The Complete Guide: From GST Registration to Cancellation and Revocation

Introduction:The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. Obtaining GST registration is a fundamental requirement for businesses exceeding the prescribed threshold or involved in inter-state supply. However, business circumstances can change, leading to the need for GST registration cancellation. In certain cases where the cancellation was not warranted, the option for revocation exists. This detailed article will guide you through the entire lifecycle of GST registration, from the initial application to cancellation and the process of revocation, covering every essential aspect along the way.

Phase 1: GST Registration – Laying the Foundation

GST registration is the process by which a business gets identified under the GST regime. Upon successful registration, the business is assigned a unique 15-digit Goods and Services Tax Identification Number (GSTIN).

1. Eligibility for GST Registration:

Businesses are required to register for GST if they meet any of the following criteria:

• Aggregate Turnover Threshold:
  • For suppliers of goods, the threshold is ₹40 lakhs in most states and ₹20 lakhs in special category states (e.g., North-Eastern states).
  • For suppliers of services, the threshold is ₹20 lakhs in most states and ₹10 lakhs in special category states.
  • The threshold is calculated on an all-India basis for all businesses under the same Permanent Account Number (PAN).
• Inter-State Supply: Any business involved in the supply of goods or services from one state to another, irrespective of the turnover.
• Casual Taxable Person: Individuals or businesses who occasionally supply goods or services in a state where they do not have a fixed place of business.
• Non-Resident Taxable Person: Individuals or businesses from outside India supplying goods or services within India.
• Persons Liable to Pay Tax under Reverse Charge Mechanism: Certain categories of recipients who are liable to pay GST instead of the supplier.
• Input Service Distributor (ISD): An office of a supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues tax invoices or credit notes or debit notes for the purpose of distributing the input tax credit.
• Online Information and Database Access or Retrieval (OIDAR) Services: Suppliers of online information and database access or retrieval services from outside India to unregistered persons in India.
• E-commerce Operators and Aggregators: Entities that operate or manage electronic commerce platforms.

2. Documents Required for GST Registration:

Before starting the registration process, ensure you have the necessary documents ready. The specific documents required may vary based on the type of business entity. Here’s a general list:

• For Proprietorship:
  • PAN card of the proprietor.
  • Aadhaar card of the proprietor.
  • Bank account details (statement or cancelled cheque).
  • Address proof of the business premises (electricity bill, rent agreement, etc.).
  • Digital Signature Certificate (DSC) of the proprietor.
• For Partnership Firm/Limited Liability Partnership (LLP):
  • PAN card of the partnership firm/LLP.
  • PAN cards and Aadhaar cards of all partners/designated partners.
  • Partnership deed/LLP agreement.
  • Bank account details of the firm/LLP.
  • Address proof of the business premises.
  • DSC of the authorized signatory.
• For Companies:
  • PAN card of the company.
  • Certificate of Incorporation.
  • PAN cards and Aadhaar cards of all directors.
  • Bank account details of the company.
  • Address proof of the business premises.
  • DSC of the authorized signatory.
  • Board resolution authorizing the signatory.
• For Other Entities (Trusts, Societies, etc.): Specific documents as per their constitution.

3. Step-by-Step Process for GST Registration:

The GST registration process is primarily online through the GST portal (www.gst.gov.in). It involves two main parts:

• Part A Registration:
  1. Visit the GST portal.
  2. Under the “Services” tab, click on “Registration” and then “New Registration.”
  3. Select the “Taxpayer” option under “I am a.”
  4. Choose the appropriate “State” and “District.”
  5. Enter the “Name of the Business” (as mentioned on the PAN card).
  6. Enter the “PAN of the Business” or “PAN of the Applicant” (for proprietorship).
  7. Enter your “Email Address” and “Mobile Number.” Ensure these are active as OTPs will be sent for verification.
  8. Click on “Proceed.”
  9. You will receive two separate OTPs on your registered email ID and mobile number. Enter these OTPs in the respective fields and click “Proceed.”
  10. Upon successful verification, a Temporary Reference Number (TRN) will be generated and displayed. Note down this TRN as it will be used to complete Part B of the registration.
• Part B Registration:
  1. Return to the GST portal homepage.
  2. Under the “Services” tab, click on “Registration” and then “New Registration.”
  3. Select the “Temporary Reference Number (TRN)” option.
  4. Enter the TRN generated in Part A and click “Proceed.”
  5. You will receive an OTP on your registered mobile number and email ID. Enter the OTP and click “Proceed.”
  6. On the next page, you will see the status of your application as “Draft.” Click on the “Edit” icon (pencil symbol) to start filling out the detailed application form.
  7. The application form is divided into several sections:
     • Business Details: Provide details about your business name, trade name, constitution, etc.
     • Promoter/Partners Details: Enter personal details, PAN, Aadhaar, and address of promoters, partners, or directors.
     • Authorized Signatory Details: Provide details of the person authorized to act on behalf of the business.
     • Principal Place of Business: Enter the complete address of your main business location and upload supporting documents. You can also add details of additional places of business if applicable.
     • Goods and Services: Select the main goods and services your business deals with (use HSN codes for goods and SAC codes for services).
     • Bank Accounts: Provide details of your bank accounts.
     • State Specific Information: Enter any state-specific details if required.
     • Aadhaar Authentication/E-KYC: You may be required to undergo Aadhaar authentication or e-KYC for verification.
  8. After filling in all the required details and uploading the necessary documents, verify the application. You can use either DSC or e-Signature (based on Aadhaar OTP).
  9. Once the verification is successful, your application will be submitted. You will receive an Application Reference Number (ARN) on your registered email ID and mobile number.
• Verification and Approval:
  • The GST officer will review your application and the submitted documents.
  • They may raise queries or seek clarifications. You will need to respond to these queries within the stipulated time.
  • If the officer is satisfied with the application and documents, they will approve your registration, and a GSTIN along with a registration certificate (Form GST REG-06) will be issued. You can download this certificate from the GST portal.
  • In some cases, physical verification of the business premises may be conducted before approval.

