Rule 23 of CGST Rules 2017: Revocation of Cancellation of Registration

Provisions under Rule 23 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Revocation of Cancellation of Registration”, are as under:

CGST Rule 23: Revocation of Cancellation of Registration (Chapter-III: Registration Rules)

(1) A registered person, whose registration is cancelled by the proper officer on his own motion, subject to the provisions of rule 10B, may submit an application for revocation of cancellation of registration, in FORM GST REG 21, to such proper officer, within a period of thirty days from the date of the service of the order of cancellation of registration or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30 within a period of ninety days from the date of the service of the order of cancellation of registration at the common portal, either directly or through a Facilitation Centre notified by the Commissioner: [Refer Note 2, 3 & 4]

Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended by the Commissioner or an officer authorised by him in this behalf, not below the rank of Additional Commissioner or Joint Commissioner, as the case may be, for a further period not exceeding one hundred and eighty days: [Note 5]

Provided further that no application for revocation shall be filed, if the registration has been cancelled for the failure of the registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns. [Note 5]

Provided also that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration: [Refer Note 1 & 5]

Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration. [Refer Note 1]

(2) (a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG 22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.

(b) The proper officer may, for reasons to be recorded in writing, under circumstances other than those specified in clause (a), by an order in FORM GST REG 05, reject the application for revocation of cancellation of registration and communicate the same to the applicant.

(3) The proper officer shall, before passing the order referred to in clause (b) of sub rule (2), issue a notice in FORM GST REG 23 requiring the applicant to show cause as to why the application submitted for revocation under sub-rule (1) should not be rejected and the applicant shall furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG 24.

(4) Upon receipt of the information or clarification in FORM GST REG 24, the proper officer shall proceed to dispose of the application in the manner specified in sub-rule (2) within a period of thirty days from the date of the receipt of such information or clarification from the applicant.

Amendments History:

1. Second and Third proviso to sub-rule (1) inserted vide Central Tax Notification 20/2019 dt. 23/04/2019.

2. The text ‘or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30’ inserted vide Central Tax Notification 15/2021 dt. 18/05/2021.

3. In sub-rule (1), the text “, subject to the provisions of rule 10B,” inserted after the text “on his own motion, may”, vide the Central Tax Notification 35/2021 dt. 24/09/2021, pending notification on commencement date. Subsequently, vide Central Tax Notification 38/2021, CBIC notifies 01/01/2022 as the commencement date in respect of amendment in sub-rule (1), which was made vide sub-rule (3) of the CGST (8th Amendment) Rules, 2021 (Central Tax Notification 35/2021).

4. In sub-rule (1), the text “within a period of …. sub-section (1) of section 30” substituted with the text “within a period of ninety days …. cancellation of registration”, vide Central Tax Notification 38/2023 dated 04/08/2023, effective October 1, 2023.

5. New proviso inserted as first proviso and existing provisos renumbered/repositioned vide Central Tax Notification 38/2023 dated 04/08/2023, effective October 1, 2023.

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.