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CA Final · Indirect Tax Laws · Returns

The registration of Rao Enterprises was cancelled by the proper officer on his own motion for failure to furnish returns, and the order was served on 10 June. Rao wishes to apply for revocation. Which statement is correct under Rule 23 of the CGST Rules?

The application in FORM GST REG-21 is filed within ninety days of service of the cancellation order, extendable on sufficient cause. Because cancellation was for non-filing, the pending returns must first be furnished and the tax, interest, penalty and late fee on them paid.

  1. AThe application can be filed in FORM GST REG-21 within ninety days of service of the order, and only after furnishing the pending returns and paying tax, interest, penalty and late fee due on themCorrect
  2. BThe application can be filed within thirty days without furnishing the pending returns
  3. CThe application can be filed in FORM GSTR-3A within ninety days
  4. DThe application can be filed at any time after cancellation, with no returns required

Explanation

The rule provides that the application in FORM GST REG-21 is made within ninety days from service of the cancellation order, extendable on sufficient cause. Where cancellation was for failure to furnish returns, no application can be filed unless those returns are furnished and tax, interest, penalty and late fee paid. The thirty-day period is for officer disposal or later returns, not for filing the application.

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