A Simple Guide To Resolve Your GST Registration Rejected Application

GST is an indirect tax that was formed to abolish several other indirect taxes in India, to create a single taxation regime for ease of collection and to increase the efficiency of the process. It is mandatory for businesses with an annual turnover of Rs. 40 Lakh and above. In the North East and Hill states, registration is compulsory for companies earning more than Rs. 10 Lakh yearly revenue.

In this blog we are going to consider cases, wherein after submission of a GST registration application, additional documents are requested or the GST Registration Application Rejected.

Table of Contents

1. Overview
2. How Are You Benefitted By Registering A Business Under GST?
3. Are you aware of the fact that there is a penalty for not registering under GST?>
4. Errors In Your GST Registration?
5. What happens if your GST registration is rejected?
6. How Do You Know The Reason For Your GST Registration Rejection?
7. Why Did Your GST Registration Application Get Rejected?
8. Is Your GST Registration Rejected? Worry Not! Here’s How You Can Download GST Registration Rejection Order
9. Cancellation Of Registration Under GST:
10. Revocation of Cancellation under GST
11. Why Revocation Of Cancelled GST Registration Is Necessary?
12. Steps To Re-Registration Under GST

But before that let’s discuss GST registration, its benefits, penalties associated, correct errors in GST registration, reregistration of GST.

How Are You Benefitted By Registering A Business Under GST?

• GST eliminates the cascading effect of tax

• Higher threshold for registration

• Composition scheme for small businesses

• The simple and easy online procedure

• The number of compliances is lesser

• Defined treatment for E-commerce operators

• Improved efficiency of logistics

• The unorganized sector is regulated under GST

Click here to read about GST registration process

You can read more about GST registration filing dates and the Authorised Representative Under GST

Are you aware of the fact that there is a penalty for not registering under GST?

According to the section 122 of CGST Act, if you are a taxable person and you fail to register under GST, then you are legally bound as per the GST Act and you need to pay the following amount of penalty:

10,000 INR or amount of tax evaded whichever is higher.

For example:

Case 1: If you fail to obtain GST registration and the total tax evaded amounts to 30,000 INR, the penalty applicable is 30,000 INR

Case 2: If you fail to obtain GST registration and the total tax evaded amounts to 8,000 INR, the penalty applicable is 10,000 INR

Errors In Your GST Registration?

If you have any mistakes or errors in GST registration, you can rectify it in the application for registration either at the time of registration or even afterwards. You must submit FORM GST REG-14 along with documents. The GST officer will verify and approve within 15 days in FORM GST REG-15.

But if there is any mistake in PAN, you will have to file for fresh registration in FORM GST REG-01. This is because the GSTIN number is based on the PAN. 

You can reach out to us for any further assistance related to the corrections in your GST Registration

Now, what happens if your GST registration is rejected?

After submitting for the registration, you will receive the GST registration certificate within 10 working days. However, some applicants may require to provide additional documents to the GST department for further clarifications. In rare cases, the application for GST registration could also be denied. 

How Do You Know The Reason For Your GST Registration Rejection?

After submission of your GST registration application along with the list of documents required, you will be provided with an acknowledgement.

You can use the ARN number (Acknowledgement Reference Number) as mentioned in the GST registration application acknowledgement to track the status of your application. 

It normally takes about 7 working days for the provisional GSTIN to be provided and an additional 2 days for providing final GSTIN with GST registration certificate. If the processing officer approves the application, you will receive the GST registration certificate as a soft-copy. 

Why Did Your GST Registration Application Get Rejected?

Your GST application can get rejected only if required data is not filled accurately, inadequate proof of identity or address of premises and if your PAN card number is not matching.

If the GST registration application does not contain all the necessary documents or information, then the GST officer processing the application would issue a notice seeking additional information or clarification or documents.

