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CA Final · Indirect Tax Laws · Returns

The registration of Delta Foods was cancelled by the proper officer for failure to furnish returns, and the order was served on 10 June. Delta applies for revocation in FORM GST REG-21. Which statement is correct under rule 23?

Delta must apply within ninety days of service of the cancellation order, extendable for sufficient cause. Because cancellation was for non-filing, it cannot apply until it has furnished the pending returns and paid the tax, interest, penalty and late fee due on those returns.

  1. AThe application is generally to be made within ninety days of service of the cancellation order, and Delta must first furnish the pending returns and pay the tax, interest, penalty and late fee due on themCorrect
  2. BThe application is to be made within thirty days, and pending returns may be furnished later
  3. CThe application may be filed without furnishing the pending returns, as the returns are due only after revocation
  4. DThe application is to be made within seven working days of the order

Explanation

Rule 23(1) sets a ninety-day period from service of the order, extendable for sufficient cause by up to a further 180 days. For cancellation due to failure to furnish returns, no revocation application can be filed unless those returns are furnished and the tax, interest, penalty and late fee on them are paid. The thirty-day period applies to the returns due after the revocation order, and seven working days applies to the REG-24 reply.

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