Cancelled GST registration can be applied for revocation by 30th June 2023

Businesses whose Goods and Services Tax (GST) registrations were cancelled before December 31 for non-filing of returns can apply for revocation of the cancellation by June 30, after paying due taxes, interest and penalty.

Also now the time limit for making an application for revocation of cancellation of registration is increased from 30 days to 90 days.

The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification on April 1, stating that the assessment proceedings initiated by the tax authorities under the GST Act will be deemed to have been withdrawn if the taxpayer files the pending GST returns GSTR-10 and GSTR-3B.

However, it will be applicable to pending assessment proceedings before February 28 where the returns are not filed. If the taxpayer has already paid the tax or penalty, they will not be entitled to any refund or adjustment due to the deemed withdrawal of assessment proceedings, the notification says.

Also, the finance ministry has capped the late fee at Rs 1,000 for the registered persons who fail to furnish the final return in Form GSTR-10 by the due date, provided they furnish the said returns by June 30, 2023.

GSTR-10 is a final return filed by those taxpayers who have decided to cancel its GST registration, filed within three months of opting for cancellation of registration.

The centre has also notified rationalised late fee for delayed filing of annual return in Form GSTR-9 for FY 2022-23 onwards, for MSME tax payers with turnover up to Rs 20 crore, as decided by the GST council in its last meeting.

Registered businesses with an aggregate turnover of up to Rs 5 crore in the said financial year would be charged a late fee of Rs 50 per day, capped at 0.04% of turnover.

Businesses with annual turnover of between Rs 5 crore to Rs 20 crore would be liable to pay late fee of Rs 100 per day, capping it at 0.04% of his turnover.

The CBIC has also notified a full fee waiver for the delayed filing of the GSTR-4 form with nil tax payable.

GSTR-4 is a GST Return that has to be filed by a composition dealer.