4. Types of GST Registration:

Depending on the nature of the business, there are different types of GST registration:

• Regular Taxpayer: The most common type of registration for businesses with turnover above the threshold.
• Composition Scheme: An optional scheme for small taxpayers (mainly suppliers of goods) with an aggregate turnover of up to ₹1.5 crore (₹75 lakhs for special category states). It offers a simplified tax compliance regime with lower tax rates but restricts the ability to claim input tax credit.
• Casual Taxable Person: For those who supply goods or services occasionally in a state where they don’t have a fixed place of business. This registration is valid for a maximum of 90 days and can be extended.
• Non-Resident Taxable Person: For individuals or businesses from outside India making taxable supplies in India. This registration is also valid for a limited period.
• Input Service Distributor (ISD): For businesses that receive invoices for input services and distribute the input tax credit to their branches.
• E-commerce Operator: For entities that own, operate, or manage digital or electronic facilities or platforms for electronic commerce.

5. GST Identification Number (GSTIN):

Upon successful registration, you will be assigned a 15-digit GSTIN. This number is crucial for all your GST-related activities, including raising invoices, filing returns, and claiming input tax credit. The structure of the GSTIN is as follows:

• First two digits: State code.
• Next ten digits: PAN of the business.
• Thirteenth digit: Entity code (usually ‘1’ for the first registration).
• Fourteenth digit: Blank (usually ‘Z’).
• Fifteenth digit: Check digit.

Phase 2: GST Cancellation – When the Need Arises

Circumstances may arise where a registered taxpayer needs to cancel their GST registration. This could be voluntary or initiated by the GST department.

1. Reasons for GST Registration Cancellation:

• Voluntary Cancellation (Application by Taxpayer):
  • Discontinuation of business.
  • Transfer of business due to sale, merger, demerger, amalgamation, lease, or disposal.
  • Change in the constitution of the business.
  • Turnover falling below the prescribed threshold.
  • The business ceasing to be liable for GST registration.
• Suo Moto Cancellation (Cancellation by GST Officer): The GST officer can initiate cancellation of registration under the following circumstances:
  • Contravention of any provisions of the GST Act or rules.
  • Failure to file returns for a continuous period (three months for regular taxpayers, six consecutive tax periods for composition taxpayers).
  • Not conducting any business from the declared place of business.
  • Issuance of invoices or bills without actual supply of goods or services.
  • Violation of anti-profiteering provisions.
  • Registration obtained by means of fraud, willful misstatement, or suppression of facts.

2. Who Can Apply for Cancellation?

• The registered taxpayer (or their authorized signatory) can apply for voluntary cancellation.
• In case of death of the proprietor, the legal heir can apply for cancellation.

3. Step-by-Step Process for GST Cancellation:

The process for voluntary GST cancellation is also online through the GST portal.

• Filing the Application (Form GST REG-16):
  1. Log in to the GST portal using your credentials.
  2. Under the “Services” tab, click on “Registration” and then “Application for Cancellation of Registration.”
  3. The application form (Form GST REG-16) will open.
  4. Select the “Reason for Cancellation” from the dropdown menu.
  5. Enter the “Date from which cancellation is sought.”
  6. Provide details of any stock held on the date of cancellation (raw materials, semi-finished goods, finished goods).
  7. Provide details of any tax liability outstanding.
  8. You may also be required to provide details of the payment made against the outstanding liability.
  9. Upload any supporting documents, if required.
  10. Verify the application using either DSC or e-Signature.
  11. Once the verification is successful, your cancellation application will be submitted, and you will receive an ARN.
• Verification by the GST Officer:
  • The GST officer will examine your cancellation application.
  • They may issue a notice in Form GST REG-17 asking you to show cause why your registration should not be cancelled.
  • You will be required to reply to this notice in Form GST REG-18 within the specified time (usually seven working days).
  • The officer may conduct further inquiry or inspection if deemed necessary.
• Issuance of Cancellation Order (Form GST REG-19):
  • If the GST officer is satisfied with your application or the reply to the show-cause notice (in case of suo moto cancellation initiated by the department), they will issue a cancellation order in Form GST REG-19.
  • The order will specify the effective date of cancellation.