In such a scenario, you can submit the required information or documents as cited by the GST Officer on the common portal before the date mentioned in the notice. The authorized officer will approve the application once satisfied with the information provided by you for the GST certificate. However, the authorized officer has the power to reject the application for the GST certificate, if you failed to provide all the required documents or if you fail to submit it on time.

The GST Officer cannot order for a personal hearing for issuing a new GST registration certificate. The GST officer shall communicate any information regarding the process of the application or any concerns regarding the registration only through the GST forms.

If you fail to provide any reply, or if the authorized officer is not satisfied with the reply or if you fail to reply well within the time, the processing officer can reject the application.

If the officer is not satisfied with the reply, he can reject the application and pass an order in FORM GST REG -05.

On rejection of a GST registration application, the GST Officer would issue a notice to the applicant. As per the GST regulations, the authorized officer should convey to you in writing along with the reasons for rejection.

You can download the GST registration rejection form

Is Your GST Registration Rejected? Worry Not! Here’s How You Can Download GST Registration Rejection Order

If you have applied for GST registration and your application got rejected, you will get a chance to reply to the rejection letter.

However, if you wish to apply for a new application then you would have to wait for a final rejection which will take around 10 days.

Once the application is fully rejected you can apply again.

You can access the GST Portal using your login credentials by clicking here

Click Services > Registration > Application for Revocation of Cancelled Registration option

Cancellation Of Registration Under GST:

Your GST registration can be cancelled for the below reasons :

1. Cancellation by Taxpayer

A taxpayer opts in for cancellation of registration on the grounds of:

• Liability: GST registration is mandatory for every business exceeding the threshold limit. However, if the annual turnover of the business drops below the given threshold limit, the registered person can opt-in for GST cancellation.

• Merger: The taxpayer has transferred or merged the business with another organization or vice versa). In this case, the transferee (or the new company from amalgamation/ demerger) has to get registration under GST.

• Dissolution: The taxpayer has discontinued the business.

• Constitution: There is a change in the constitution of the business

• For cancellation, the taxpayer will have to submit an E-application in FORM GST REG-29 through the GST Portal. An authorised officer, upon proper enquiry, shall provide cancellation of the registration.

(Login to the GST Portal with your user-ID and password.

Then navigate to the Services > Registration > Application for Cancellation of Registration option.)

2. Cancellation by Legal Heirs

If a registered person is deceased, the family or the legal heir of the taxpayer can apply for cancellation of GST registration in FORM GST REG 16.

The legal heirs are required to provide the following details in FORM GST REG 16

• Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation of registration is applied;

• Liability thereon;

• Details of the payment.

3. Cancellation by Authorised Officer

An Authorised officer can cancel GST registration of a taxpayer if,

• The registered person does not conduct business from the place as declared during registration.

• The registered person issues invoices without any supply of Goods and/or Services.

• The registered person violates anti-profiteering provisions

To cancel the registration of a given business, the authorised officer is required to follow the below-given process

• Authorised notifies the concerned person by sending show cause notice in FORM GST REG -17

• For any disagreement, the registered person is required to reply in FORM GST REG -18 within 7 days of issuance of the notice.

• If the authorised officer finds the reply to be satisfactory, he can drop the proceedings and pass an order in FORM GST REG –20.

However, you fail to justify why your registration should not be cancelled, the authorized officer will issue an order in FORM GST REG-19. The order will be sent within 30 days from the date of reply to the show cause

Revocation of Cancellation under GST

In case of cancellation imposed by an authorized officer, you can apply for revocation of cancellation within 30 days from the date of the cancellation order.

The process you need to be aware of:

• You can submit an application for revocation of cancellation through FORM GST REG-21 on the GST portal. 

• If the authorised officer is satisfied with the reason you provide, the registered office is required to,

1. 1. Record the reasons for the revocation of cancellation of registration in writing.

2. 2. Reverse the cancellation of registration.

3. 3. Pass an order of revocation in FORM GST REG-22.

