MM TAX CLUB

49th GST Council meeting, held at vigyan bhawav New Delhi, chaired by Union Finance Minister, Nirmala Sitharaman on 18th February 2023

One of the key changes proposed in the said meeting is for the application for revocation of GST cancellation.

The relief has been given for the current revocation application as well as old GST cancellation for which the prescribed time limit to file revocation application has been lapsed.

Relief for current Revocation Application

In 49^th GST council meeting the council has recommended to increase the time limit for filing application for Revocation of cancelled GST Registration.

Current provision in this regard;

When the registration has been cancelled by the proper officer on his own motion and not on the basis of an application by the registered person, then the registered person, whose registration has been cancelled, can submit an application for revocation of cancellation of registration, in FORM GST REG-21, to the Proper Officer, within a period of thirty days from the date of the service of the order of cancellation of registration at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. The period of 30 days can be extended by:

• by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
• by the Commissioner, for a further period not exceeding thirty days, beyond the period specified above.

Changes proposed in 49^th GST Council meeting;-

The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that -

The time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days;

where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorised by him in this behalf for a further period not exceeding 180 days

So after the proposed amendment, the taxpayer will have longer period (i.e 90 days instead 30 days) to file Application for Revocation of GST registration cancellation,

Further in existing provision Additional Commissioner or the Joint Commissioner of GST are empowered to extend current time limit for not exceeding 30 days whereas the Commissioner is empowered to extend a further period not exceeding thirty days, beyond the period specified above. So in total, a taxpayer have maximum period including extension given by the Department is 90 days (30 days + 30 days + 30 days)

While after proposed changes, the registered person will have a maximum period of 270 days to file the Application for Revocation of cancellation of GST Registration.

Relief for the past period GST Registration cancellation

For past period whose GST Registration is cancelled and time period to file Revocation application is already expired for those cases the council has recommended to bring amnesty scheme 2023 in this regard;

The Council has also recommended that an amnesty may be provided in the past cases, where registration has been cancelled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain conditions.