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Challenges to overcome in Revocation of Cancellation of Registration under GST
CBIC through Removal of Difficulty Order No. 01/2020-Central Tax dated 25.06.2020 seeks to extend the time limit for filing an application for revocation of cancellation of registration for specified taxpayers. However, GSTN hasn’t started the process on the common portal.
Recently, GST Update on the common portal that says
1. In case your application for revocation of cancellation of registration was rejected by the tax authorities before 12/6/2020 and you wish to avail the benefit of RoD order 01/2020 dated 25.06.2020, as an interim measure, you can request the appellate authority or the higher authority to pass a simple offline order on it for restoration of the application.
2. Based on such order, your jurisdictional authority can restore the application for revocation of cancellation. You need to apply post login:- Registration- Restore Registration- Restore Revocation. You have to enter ARN of the order and would require to upload scanned copy of the order passed after clicking “Appeal in favour”.
3. GSTN is working on removing the present restriction on the reapplication of the revocation of cancellation application. After that filing of revocation of application would become a one-step process. It is expected to be available shortly. The above-suggested solution is an interim measure.
Let us understood, the short story of Revocation of Cancellation of Registration by travel in GST law:
Section 29 – Cancellation of Registration
(2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,- –
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.
Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.
Section 30 – Revocation of cancellation of registration
(1) Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order.
“Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended,
(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).”
(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application: Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.
Section 107 – Appeals to Appellate Authority
(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.
(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.
Section 169 – Service of notice in certain circumstances
(1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely:—
(c) by sending a communication to his e-mail address provided at the time of registration or as amended from time to time; or
(d) by making it available on the common portal; or
Removal of Difficulties Order No. 01/2020-Central Tax New Delhi, the 25th June, 2020 issued by CBIC that says about the
- Cancellation of Registration under Section 29 of the act;
- Service of Notice under section 169 of the said act;
- Application for revocation of cancellation of the registration within thirty days from the date of service of the cancellation order under section 30 of the said act;
- Filing of appeal by any person aggrieved by any decision or order passed by an adjudicating authority within three months from the date on which the said decision or order is communicated to such person and allow it to be presented within a further period of one month;
A large number of registrations have been cancelled under sub-section (2) of section 29 of the said Act by the proper officer by serving notices as per clause (c) and clause (d) of sub-section (1) of section 169 of the said Act and the period of thirty days provided for application for revocation of cancellation order in sub-section (1) of section 30 of the said Act, the period for filing appeal under section (1) of section 107 of the said Act and also the period of condoning the delay provided in sub-section (4) of Section 107 of the said Act has elapsed;
the registered persons whose registration have been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the said Act are unable to get their cancellation of registration revoked despite having fulfilled all the requirements for revocation of cancellation of registration;
For the removal of difficulties, it is hereby clarified that for the purpose of calculating the period of thirty days for filing application for revocation of cancellation of registration under sub-section (1) of section 30 of the Act for those registered persons who were served notice under clause (b) or clause (c) of sub-section (2) of section 29 in the manner as provided in clause (c) or clause (d) of sub-section (1) of section 169 and where cancellation order was passed up to 12th June, 2020, the later of the following dates shall be considered:-
a) Date of service of the said cancellation order; or
b) 31st day of August, 2020.
Hence, For apply for revocation of cancellation of registration, the time limit has been extended to 31st Aug, 2020. For an interim and early measure, ask from your jurisdictional officer to pass an offline order and apply against such order online after post-login as per above procedure.
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