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Revocation of GST Registration Cancellation

  • Posted By SuperCA
  • On 19 December

Revocation of GST Registration Cancellation


Recently, the Patna High Court bench of Chief Justice Sanjay Karol & Justice S Kumar has held that the order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences.

In Rakesh Roshan vs Commissioner of State Tax, the petitioner’s proceedings were ex parte in nature. He has prayed for quashing of the below notices & order received,

  • He has received notice DRC -01 dated 19.02.2020 demand of tax on ground of excess claim of Input tax credit (ITC) for tax period 2019-20.
  • He further received order in Form DRC -07 dated 21.03.2020 passed by Adjudicating Authority for demand of tax on ground of excess claim of Input tax credit (ITC) for tax period 2019-20.
  • Order dated 26.03.2022 for dismissing the appeal for the period 2019-20.
  • Order dated 29.03.2022 & 30.03.2022 for attaching his bank account for recovery of the whole amount tax, interest and penalty.

The court held that the assessing authority shall pass a fresh order only after affording adequate opportunity to all concerned, including the writ petitioner and during pendency of the case, no coercive steps shall be taken against the petitioner.

Cancellation of Registration

Cancellation of GST Registration means the permanent closure of the GSTIN of the taxpayer.

After cancellation the taxpayer will not be a GST registered person any more and hence will not have to pay or collect GST or claim ITC anymore and accordingly, need not file GST returns. .

Taxpayers would be free from filing returns or upload invoices for the period after the date of cancellation mentioned in the cancellation order.

Cancellation of GSTIN can occur in two ways

  1. Cancellation by the Registered Person’s will

The registration can be canceled by filing an application on the GST Portal citing the appropriate reason

  1. Cancellation by the Proper Officer Suo-moto.

In certain circumstances, the registration is canceled by the tax officer in cases such as non-filing of returns, fraud, contravention of provisions of GST Act etc.

Forms Applicable while Cancellation of GST registration


When the taxpayer himself applies for the cancellation of registration, the application for cancellation has to be made in form GST REG 16.


An authorized GST officer can provide the notice of show cause/cancellation to the registered taxpayer and its business entity by using the REG 17 form requiring him to show cause, within a defined time period from the date of the service of such notice, citing reason on why his registration shall not be canceled.


The show cause notice can be replied by the means of furnished GST REG 18 form under the specified time period. Taxpayers must reply to the notice within 7 days of issuance of the notice giving the explanation or citing valid reasons of safeguarding the cancellation of registration.


The GST REG 19 form is used by a GST officer for issuing a formal order for the cancellation of GST registration. The order for sending the notice must be under 30 days from the date of application or the response date in GST REG 18 form.


The show cause notice when satisfied by the GST officer or the reply is found to be acceptable, the proper officer will drop the proceedings and pass an order in form GST REG–20.


This form is used for applying for revocation of cancellation of GST


The GST REG 22 form is used for giving the order for revocation of cancellation of GST Registration


This is a show cause notice for rejection of application for revocation of cancellation of GST Registration.


This form is used for replying to the notice for rejection of application for revocation of cancellation of registration

Some Reasons For Cancellation of Registration by tax officer

➤ The registered taxable person does not conduct any business from the declared place of business

➤ The registered person has contravened any provisions of the Act or the rules made thereunder.

➤ Taxpayers registered under Composition Scheme has not furnished returns for three consecutive tax periods

➤ Utilization of ITC from electronic credit ledger to discharge more than 99% of the tax liability for specified taxpayers violating Rule 86B – with the total taxable value of supplies exceeding Rs.50 lakh in the month, with some exceptions

➤ Any person who has taken voluntary registration but doesn’t start business within 6 months from the date of registration.

➤ Taxpayer issues invoice or bill without supply of goods/services in violation of the provisions of this Act, or the rules made thereunder

➤ Taxpayer violates the anti-profiteering provisions (for example, not passing on benefit of ITC to customers)

➤ If found that the registration has been obtained by means of fraud, willful misstatement or suppression of facts.

➤ Taxpayer avails input tax credit in violation of the provisions of section 16 of the Act or the rules.

Time Limit for Revocation as per law

Any registered taxable person can apply for revocation of cancellation of GST registration within a period of 30 days from the date of service of order of cancellation of GST registration. It must be noted that the application for revocation can be done only during the circumstances when the registration has been canceled by the proper officer on his own motion and cannot be used when GST registration was canceled voluntarily by a taxpayer.

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