4. Effective Date of Cancellation:

• In case of voluntary cancellation, the effective date will be determined by the GST officer, considering the date mentioned in your application or a later date.
• In case of suo moto cancellation, the effective date will be mentioned in the cancellation order issued by the GST officer.

5. Obligations After Cancellation:

Even after the cancellation order is issued, certain obligations remain:

• Filing Final Return (Form GSTR-10): Every registered person whose registration has been cancelled (voluntarily or suo moto) must file a final return in Form GSTR-10 within three months of the date of cancellation or the date of the cancellation order, whichever is later. This return provides details of all outward and inward supplies made during the period from the end of the last return period up to the date of cancellation.
• Payment of any outstanding dues: You are still liable to pay any outstanding tax, interest, penalty, or other dues even after the cancellation of registration.

Phase 3: GST Revocation of Cancellation – Reinstating the Registration

If a GST registration has been cancelled by the GST officer suo moto, and the registered person believes the cancellation was not justified, they can apply for revocation (reinstatement) of the cancelled registration.

1. Meaning of Revocation:

Revocation of GST cancellation means the cancelled GST registration is restored, and the taxpayer is considered registered under GST again from the effective date of revocation.

2. Conditions for Revocation:

Revocation is possible only when the registration was cancelled by the GST officer suo moto. If the cancellation was done based on the taxpayer’s own application, revocation is generally not allowed.

3. Who Can Apply for Revocation?

The registered person whose registration has been cancelled by the GST officer can apply for revocation.

4. Time Limit for Application of Revocation:

An application for revocation of cancellation of registration can be filed within 90 days from the date of the service of the cancellation order. The Commissioner may, on sufficient cause being shown and for reasons to be recorded in writing, extend this time limit by a further period not exceeding 30 days.

5. Step-by-Step Process for GST Revocation:

The application for revocation is also filed online through the GST portal.

• Filing the Application (Form GST REG-21):
  1. Log in to the GST portal using your credentials.
  2. You will see a notification on your dashboard regarding the cancellation of your registration. Click on the link to proceed with the revocation application. Alternatively, under the “Services” tab, click on “Registration” and then “Application for Revocation of Cancelled Registration.”
  3. Select the “Reason for Revocation” from the dropdown menu. You need to provide a valid reason why the cancellation should be revoked.
  4. Provide details of the grounds for revocation. Explain why the reasons for cancellation by the officer were not valid or how you have rectified the issues that led to the cancellation.
  5. If there are any pending returns, you will be required to file them before applying for revocation.
  6. Upload any supporting documents to justify your request for revocation.
  7. Verify the application using either DSC or e-Signature.
  8. Once the verification is successful, your revocation application will be submitted in Form GST REG-21, and you will receive an ARN.
• Show Cause Notice (Form GST REG-23):
  • Upon receiving your revocation application, the GST officer will examine it.
  • If the officer finds any discrepancies or requires further information, they may issue a show cause notice in Form GST REG-23 asking you to explain why your revocation application should not be rejected.
• Reply to Show Cause Notice (Form GST REG-22):
  • If you receive a show cause notice, you need to file a reply in Form GST REG-22 within the time specified in the notice.
  • Your reply should clearly address the points raised by the GST officer and provide any necessary clarifications or supporting documents.
• Order of Revocation (Form GST REG-20) or Rejection of Revocation (Form GST REG-05):
  • After considering your application and any reply to the show cause notice, the GST officer will pass an order.
  • If the officer is satisfied that the grounds for cancellation have been adequately addressed and it is appropriate to revoke the cancellation, they will issue an order of revocation in Form GST REG-20. This order will specify the date from which your registration is reinstated.
  • If the officer is not satisfied, they will reject your revocation application by issuing an order in Form GST REG-05, stating the reasons for rejection.

6. Consequences of Revocation:

• Upon revocation of cancellation, your GST registration will be active again from the date specified in the revocation order.
• You will be required to comply with all the regular GST provisions, including filing returns and paying taxes, from the date of revocation onwards.

Conclusion:

The journey from GST registration to potential cancellation and revocation involves a structured process with specific requirements at each stage. Understanding these steps and ensuring compliance is crucial for businesses operating under the GST regime. While registration provides the legal framework for your business to collect and remit GST, cancellation marks the cessation of this obligation. However, the provision for revocation offers a chance to rectify unintended cancellations. By diligently following the procedures and maintaining accurate records, businesses can navigate this lifecycle smoothly and ensure adherence to the GST law. Always refer to the official GST portal and consult with tax professionals for the latest updates and specific guidance related to your business.