The process initiated by the taxpayers for the said goods and services can be neutralized in India which can be done by the submission of GST REG-21. The said form is to be filed in compliance with the concerned authorities and with the required documents and the whole process for reactivate or neutralise GST enrollment might take about six weeks to complete. The basic objective stands to aid the business to further reactivate, register and resume their business.
Steps Involved to Reactivate or Neutralise GST Enrollment Online
Follow the steps given below in order to reactivate GST registration in India:
- Login with the credentials (https://www.gst.gov.in/).
- Search for application for revocation (Application for revocation of cancellation).
- Fill in the necessary details for the form of revocation.
- Further, upload the required documents.
- The next step involves the submission of the application.
- The application is to be reviewed by the concerned tax officer.
- Upon reviewing the application it will either be approved or rejected.
What are the Reasons Involving to Neutralise GST?
Given below is the list of reasons due to which you should reactivate or neutralize GST enrollment your GST are:
To Offset the Input Tax Credit (ITC)
This involves the process that revolves around the process for further utilizing any Input Tax Credits and further aids to neutralize the GST liability. The business involved can further claim several credits towards the GST which is paid on the amount for purchase which stands against the amount of GST that is only collected by the sales and hence reduces the net amount of GST which stands payable towards the government.
To Rectify the GST Mismatch
This process refers to further rectifying the mismatches that are made upon the returns of GST which are required to be corrected to neutralize any inconsistencies towards the said errors.
Cancellation of GST Registration in India
This further requires the process that involves further nullifying any active process of GST registration. The cancellation of GST is only made when a business ceases to operate or further does not qualify to be eligible for GST.
Reversal of GST Credit
The actual process to reactivate or neutralise GST enrollment would certainly involve the GST credits which are claimed inappropriately and the said business is required to revert the credit to further neutralize the said impact.
Who is not Eligible to Neutralize GST in India?
If you fall under any of the category given below then you are not eligible to reactivate or neutralise GST enrollment in India:
Voluntary Cancellation
Anybody who has applied for the voluntary application for GST is further not eligible for the process to be revoked. It includes the businesses that have ceased to operate or the turnover of that particular business stays under the threshold limit which is required for the mandatory registration of GST.
Cancellation Due to Fraudulent Activities
The taxpayers who cancel their registration for GST due to any fraudulent activities or any misappropriation or suppression of the facts are not eligible for the process of revocation. Thus these types of cancellations would certainly require to only be done after the completion of the investigation process by the concerned tax authorities.
Not in Compliance with the Required Conditions
Any taxpayers who are not able to comply with the specific conditions that are required to be followed by the GST authorities including the non-filing of GST returns and non-payment of taxes and if such repeated action is made then they are not allowed for further revocation and their registration can also be canceled by the concerned authorities.
Time Limit Exceeded
The revocation application for cancellation should be filed within a specified period of 30 days which is from the date of the cancellation order, and if not applied within the time then the taxpayer is not allowed for revocation unless a proper extension period is granted by the concerned officer.
Specific Categories of Taxpayers
The taxpayers who belong to the composition scheme and have voluntarily opted for GST will not be further able to revoke the registration if it was canceled on their own request. Hence one must take care of this.
What are the Advantages of Neutralising GST in India?
Given below are some advantages of GST neutralization in India:
Compliance and the Aspect of Risk Management
By the reactivation, one can further avoid penalties and fines which were made during the non-compliance of GST which includes the non-payment of fines and the dues. The overall management of GST compliance stands difficult and time-consuming as neutralizing GST can further reduce the burden of work and ease working operations.
Cost Saving
Registration for GST helps cut the costs that include the fees, accounting services and other compliance costs and this process of neutralizing GST can further reactivate and save these expenses.
Efficiency in Operation
The process related to GST will stand as a less obligated step including less operational workload but leading to efficient management of business. It increases the focus on the business which further leads to enhanced productivity and growth of the business.
Overall Financial Management
The process for neutralizing GST has certain impacts on the aspect of cash flow as it is paid only upon the required services rather than on non-taxable activities. So fewer transactions of GST can further simplify the accounts for business and help to manage the track for business.
What are the Disadvantages of Neutralising GST in India?
Given below are some of the disadvantages of GST reactivation in India:
Administrative Burden
The process for the reactivation will again attract certain paperwork which can stand as time-consuming and more effort, the business will have to again provide the paperwork to further prove their eligibility to be in compliance and share the administrative load.
Compliance Cost
To hire professionals including accountants or consultants who will further assist in the process of reactivation which will again lead to additional costs. If the deactivation was made in non-compliance then would significantly lead to penalties and further interest in charge which will need to be paid for the concerned period.
Financial Burden
The businesses might have to claim for ITC during the process of deactivation which will further attract cash flow and financial constraints. The tax liability is needed to be cleared which might be a burden on business.
Reputation at Risk
Any changes to the registration of GST will certainly affect the reputation of the business including the clients and business operations as it affects the business owners as being an unreliable organization.
Legal Implications
The process would attract legal implications that are made from the period of deactivation and affect any contracts that were made during the process leading it to be more time-consuming and require further legal assistance.
Conclusion
The process of reactivate or neutralize GST enrollment online signifies the business being again in operation and successfully being registered again as of which it was further authorized to collect and remit the GST again after being a registered business under GST. The registration is necessary as it will be regulated under the GST regulations and helps ease of payment for taxes and promote business.
FAQs
- What do you understand to reactivate or neutralize GST enrollment online?
The basic objective stands to aid the business to further reactivate, register and resume their business. The process initiated by the taxpayers for the said goods and services can be neutralized in India which can be done by the submission of GST REG-21.
- What are the reasons to reactivate or neutralize GST enrollment ?
The reason stands to offset the Input Tax Credit (ITC), to further rectify the GST mismatch, to further make the GST registration and to reverse the GST credit.
- What are the benefits of neutralizing GST?
It helps in further compliance and the aspect of risk management, more cost saving, attracts efficiency in operation and promotes overall financial management
- How to reactivate GST?
First, log in with the credentials (https://www.gst.gov.in/), search for an application for revocation (Application for revocation of cancellation), fill in the necessary details for the form of revocation, further, upload the required documents, the next step involves the submission of the application, the application is to be reviewed by the concerned tax officer and upon reviewing of application it will either be approved or rejected.
- When will the GST become inactive?
If the said composition-taxable person further fails to file an annual return for three months which stands as beyond the due date of 30th April of the following year it will get his registration canceled.
