If you have a GST-registered business, you have probably heard of the scenario of having your GST registration neutralized. This situation can occur at times, and in case it does, there is a process to reactivate your GST cancellation. This guide will take you through the basics of the GST cancellation reactivation process and its various steps. Let’s begin:
What is GST Cancellation?
Before moving on to the GST cancellation reactivation process, it is vital to understand the basics of GST tax returns. GST, or the Goods and Services Tax, is a tax that is levied on the supply of goods and services in India. It replaces various indirect taxes and is intended to simplify the tax system in India. However, in certain circumstances, your GST registration can be cancelled by the government. This is known as GST cancellation.
Why Does GST Cancellation Occur?
While going through the cancellation of GST registration is certainly a traumatic situation, it is wise first to understand the reasons behind it before you learn how to reactivate GST registration. There are several reasons why your GST registration may be cancelled by the government. Some of the most common reasons include:
- Failure to GST tax returns on time
- Not keeping proper records
- Providing false information
- Engaging in fraudulent activities
- Non-compliance with the GST laws and regulations
Is It Permanent?
Cancellation of GST registration is not permanent, and it's possible to reactivate it. However, the process can be time-consuming and requires you to meet certain requirements.
Steps to Reactivate GST Cancellation
Now that you’re through with the basics of why and how the GST registration can be cancelled let’s go over the steps needed to reactivate GST registration.
- Check the Reason for Cancellation
The first step to reactivating your cancelled GST registration is to understand the reason for its cancellation. The GST authorities may cancel your GST registration due to non-compliance with the GST laws or failure to file GST tax returns. You can check the reason for cancellation by logging into the GST portal and accessing your account.
- Address the Reasons for Cancellation
Once you are aware of the reason for the cancellation of GST registration, it's time to address it. You need to ensure that you are compliant with the GST laws and that all the necessary documents are in place. If the reason for cancellation is non-filing of GST returns, then you need to ensure that all the pending returns are filed.
- File an Application for Reactivation
Once you have addressed the reasons for cancellation, the next step is to file an application to reactivate GST registration. You can do this by logging into the GST portal and accessing your account. From there, you can select the option to file an application for reactivation.
- Submit Supporting Documents
Along with the application for reactivation, you need to submit the required supporting documents. These may include proof of compliance with the GST laws, proof of filing of pending GST returns, and any other documents required by the GST authorities.
- Wait for Approval
Once you have submitted the application with the required documents during the GST cancellation reactivation process, you need to wait for approval from the GST authorities. This process may take a few days or a few weeks, depending on the workload of the GST authorities.
- Make Payment of Outstanding Amounts
In case there are any outstanding amounts, you need to make the payment before the GST registration can be reactivated. This may include any late fees, penalty charges, or other amounts owed to the GST authorities.
- Reactivation of GST Registration
Once the GST authorities have approved your application for reactivation and you have made the payment of any outstanding amounts, your GST registration will be reactivated. You will receive a confirmation from the GST authorities, and you can start filing your GST returns again.
Final Thoughts
If you’re in need of starting the GST cancellation reactivate process, we recommend taking the assistance of an expert. This would ensure that the reactivation request is approved without any hiccups in the process and that your business can resume as soon as possible. Feel free to get in touch with our legal and registration experts at Lawgical India for world-class assistance in the process of reactivating GST registration.
