Query regarding GST and RVAT

CA Divya Mehta (Job) (40 Points)

07 April 2017  
A firm having a late fee penalty (for non filing of returns) under VAT laws for A.Y 2013-2014, filling nil VAT returns from last 5 years.
In December 2016, a 20% waiver scheme was launched but it didn't applied because it had closed his business but not submitted application for closer of business.

Q.1) Is there any chance of getting 100% waiver of late fee for those who are filing nil VAT returns under GST?

Q.2) If this client don't apply for GST registration after provisional registration due dates over. What will be the consequences? Will they cancel the registration automatically?