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Businesses can revoke GST registration cancellation by paying taxes and penalty before June 30

The notification clarifies that there will be no further extension of the period for filing the application for revocation of cancellation of registration in such cases.

The finance ministry has capped the late fee at  ₹1,000 for the registered persons who fail to furnish the final return in Form GSTR-10 by the due date, provided they furnish the said returns by June 30, 2023. (Photo: Bloomberg)Premium
The finance ministry has capped the late fee at 1,000 for the registered persons who fail to furnish the final return in Form GSTR-10 by the due date, provided they furnish the said returns by June 30, 2023. (Photo: Bloomberg)

The government has permitted businesses to apply for the revocation of GST registration cancellation by June 30, 2023, after paying the outstanding taxes, interest, and penalty. 

The finance ministry has made amendments to the Central GST Act, specifying that businesses whose registration cancellation was done on or before December 31, 2022, and who have failed to apply for the revocation of cancellation within the given time, can do so by June 30, 2023.

As per the finance ministry notification, businesses must apply for revocation only after filing the pending returns until the effective date of cancellation of registration and paying any tax amounts, interest, penalty, and late fees associated with those returns.

Additionally, the notification clarifies that there will be no further extension of the period for filing the application for revocation of cancellation of registration in such cases.

This would act as relief for taxpayers since as per law, Goods and Services Tax (GST) payers have only 30 days to apply for revocation of registration cancellation order.

The GST council, comprising finance ministers of centre and states, had in its previous meeting in February, recommended that for such GST taxpayers whose registration has been cancelled for non-filing of returns be given amnesty by allowing such persons to file application for revocation within a specified date.

Also, the finance ministry has capped the late fee at 1,000 for the registered persons who fail to furnish the final return in Form GSTR-10 by the due date, provided they furnish the said returns by June 30, 2023.

GSTR-10 is a final return that needs to be filed by taxpayers who have decided to cancel their GST registration. The notification states that as per the law, this return must be filed within three months of opting for cancellation of registration.

Secondly, the government has rationalised the late fee for delayed filing of the annual return in Form GSTR-9 for the financial year 2022-23 onwards for MSME (Micro, Small and Medium Enterprises) taxpayers with a turnover up to 20 crore. The details of the rationalisation are not provided in this news.

Those with an aggregate turnover of up to 5 crore in the said financial year would be charged late fee of 50 per day, subject to a maximum of an amount calculated at 0.04 per cent of his turnover.

Registered persons having an aggregate turnover of between 5 crore to 20 crore in the said financial year would be liable to pay late fee of 100 per day, subject to a maximum of an amount calculated at 0.04 per cent of his turnover.

AMRG & Associates Senior Partner Rajat Mohan said the government has unleashed several amnesty schemes for taxpayers nudging them to comply and file pending GST returns by June 30, 2023.

“Fair amnesty schemes have been provided to composition taxpayers, non-filers of final returns, and taxpayers whose GSTN has been cancelled. These amnesty schemes would bring defaulting taxpayers into the mainstream and boost tax collections in the long run," Mohan said.

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Updated: 02 Apr 2023, 01:13 PM IST
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