, finished goods, capital goods, plant, machinery, and corresponding tax payable.
Details of entity registration in case of mergers, amalgamations, or transfers.
Particulars of the latest filed return along with the ARN of the return.

Reasons for GST Cancellation

1

Turnover less than ₹20 lakhs.

2

Taxpayer cancels due to business discontinuation or conversion.

3

Tax officer cancels business due to violation of parameters.

Furnishing LUT and Bonds for Exports

LUT eligibility for registered GST taxpayers is open, except for those prosecuted for evasion. Validity is one year, and fresh filings are required. Bonds require manual submission.

Time Limit for Revocation of GST Registration

Registered individuals can apply for GST revocation within 30 days of receiving cancellation order, only applicable when initiated by the proper officer.

Application for Revocation of GST Registration

Applicant files Form GST REG-21 for GST registration cancellation revocation, either directly or through a facilitation center authorized by the Commissioner.

Processing of Application

Taxpayer registration cancellation can be revoked by the proper officer if satisfactory reasons are provided, within 30 days, and an order in Form GST REG-22 is issued.

Overview of GST Filing Returns - Types and Due Dates

GSTR1

GSTR1 is the form used for tax returns on outward supplies, encompassing both interstate and intrastate B2B and B2C sales. It also includes details of purchases under reverse charge and inter-state stock transfers made during the tax period. Late filing of GSTR1 can result in a late fee, which is collected in the subsequent open return, Form GSTR-3B. Since January 1, 2022, taxpayers cannot file Form GSTR-1 if they haven't filed Form GSTR-3B in the preceding month.

GSTR1A

This amendment form corrects any discrepancies between the GSTR-1 of a taxpayer and the GSTR-2 of their customers. The filing window for GSTR1A is between the 15th and 17th of the following month.

GSTR2

Monthly GST returns for inward supplies are filed using this form. It contains taxpayer information, return period, and detailed invoice-level purchase information related to goods and services separately.

GSTR2A

This auto-generated tax return compiles purchases and inward supplies made by a taxpayer based on the information from their suppliers GSTR-1.

GSTR2B

An auto-generated document that acts as an Input Tax Credit (ITC) statement for taxpayers, facilitating faster return filing, minimizing errors, easing reconciliation, and simplifying compliance.

GSTR3

This form is used to file consolidated monthly tax returns. It contains the taxpayers basic information, turnover details, final aggregate-level inward and outward supply details, tax liability under CGST, SGST, IGST, additional tax (+1% tax), ITC, cash, liability ledgers, and details of other payments like interests, penalties, and fees.

GSTR3A

This is a tax notice issued by the tax authority to a defaulter who has failed to file monthly GST returns on time.

GSTR3B

It is a temporary consolidated summary GST return for inward and outward supplies, introduced as a relaxation for recently registered businesses.

GSTR4

This quarterly GST return is filed by compounding vendors. It includes the total value of supplies made during the covered period and details of tax paid at the compounding rate (not exceeding 1% of aggregate turnover) along with invoice details for inward supplies.

GSTR4A

The Quarterly purchase-related tax return filed by composition dealers, automatically generated by the GSTN portal based on information from the suppliers GSTR-1, GSTR-5, and GSTR-7.

GSTR5

Variable return for Non-resident foreign taxpayers, containing details of the taxpayer, return period, and invoice details of all goods and services sold and purchased. It also includes imports on Indian soil for the registered period/month.

GSTR6

This monthly GST return is for ISDs (Input Service Distributors), containing details of invoice-level supply from the GSTR-1 of counterparties, credit for ITC services received, debit for ITC reversed or distributed, and closing balance.

GSTR7

It is a monthly return for TDS (Tax Deducted at Source) transactions, containing the taxpayers basic information, return period, supplier's GSTIN, and invoices against which the tax has been deducted, categorized under SGST, CGST, and IGST. It also includes details of other payments like interests and penalties.

GSTR8

This is the monthly return for e-commerce operators. It contains the taxpayers basic information, return period, details of supplies made to customers through the e-commerce portal, tax collected at source, tax payable, and tax paid.

