Steps to Reactivate a Cancelled GST Registration

Introduction

Has your GST registration been cancelled, leaving you uncertain about the next steps?
Whether the cancellation was due to non-filing of returns, business inactivity, or a voluntary decision, the loss of your GST registration can disrupt your operations and compliance status. The good news is — even if your registration has been inactive for years, it’s still possible to restore it.

In this comprehensive guide, we’ll take you through the step-by-step process to reactivate your cancelled GST registration. Follow these simple steps to clear outstanding dues, ensure regulatory compliance, and get your business back on track smoothly.

Need assistance with reactivation? IndiaFilings is here to help. Our experts will guide you through the entire process, making it quick and hassle-free. Start your GST reactivation journey with IndiaFilings today and resolve your compliance issues with confidence

What is GST Registration?

GST registration is the official process through which a business becomes part of India’s Goods and Services Tax (GST) system. It is mandatory for entities that exceed specified turnover limits or engage in inter-state trade.

Upon successful registration, the business is issued a unique 15-digit GST Identification Number (GSTIN) by the GST authorities. This GSTIN is essential for several key business operations:

Filing GST Returns: Registered businesses must file periodic returns reporting their sales, purchases, and tax liabilities.
Claiming Input Tax Credit (ITC): Businesses can offset the GST paid on purchases against their GST liability.
Issuing GST-Compliant Invoices: A valid GSTIN enables businesses to issue invoices that reflect GST, ensuring legal compliance and smooth transactions.

GST registration not only brings businesses into the formal tax system but also enables access to tax credits, builds customer trust, and ensures adherence to government regulations

What is GST Cancellation?

GST cancellation refers to the deactivation or termination of a business’s GST registration. When cancelled, the GSTIN becomes inactive, and the business loses the legal right to collect GST, issue GST-compliant invoices, or claim Input Tax Credit.

Cancellation may be initiated by:

The taxpayer voluntarily, or
The GST authorities, due to non-compliance or other reasons.

Upon cancellation, the taxpayer must:

Stop collecting GST.
File all pending returns and clear outstanding dues.
Comply with closure-related legal requirements to avoid penalties.

Reasons for GST Cancellation

1. Cancellation by the Taxpayer

Closure of Business: The business is permanently shut down or discontinued.
Business Transfer or Merger: The business is sold, merged, or transferred to another entity.
Change in Business Structure: A change in legal structure (e.g., from partnership to company) requires cancellation of the old GSTIN.
Turnover Falls Below Threshold: Businesses with turnover below ₹40 lakh (goods) or ₹20 lakh (services) may opt out.
Voluntary Cancellation: A business may choose to cancel its GST registration even if not legally required.

2. Cancellation by GST Authorities

Non-Filing of Returns: Regular taxpayers who fail to file returns for six consecutive months, or composition taxpayers who miss three filings.
Fraudulent Registration: If registration was obtained through false information or misrepresentation.
Violation of GST Law: Repeated non-compliance or serious breaches of the GST Act.
Unauthorized Activities: Involvement in illegal practices like issuing fake invoices.
Non-Commencement of Business: Failure to begin operations within a stipulated time after registration.
Wrongful ITC Claims: Availing Input Tax Credit without actual receipt of goods or services

Revocation of GST Registration

Revocation of GST registration refers to the process of reversing the cancellation of a Goods and Services Tax (GST) registration. If your GSTIN has been cancelled—either voluntarily or by the tax authorities—you may apply for revocation (only in the case of cancellation by the authorities) to restore your registration and resume business operations legally.

The purpose of revocation is to give businesses a chance to resolve compliance issues and continue operating under the GST framework. By submitting the necessary documents and fulfilling pending obligations, you can reinstate your GSTIN and re-enter the tax system with full compliance.

Can a Voluntarily Cancelled GST Registration Be Reactivated?

