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Published on:
February 23, 2023
By
Prerna

Rationalise Revocation of Cancellation of GST Registration under Amnesty

Goods and Services Tax (GST) is a tax on the supply of goods and services, which came into effect from July 1, 2017. GST has replaced a number of indirect taxes that were levied by the central and state governments. GST is a destination-based tax, which means the tax is levied on the final consumption of goods and services and not at every stage of the supply chain. GST registration is mandatory for businesses with an annual turnover of Rs. 40 lakhs or more.

However, due to various reasons, businesses may have their GST registration cancelled by the authorities. In such cases, the business has to apply for revocation of cancellation of GST registration. The revocation can be done under the GST amnesty scheme, which was introduced by the government to provide relief to businesses that have had their registration cancelled.

What is the GST Amnesty Scheme?

The GST amnesty scheme is a scheme introduced by the government to provide relief to businesses that have had their GST registration cancelled. Under the scheme, businesses can apply for revocation of cancellation of GST registration and get their registration reinstated without paying any penalty or late fees. The scheme is aimed at providing relief to small and medium-sized businesses that were facing financial difficulties due to the cancellation of their GST registration.

Rationalisation of Revocation of Cancellation of GST Registration

In order to rationalise the process of revocation of cancellation of GST registration under the amnesty scheme, the government has introduced certain changes. These changes are aimed at simplifying the process and making it easier for businesses to get their registration reinstated. Some of the changes introduced are:

1. The time limit for applying for revocation of cancellation of GST registration has been extended from 30 days to 90 days. This means that businesses now have more time to apply for revocation of cancellation of GST registration.

2. The requirement for submission of a bank guarantee for revocation of cancellation of GST registration has been done away with. This means that businesses no longer have to provide a bank guarantee to get their registration reinstated.

3. The requirement for uploading all the backdated returns has also been done away with. Businesses can now upload only the returns for the period for which they have received notice of cancellation of GST registration.

Benefits of the Amnesty Scheme

The GST amnesty scheme has many benefits for businesses that have had their GST registration cancelled. Some of the benefits are:

1. Businesses can get their registration reinstated without paying any penalty or late fees.

2. Businesses can avoid prosecution for non-compliance with GST laws.

3. Businesses can avoid the hassle of having to apply for a fresh GST registration.

Conclusion

The GST amnesty scheme is a welcome move by the government to provide relief to businesses that have had their GST registration cancelled. The introduction of changes to rationalise the process of revocation of cancellation of GST registration is a step in the right direction. The scheme is expected to provide much-needed relief to small and medium-sized businesses that were facing financial difficulties due to the cancellation of their GST registration.

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Updated on:
March 16, 2024