• However, if the reason is not found satisfactory to the authorised officer, he can reject the application for revocation. The officer is required to order in FORM GST REG-05 and communicate the same.

• Before rejecting, the proper officer must issue a show-cause notice in FORM GST REG–23 for you to show why the application should not be rejected. You must reply in FORM GST REG-24 within 7 working days from the date of the service of the notice.

• The proper officer is required to take a decision within 30 days from the date of receipt of clarification in FORM GST REG-24.

Why Revocation Of Cancelled GST Registration Is Necessary:

If you don’t apply for revocation of cancellation, it shall be deemed to be a ‘deficiency’ within the meaning of rule 9 (2) of the Central Goods and Service Tax Rules, 2017 and can be considered as a ground for rejection of the application for fresh registration.

On the other hand, if you continue to trade goods and supplies with GST registration, it shall be considered as an offence under GST law and you shall be liable to heavy penalties.

Learn more about GST Re-Registration Process

In order to avoid application of fresh registration of businesses, who have had their registration cancelled by an officer, on account of non-compliance of the statutory provisions, CBIC (Central Board of Indirect Taxes and Customs)(released Vide circular no. 95/14/2019-GST dated March 28th, 2019, wherein the officials have clarified the consequence the taxpayer has to face in case of non-revocation of cancelled registration.

In cases where a registered taxpayer applies for another registration within the same state, the authorised officer is required to analyse whether existing registration continues or is being cancelled;

In case of cancelled registration, the further analysis shall commence on whether the registration is cancelled on account of violation of provisions of section 29 (2) (b) [composition dealer has not furnished returns for 3 consecutive tax period] or section 29 (2) (c) [registered taxpayer has not furnished returns for a continuous period of 6 months]. 

In case you need any further assistance regarding your GST application rejection, please feel free to get in touch with us. Our team of GST Consultants in Bangalore will do the required to ensure your GST application processes are further.

FAQs

1. GST application rejected by tax officer what to do?

If the tax officer rejects your GST application, you will get a chance to reply to the rejection letter, but if you wish to apply for a new application, you would have to wait for the final rejection, which might take around ten days.

2. How to check GST registration rejection reasons?

If the tax officer rejects your GST registration application, he will issue a notice stating the reason for rejection, and you will get a chance to respond to the same.

3. How to apply for GST registration after rejection?

Once your GST registration is rejected, you will get a notice, and you can respond. If you wish to apply for new registration, you must wait for ten days and then apply.

4. Can we apply for GST registration after rejection?

Yes, you can apply for GST registration after rejection. You can either respond to the notice and submit the required documents accordingly or apply for a new GST registration

5. How to download GST registration rejection order?

In order to download the GST registration rejection order, using your login credentials, you can access the GST portal.
You can follow the procedure below to download the GST registration rejection order:
- Click Services 
- Registration 
- Application for Revocation of Cancelled Registration option

6. How to check order reference numbers in GST?

You can use the Acknowledgement Reference Number (ARN Number) mentioned in your GST registration application acknowledgement to track the status of your application. 

7. How many times is the nil GST return acceptable?

There is no provision for limitation of filing a NIL GST Registration. It depends on the business activity in a month by the taxpayer. But filing a return can't be overlooked.

8. Can I activate a Cancelled GST registration after 90 days?

If registration is cancelled and the limit of 90 days has expired, you can apply for revocation of registration. You can prepare the appeal and fill out the application online. You can explain your circumstances to Commissioner. The decision will be taken by Commissioner based on circumstances.

9. Who approves GST registration?

When an individual provides proper information/documents with clarification, the proper officer grants the registration to the individual within seven working days from the date of the receipt of such clarification or information or documents.

10. What if GST returns is not filed for 6 months?

The GST officer might cancel your GST registration if you fail to file your GST for 6 continuous months.

Read More

1. Filing Of NIL GSTR 3B Through SMS

2. Scope Of Principal-Agent Relationship Under GST

3. Implication Of GST On Transfer Of Business - At Glance