GST cancellation

GST cancellation can be initiated by either the taxpayer or the GST authorities.

• Suo moto cancellation: The GST authorities can suo moto cancel a taxpayer’s GST registration if they breach any of the GST laws or regulations. For example, a taxpayer’s GST registration could be cancelled for non-filing of GST returns or for making fraudulent claims.

Once a taxpayer’s GST registration has been cancelled, they will no longer be able to:

• Avail of input tax credit (ITC)
• File GST returns
• Issue GST invoices
• Collect GST from their customers

Revocation of GST registration cancellation

A taxpayer whose GST registration has been cancelled may be able to apply for revocation of the cancellation if they can demonstrate that they have rectified the reasons for the cancellation.

The revocation application must be submitted within 30 days of the order of cancellation. The GST authorities will consider the application and make a decision on whether to revoke the cancellation.

To be eligible for revocation of GST registration cancellation, the taxpayer must:

• Have rectified the reasons for the cancellation
• Be in compliance with all applicable GST laws and regulations
• Pay any outstanding taxes, penalties, and interest

Here is a table summarizing the key differences between GST cancellation and revocation of GST registration cancellation:

In other words, GST cancellation is the removal of a GST registration, while revocation of GST registration cancellation is the restoration of a GST registration that has been cancelled. Taxpayers who are considering applying for revocation of GST registration cancellation should seek professional advice from your SRM.