The Economic growth in India is on the path to recovery with the passing of COVID-19’s Second Wave. However, the lockdown enforced during COVID -19 has a significant negative impact on the MSME sector. Many industries are still reeling from the consequences of the shutdown. The MSME sector continues to struggle. Many GST registered merchants are unable to comply with GST rules and regulations requirements and file GST returns on time owing to a lack of revenue stability. In this article, we will explain to you how to activate cancelled GST registration.
As a result, their GST registration is already cancelled. In India, GST registration is required, and failing to do so is considered a tax evasion offense that can result in hefty fines. So, if you’re running a business, be sure you’ve registered for GST and if your GST registration was cancelled, do not worry.
What is GST?
GST ( Goods Service Tax) is an indirect tax in India. Because GST is levied at each stage of the manufacturing process, it is a multi-staged tax.
For the purpose of tax collection, GST has five distinct slabs: 0%, 5%, 12%, 18%, and 28%. If you fail to register for GST, you might face hefty penalties and fines. Thus, GST Registration is a must. Learn more about GST at – Types Of GST Registration In India & GST Registration PDF
What is cancelled GST registration?
When the National Tax Department eliminates a taxpayer’s assigned GSTIN, it signifies that the taxpayer whose GSTIN has been revoked is no more a GST enrolled entity. He would also no longer be responsible for paying or collecting GST. This state is called cancelled GST Registration and can seriously damage the business
There are a variety of businesses that require GST registration. For example, e-Commerce Businesses, businesses having turnover of more than 40 Lakhs, transportation of goods worth more than 50,000/- from one state to another, etc. require mandatory GST Registration. Furthermore, only taxpayers having GST Registration and doing timely as well as correct GST Return Filing can generate e-way bills. Thus, If a firm continues to operate after the suspension of GST, it will be subject to a significant penalty.
When is GST Registration cancelled?
For specific reasons, the GST registration or GSTIN issued might be cancelled. The department may begin the cancellation on its own initiative, or the registered individual may ask for the cancellation of their registrations. The legal heirs of a deceased individual can also seek cancellation of the GST registration. Some other reasons where GST Registration can be cancelled and you might need to know how to activate cancelled GST registration are as follows.
- a taxpayer has broken any of the Act’s or its rules’ clauses, or a taxpayer has broken any of the Specific acts or its rules’ provisions; or
- a taxpayer paying tax per section 10 has failed to file returns for three tax periods in a row; or
- any registered person, besides a person listed in paragraph (b), has not produced returns for a period of six months; or any individual who has obtained voluntary registration under section 25 sub-section (3) has not begun business after six months following registration; or
- registration was obtained via deception, willful misrepresentation, or concealment of facts.
Stepwise Guide on How to activate cancelled GST Registration
You can activate cancelled GST Registration only thirty days after the notice is served. However, When a person’s GST Registration has been voluntarily cancelled, he or she cannot reverse it. The stepwise guide on how to activate cancelled GST Registration is as follows.
- first, go to the GST official website to file an application then, log in into the portal.
- Afterward, select the service option. When you select the service button, you will be presented with a number of alternatives from which to pick. The “application for revocation of cancelled registration” button must be selected. A new page will show on your screen when you press the button. There will be a choice such as a reason for revocation.’ Now you must submit the final revocation form. Including the form, attach all relevant documentation.
- When you click the submit button, you will be given an OTP number.
- Fill in the OTP number to validate the form on the site after receiving it.
- Your application will be reviewed by the officer, and if he is satisfied, he will proceed further. Thus, the officer should be pleased with the grounds you indicated in the revocation application.
As we can see, the steps to activate cancelled GST Registration are complicated. Furthermore, it can consume a lot of your valuable time. Thus, you can take assistance from our expert team who can professionally aid you in activating cancelled GST Registration while you sit comfortably at your home.
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