No. A GST registration that has been voluntarily cancelled cannot be reactivated. Once cancelled by choice, it is considered final. If the business wishes to resume operations under GST, a fresh GST registration must be obtained.

Consequences of Not Reactivating GST Registration

Failing to reactivate a cancelled GST registration—when required—can lead to several business and legal complications:

Inability to Issue GST-Compliant Invoices:
Without a valid GSTIN, you cannot legally collect GST or issue proper invoices, potentially losing customers who rely on ITC claims.
Loss of Input Tax Credit (ITC):
Businesses without an active GSTIN cannot claim ITC, increasing their tax burden and reducing price competitiveness.
Penalties for Unauthorized GST Collection:
Collecting GST without registration is illegal and can attract severe penalties, including fines equivalent to the amount collected and additional legal action.
Business Disruption and Reputational Damage:
Suppliers and customers may avoid engaging with non-compliant businesses, affecting trust and long-term relationships.

Updated Time Limit for GST Revocation

Effective from October 1, 2023, the time limit to apply for revocation of a cancelled GST registration has been extended to 90 days from the date of the cancellation order (previously 30 days). This gives businesses additional time to file pending returns, pay dues, and complete the application process.

Documents Required to Reactivate GST Registration

When applying for revocation—especially after a long gap like three years—you must prepare the following:

GSTIN and Login Credentials
(Recoverable via the GST portal if forgotten)
PAN of Business or Proprietor
Proof of Business Address (e.g., electricity bill, rent agreement, tax receipt)
Bank Account Details (cancelled cheque, bank statement, or passbook)
Copies of Filed GST Returns (for the inactive period)
Application Form GST REG-21 (mandatory for revocation)

Penalties and Late Fees for Reactivation

Reactivation can involve the following penalties:

Late Filing Fee: ₹50 per day (₹25 CGST + ₹25 SGST), capped at ₹10,000 per return
Interest on Unpaid Tax: 18% per annum
Additional Penalties: May apply in cases of fraud or serious non-compliance

Form GST REG-21: Revocation Application

If your GST registration is cancelled by the GST officer, you must file Form GST REG-21 within 90 days of the cancellation notice. In cases of cancellation due to non-filing of returns, you must first file all pending returns along with applicable interest and penalties before submitting the application.

Step-by-Step: How to Reactivate a Cancelled GST Registration

Step 1: Log in to the GST Portal

Go to gst.gov.in, enter your GSTIN and password. Use “Forgot Password” if needed.

Step 2: Apply for Revocation of Cancellation

Navigate to:
Services > Registration > Application for Revocation of Cancellation
Select your cancelled GSTIN and provide a valid reason for revocation.

Note: This step is only for cancellations done by the GST officer—not for voluntary cancellations.

Step 3: File All Pending GST Returns

Ensure all overdue returns are filed, and any outstanding taxes, interest, or penalties are paid.

Step 4: Upload Supporting Documents

Include:

PAN of business/proprietor
Business address proof
Bank account details
Filed GST return copies
GST REG-21 form

Step 5: Pay Late Fees and Penalties

Pay any applicable late fees and interest charges through the GST portal.

Step 6: Respond to GST Department Queries

Monitor the portal regularly for any queries or notices from the authorities. Timely response is crucial for successful reactivation.

Step 7: Receive Approval

Once your application is verified, you’ll receive confirmation via SMS or email. Your GSTIN will be reinstated and ready for use

Ready to Restore Your Cancelled GST Registration?

Reactivating your cancelled GST registration doesn’t have to be complicated—especially with the right support. At IndiaFilings, we make the process seamless and stress-free. Our GST experts are here to guide you through every step, from clearing pending returns to filing the revocation application.

Don’t let GST issues hold your business back—get back on track with IndiaFilings today.

About the Author

Rohit

Rohit is an experienced legal writer who excels at simplifying complex legal concepts into clear, actionable insights. His content equips entrepreneurs with the knowledge they need to confidently navigate legal requirements and build their businesses with ease.

July 30, 2025