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CA Final · Indirect Tax Laws · Returns

The registration of Meena Agro Pvt Ltd was cancelled by the proper officer on his own motion for failure to furnish returns. The order of cancellation was served on 10 June. The company applies for revocation on 20 July. Which statement is correct under Rule 23 of the CGST Rules, 2017?

The application is within the ninety-day period, but it can be filed only after the defaulted returns are furnished and the tax, interest, penalty and late fee on them are paid. Rule 23 bars an application for revocation otherwise when cancellation was for failure to furnish returns.

  1. AThe application is within time, but it can be filed only after the returns are furnished and tax, interest, penalty and late fee in respect of those returns are paidCorrect
  2. BThe application is time-barred as it must be filed within thirty days
  3. CThe application can be filed without furnishing returns, which can be filed within ninety days after revocation
  4. DThe application must be filed in FORM GST REG-23 to the Commissioner

Explanation

The application in FORM GST REG-21 must be made within ninety days of service of the order, and 20 July is within that. Where cancellation was for non-furnishing of returns, no application can be filed unless those returns are furnished and tax, interest, penalty and late fee in terms of them are paid. Returns for the period after cancellation are due within thirty days of the revocation order, not these.

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