GSTR9

The annual consolidated tax return, comprising detailed income and expenditure, regrouped according to the monthly GST returns filed by the taxpayer.

GSTR9A

The annual composition return form to be filed by every taxpayer enrolled in the composition scheme.

GSTR9C

This Audit form is filed by taxpayers liable to get their annual reports audited when their aggregate turnover exceeds ₹2 crores in a financial year.

GSTR10

Filed before cancelling GST registration, this final GST return contains the details of all supplies, liabilities, tax collected, and tax payable.

GSTR11

Variable tax return for taxpayers with UIN (Unique Identification Number), containing details of purchases made by foreign embassies and diplomatic missions for self-consumption during a particular month.

Online Application Procedure - How to Revoke Cancelled GST Registration

Online steps for revoking or cancelling GST registration.

Visit the GST portal.
Log in using your username and password.
Navigate to the 'Revocation of Cancellation of GST Registration' link.
Fill in the reason for GST revocation.
Attach supporting files.
Verify the application.
Select the authorized signatory's name.
Specify the application filing location.
Save the application for future reference.
Choose either DSC or EVC mode to submit.
Use the chosen option (DSC or EVC) to sign the form.
Verify your identity through OTP.
Upon successful submission, an ARN will be generated.
You will receive confirmation via SMS and email.
The tax official reviews the application and makes a decision.
Upon approval, the GSTIN status changes to 'Active.'

Offline Application Procedure for Revocation of Cancellation of GST Registration

Offline revocation involves following these steps:

Step 1

Fill Form GST REG-21.

Step 3

Officer assesses reasons within 30 days

Step 2

Submit the applicationon Common Portal within 30 days of cancellation order.

Step 4

Officer issues Form GST REG-05 order for approval or rejection.

Using Bonds or LUT: A Deep Dive

LUT and bonds confirm exporter commitment, guiding when to opt for them and claiming IGST refunds for exports.

Unqualified Applicants

Certain categories like UIN holders, GST practitioners, or voluntarily cancelled registrations are ineligible for revocation.

Eligibility for GST Return Filing

Regular enterprises with an annual aggregate revenue of more than ₹5 crore are eligible for GST return filing
Taxpayers who did not choose the QRMP (Quarterly Return Monthly Payment) plan must file two monthly returns and one yearly return under the GST system
QRMP filers must submit nine GSTR files annually, including four GSTR-1 and three GSTR-3B forms, along with an annual return
Composition dealers must file five GSTR files annually, comprising four statement-cum-challans in CMP-08 and one annual return, GSTR-4

Documents Required for GST Return Filing

Invoices issued to persons with GSTIN (B2B invoices).
nvoices issued to persons without GSTIN (B2C invoices) with a total value exceeding ₹2.5 lakhs.
Consolidation of inter-state sales.
HSN-wise summary of all goods sold.
Any debit or credit notes or advance receipts.

Due Dates for GST Returns

Staying compliant with GST due dates is vital to avoid late payment charges and interests. Fincto provides updated information on due dates for the financial years 2021-2022 and 2022-2023. Keeping clients informed of these updates can help taxpayers stay on top of their compliance requirements and ensure timely filing of GST returns.

GST Return Filing under the Composition Scheme

Taxpayers registered under the Composition Scheme must file taxes using CMP-08 every quarter and file GSTR-4 annually. The due date for the GST return for Composition Scheme registrants is the 18th of the month following each quarter.

Choose Fincto for a Seamless GST Return Filing Experience

Fincto provides a hassle-free GST return filing experience with the support of a team of dedicated experts. Fincto offers a seamless GST compliance journey. It's commendable to see such dedication to assisting taxpayers in their GST return filing processes.

Why Fincto for Your LUT and Bonds Filing Needs?

Fincto is a trusted partner for handling Letter of Undertaking (LUT) and bonds for GST exports, offering precision and expertise in filing these complex documents.

Expertise in GST Compliance

Fincto's professionals understand GST regulations, including LUT and bonds, ensuring accurate filings and compliance.

