GST registration: CBIC says businesses can apply to revoke their cancelled registrations by July 22

The Central Board of Indirect Taxes and Customs (CBIC) has allowed businesses to apply for revocation of cancellation of their GST registrations by July 22, provided they file their pending returns and pay due taxes, PTI reported. These businesses earlier had their GST registrations cancelled due to non-filing of tax returns.

The report added that this move comes after taxmen noticed businesses, whose registrations were cancelled, continuing to operate without any registration. They would not apply for revocation, but instead, would apply for fresh registration. This way, they could evade taxes which were due under earlier registration.

Through this move, CBIC said it is "providing a one-time opportunity to apply for revocation of cancellation of GST registration by July 22, 2019, for those entities for whom cancellation order has been passed up to March 31, 2019."

The CBIC added that where the registration has been cancelled with effect from the date of the order, all returns due till the date of such cancellation should be furnished before filing the application for revocation.

However, where the registration has been cancelled with retrospective effect, CBIC allowed filing of revocation application provided that all returns from the date of cancellation till the date of revocation order will be filed within 30 days from the date of the revocation order.

CBIC had earlier asked its field officers to be cautious while processing fresh GST applications from businesses whose registrations had been cancelled previously.

Earlier this month, Prime Minister Narendra Modi had told traders that the implementation of GST has brought transparency in doing business.

He had said that there was a control on price rises as “98 percent of things are under the 18 percent GST tax slabs.”

In March, the GST Council notified that from April 1, 2019, there would be two threshold limits for exemption from registration and payment of GST. This applied to MSMEs which are suppliers of goods.

The limits notified were Rs 40 lakh and Rs 20 lakh, and states would be given the option to decide on the limit. The threshold for service provider MSMEs would continue to be Rs 20 lakh, but in special category states, this threshold would be Rs 10 lakh.

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