Simplified Guide to Notification No. 3/2023-Central Tax: Revoking GST Registration Cancellation

Simplified Explanation of Notification No. 3/2023-Central Tax

Purpose: This notification outlines the special procedure for revoking the cancellation of GST registration for certain registered persons who missed the standard time limits.

Key Changes:

1. Special Procedure for Revocation:
   • Applicability:
     • This applies to registered persons whose GST registration was cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the Central Goods and Services Tax (CGST) Act, 2017, on or before December 31, 2022.
     • These persons had not applied for revocation of the cancellation within the time limit specified in section 30 of the CGST Act.
   • New Procedure:
     • Application Deadline:
       • Affected persons can apply for revocation of the cancellation of their GST registration up to August 31, 2023.
     • Preconditions for Application:
       • Before applying for revocation, they must:
         1. File all pending GST returns up to the effective date of cancellation.
         2. Pay any taxes, interest, penalties, and late fees due for these returns.
       • No Further Extensions:
         • No further extensions will be granted beyond August 31, 2023, for filing revocation applications.
       • Explanation:
         • If a person’s appeal against the cancellation or the rejection of their revocation application was dismissed due to missing the original time limit specified in section 30, they must follow this special procedure to apply for revocation.

Example:

Scenario:

1. Registration Cancellation:
   • Suppose a business’s GST registration was cancelled under clause (b) of section 29 on June 15, 2022, and they did not apply for revocation within the standard time limit.
2. Special Procedure:
   • Application Window:
     • The business can now apply for revocation of the cancellation until August 31, 2023.
   • Preconditions:
     • Filing Returns:
       • They must file all GST returns up to June 15, 2022.
     • Payment Obligations:
       • They need to pay any outstanding taxes, interest, penalties, and late fees related to these returns.
     • No Further Extensions:
       • After August 31, 2023, no additional time will be granted to apply for revocation.