Seamless Process

Fincto simplifies filing LUT and bonds with user-friendly, step-by-step guidance, ensuring accurate and efficient documentation completion.

Tailored Solutions

Fincto provides tailored solutions for businesses, catering to small exporters and large enterprises, ensuring LUT and bonds filing aligns with operations.

Error-Free Filing

Fincto ensures accurate LUT and bonds filing, reducing compliance issues and delays by minimizing rejection risks and ensuring timely processing.

Time and Cost Efficiency

Fincto's digital platform streamlines LUT and bond filing, saving time, resources, and ensuring compliance.

Personalized Support

Fincto is your GST compliance partner, providing customer support to address queries, clarify processes, and ensure a seamless experience.

Stress-Free Compliance

Fincto simplifies compliance processes, allowing you to focus on core business activities while handling LUT and bonds filing needs.

Transparency and Security

Fincto prioritizes transparency and security, handling sensitive information securely and providing real-time updates on filing status.

What is a GST Certificate?

A GST Certificate is an important document issued by the Indian government which proves that a business is registered under GST. The certificate contains crucial information like the GST identification number, name, and address of the business. With a GST Certificate on hand, businesses can easily charge and collect GST, apply for loans, and participate in tenders.

GST Tax Rates

GST tax rates can range from 0% to 28% depending on the type of goods or services. essential items being taxed at 0%, while luxury items and certain services fall under the 28% bracket, gold is taxed at 3%, and crude oil and natural gas at 6%.Rates may vary, so it Is essential to check the current rates before transactions.

GSTIN

GSTIN (Goods and Services Tax Identification Number) is a unique identification number given to each GST taxpayer. It is used to verify GST registration on the GST portal.

Penalties for Failure to Register for GST

According to Section 122 of the CGST Act, there is a direct penalty for taxable persons failing to register for GST online.

Voluntary Registration Under GST for Companies with Turnover Below ₹20 Lakhs

Companies with turnover below ₹20 lakhs can voluntarily register for GST, enjoying advantages like input credit, inter-state selling with no restrictions, registering on e-commerce platforms, and gaining a competitive edge.

GST Return Filing

GST return filing is the process of submitting details of sales, purchases, and taxes to the government. All registered taxpayers under GST must must file returns regularly, regardless of transactions during the period.

Conclusion

Fincto simplifies LUT and bonds filing with its expertise, user-friendly platform, personalized support, and commitment to accuracy. Choose Fincto for a stress-free GST compliance journey.

With Fincto.io's expert guidance, you can navigate the GST registration process with confidence and focus on your business's growth and success.

Why Choose Fincto?

Fincto.io simplifies GST registration revocation by offering a simplified approach. Our experts guide users through the application process, ensuring compliance and smooth operation. They manage portal-based formalities, file timely tax returns, and ensure a seamless and efficient process.

DIN and DSC for two Directors
Drafting of MoA & AoA
Registration fees and stamp duty
Incorporation certificate (COI)
Company PAN and TAN
Zero balance current account
GST Registration
EPF & ESIC Registration

Trust Fincto to simplify your business formation process, enabling a seamless transition from idea to a legally recognized entity. Get ready for a well-informed, growth-oriented entrepreneurial journey with Fincto.

Understanding Key Terms

Amendment

A modification to the existing provisions of a corporation's articles of incorporation

DSC (Digital Signature Certificate):

Issued by certifying authorities for electronic document signing.

Board of Directors

The elected governing body responsible for a corporation's operation. Certificate of Incorporation: The document filed to create a corporation

DIN (Director Identification Number):

A unique identification number for directors. Dissolution: The process that legally ends a corporation's existence

Incorporation

The act of forming a corporation under specific jurisdiction laws

Limited Liability Company (LLC)

An entity with limited personal liability and pass-through taxation

Limited Personal Liability

Protection from the debts and claims against a company

Name Reservation

The process to secure exclusive use of a corporate name for a specific period

Registered Office

The statutory address of a corporation

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