Blog on Circular No. 99/18/2019-GST: Revocation of Cancelled GST Registration
<h4><strong>Introduction</strong></h4><p>The <strong>Central Board of Indirect Taxes and Customs (CBIC)</strong> issued <strong>Circular No. 99/18/2019-GST</strong> on <strong>April 23, 2019</strong>, providing clarity on <strong>revocation of cancelled GST registrations</strong>. This circular addresses the <strong>one-time opportunity granted to taxpayers whose GST registrations were cancelled due to non-filing of returns</strong>. The <strong>Removal of Difficulty Order (RoD) No. 05/2019</strong> allows such taxpayers to apply for revocation of cancellation by <strong>July 22, 2019</strong>, subject to fulfilling compliance requirements.</p><hr><h3><strong>Key Highlights of the Circular</strong></h3><h4><strong>1. GST Registration Cancellation Due to Non-Filing of Returns</strong></h4><ul><li>As per <strong>Section 29(2) of the CGST Act</strong>, GST registrations were cancelled for taxpayers who <strong>failed to file FORM GSTR-3B or GSTR-4</strong>.</li><li>The <strong>cancellation was applied retrospectively or from the date of the cancellation order</strong>.</li><li>Many affected taxpayers <strong>could not apply for revocation within 30 days</strong>, as required under <strong>Section 30 of the CGST Act</strong>.</li></ul><h4><strong>2. One-Time Opportunity for Revocation of Cancelled GST Registration</strong></h4><ul><li><strong>RoD No. 05/2019 (April 23, 2019)</strong> grants a <strong>one-time relief</strong> for taxpayers whose registrations were cancelled <strong>on or before March 31, 2019</strong>.</li><li><strong>Deadline for revocation application:</strong> <strong>July 22, 2019</strong>.</li><li>Taxpayers <strong>must file all pending returns before applying for revocation</strong>.</li></ul><h4><strong>3. Filing of Returns Before and After Revocation</strong></h4><ul><li><strong>First Proviso of Rule 23(1):</strong><ul><li><strong>Before applying for revocation, all pending returns (up to cancellation date) must be filed, and tax dues must be paid</strong>.</li></ul></li><li><strong>Second Proviso of Rule 23(1):</strong><ul><li><strong>For cases where registration is cancelled from the date of the cancellation order, returns from the date of cancellation till the revocation order must be filed within 30 days</strong>.</li></ul></li><li><strong>Third Proviso of Rule 23(1):</strong><ul><li><strong>For retrospective cancellations, a special provision allows return filing after revocation to enable application for cancellation revocation</strong>.</li></ul></li></ul><h4><strong>4. Impact of the Clarification</strong></h4><ul><li><strong>Taxpayers get relief</strong> from the <strong>permanent loss of GST registration</strong>.</li><li><strong>Businesses can continue operations without disruptions</strong>.</li><li><strong>The Government ensures compliance while allowing businesses a chance to rectify past mistakes</strong>.<a href="https://cms.plasament.com/storage/nisha/circular-99-18-2019-gst.pdf">circular-99-18-2019-gst</a><br> </li></ul>