We can activate cancelled GST registration number by submitting the application for revocation of cancelled GST registration. This application should be submitted within 90 days from the date of order for GST cancellation. The GST reactivation application will be approved if the department founds that the application is complete and all the defaults are rectified.
Application for re-activating cancelled GST registration number should be filed within 90 days from the date of order of cancellation of GST registration.
All the pending GSTR-3B, GSTR-1, annual returns and other periodical returns should be filed before submitting the application for re activation of GST registration number.
The application should be accompanied with the valid reason to activate the GST registration.
In case where the GST registration is cancelled for the reason of issues in the principle place of business, then all the requirements relating to principle place of business should be rectified.
Where GST registration is cancelled for filing nil returns continuously and not commencing the business then the dealer should provide necessary proof and valid reasons that the business would commence after the approval of the GST reactivation application.
Incase the GST registration is cancelled stating the reasons as “obtained by fraudulent process” then the GST application will be approved only if it is proved that the application is genuine to the satisfaction of the department.
After the approval of the GST activation application, pending returns from the date of cancellation and up to current period should be filed within the period of 30 days.
Where it is found that the department had rejected the application without any valid reasons or justifications the dealer can file an appeal with in 90 days from the date of rejection order for GST number activation.
Process and procedure to get new GST registration number is comparatively easy than to activate the cancelled GST registration number, however activating the cancelled GST registration number have numerous benefits in the following circumstances.
Input tax credit can be claimed only if we are having active GST registration number, availing input tax credit reduces cost of goods purchased thus increasing profitability.
For existing business your GST number would have been circulated to all your vendors and customers, the change of GST number would have impact on your reputation and gives an poor impression about GST compliance. Therefore activating the existing GST number is always beneficial for existing business which had circulated the GST number to the third parties.
Carry forward of available GST input tax credit is possible only in same GST number, even if fresh GST is applied using the same PAN number carry forwad benefit will not be available.
Date of the GST registration number is significant trust factor for getting credit from the suppliers, supplier of materials always prefers the business who were in the industry for the long run.
Financial institutions prefers funding to entities which have GST registration for long period, therefore it also improves the financial credibility.
Smooth execution of pending sales contracts, sales orders, purchase order, purchase contracts, for which existing GST number is provided.
