GST Registration Application Rejected or Registration Cancelled

In this article, we will discuss the cancellation of registration under GST. Any GST payer can file an appeal if he is not satisfied with the order passed by the designated officer. An appeal against an order against a registration application must be filed on Form GST APL-01.

Application for GST registration rejected

If the applicant does not provide any answer, is not satisfied with the answer, or the applicant does not answer within the specified time, the processor can cancel the application. On rejection of the application for GST registration, the GST officer will issue the following notice to the taxpayer. As per GST regulations, the authorized officer should communicate the reasons for rejection to the applicant in writing.

If the taxpayer has rectified the deficiencies mentioned in the order to cancel the application for GST registration, a new application for GST registration can be submitted. In case the applicant has queries regarding the reasons for rejection, he/she can also approach the nearest GST Seva Kendra for assistance.

What type of registration refusal order can be appealed?

• Order rejecting the application for registration for all taxpayers
• Order rejecting amendment application for all taxpayers
• Order rejecting cancellation application for all taxpayers
• Order of rejection of revocation of cancellation application
• Order rejecting answer to show cause issued in Form GST CMP-05
• Order for cancellation of registration
• Order to cancel registration as a TDS or TCS
• Order to cancel provisional registration
• Order of refusal of registration as a GST practitioner

Form in which to appeal against the rejection of GST registration

Form GST APL -01 must be filed online and the Appellant is required to submit a physical copy of the supporting documents along with the appeal, duly signed and attested to the office of the Appellate Authority within 7 days of filing the appeal on the GST Portal. After receiving the complete documents, a final confirmation will be issued to him.

The time limit for appeal against refusal of GST registration

Any taxpayer or unregistered person aggrieved by any decision or order passed against him (for Registration, variation or cancellation, etc.) by the competent authority may appeal to the Appellate Authority within three months from the date on which the said decision or is given to such person communicated order.

The appellate authority may waive the delay for a maximum period of 1 month if it is convinced that a sufficient reason prevented the taxpayer from filing an appeal within the above-mentioned period of three months, and will allow it to be submitted within a further period of one month.

Form GST REG-23: Notice of cancellation of the revocation application

The concerned officer will verify the cancellation request submitted in Form GST REG-21.

Let us assume that the officer concerned is not satisfied with the cancellation request. In such a case, it will send a show-cause notice in Form GST REG-23 to the taxpayer stating why it thinks the disallowance application should be disallowed. It asks the taxpayer why his application for disallowance should not be disallowed.

The taxpayer has the option to give reasons for not canceling the GST registration.

An assessee who has received a notice in Form GST REG-23 shall respond in Form GST REG-24 within seven working days from the due date of the notice.

If the officer concerned is satisfied with the request for appeal: In this case, he shall record the reason in writing. It will also issue an order for cancellation of GST registration in GST REG-22 within 30 days of receiving the reply in Form GST REG-21.

Form GST REG-24: Reply to notice of delivery received in Form GST REG-23

If the assessee has received a notice in Form GST REG-23, he should file a reply in Form GST REG-24 within seven working days from the date of service of notice in Form GST REG-23.

Form REG-24 contains below information-

• Reference number and date of notification
• Reference number and date of application
• GSTIN
• Grounds on which the taxpayer requests cancellation
• Documents to attach

The tax officer will verify the response received in Form GST REG-24.

If he is satisfied: He will issue a GST cancellation order in Form GST REG-22 within 30 days from the date of receipt of the reply in Form GST REG-24.

In Case of Dissatisfaction: If the Tax Officer finds that the reasons given are not satisfactory, he may reject the application by issuing an order in Form GST REG-05.

Final words

All entities involved in providing supplies of goods exceeding Rs.40 crores and above Rs. 20 lakhs are required for services in most states to get GST registration. Once submitted for registration on the Common GST Portal, the applicant will receive the GST Registration Certificate within 3-7 working days. However, some applicants may be asked to provide additional documents to the GST department for further clarification. In rare cases, an application for GST registration may also be rejected.