The Delhi Government notified the Delhi Goods and Services Tax (Removal of Difficulties) Order, 2020 so as to remove the difficulties of the taxpayers.
The Delhi Government sought to clarify that for the purpose of calculating the period of 30 days for filing application for revocation of cancellation of registration for those registered persons who were served notice and where cancellation order was passed up to 12th June, 2020, the later of the “date of service of the said cancellation order; or 31stday of August, 2020” dates shall be considered.
As per section 29(2) of the Delhi Goods and Services Tax Act, 2017, a person registered under GST may apply for cancellation of the registration under various circumstances namely if a registered person has contravened provisions of the Act; a taxpayer under section 10 has not furnished returns for three consecutive tax periods; any registered person who has not furnished returns for a continuous period of 6 months; any person who has taken voluntary registration has not commenced business within 6 months from the date of registration; and registration has been obtained by means of fraud,willful misstatement or suppression of facts.
The Delhi Goods and Services Tax Act, 2017 provides for an opportunity to the taxpayer to submit an application for revocation of cancellation of the registration within 30 days from the date of service of the cancellation order.
However, due to the newness of the Act the taxpayers could not apply for revocation of cancellation within 30 days from the date of service of the cancellation order, as a result whereof certain difficulties have arisen in giving effects to the provisions of sub-section (1) of section 30 of the said Act.
Therefore, the government with the objective to curb the difficulties decided that where cancellation order was passed up to 12th June, 2020 the later of the “date of service of the said cancellation order; or 31st day of August, 2020” dates shall be considered for the purpose of revocation of the cancellation.
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