GST Cancellation

GST registration can be cancelled voluntarily if the business is dormant or does not have the necessary business turnover. Further, a GST registration can also be cancelled by a GST officer if the business is non-compliant under GST. Once GST registration is cancelled, the person or entity is no longer required to file GST returns and is not required to pay or collect GST.

Voluntary GST Cancellation

If a person or entity with GST registration wishes to cancel their GST registration, a cancellation request must be submitted to the GST Department in Form GST REG-16. After reviewing the application, if the GST Officer is satisfied, he or she will issue an order to terminate GST registration in Form GST REG-19.

The following are some of the top reasons for voluntary GST registration cancellation:

• Discontinuance or closure of a business.
• Transfer of business, amalgamation, merger, de-merger, lease, or other pertinent reasons.
• Change in the constitution of business which results in a change of PAN.
• Turnover reduces below the threshold limit of GST registration.
• Death of the sole proprietor.

Voluntarily cancelling a GST registration can save the business owner from unnecessary hassles of filing GST returns each month and payment of penalty or late-filing fee.

Cancellation by GST Officer

An officer can initiate the cancellation of a GST registration under GST if the Officer has justification to cancel the GST registration. The proceedings for GST Cancellation by Officer will begin by issuing a show-cause notice in Form GST REG-17.

A GST officer can start the cancellation process if any of the following events occur.

• If a taxpayer has failed to file GST returns continuously.
• An assessee registered for GST voluntarily but did not start a business within six months.
• The registered taxpayer has broken one or more sections of the GST Act or its Rules.
• The GST registration is obtained through deception or malicious misrepresentation.
• To dodge tax or improperly claim the input tax credit, a taxpayer supplies goods or services without an invoice or produces an invoice without a provision of goods or services.

In case of cancellation by the GST Officer, the Officer would notify the taxpayer whose GST registration is liable to be terminated before cancellation. The taxpayer would then be given a reasonable opportunity to be heard before their GST registration is cancelled.

The notice to the taxpayer from GST Officer would be sent in Form GST REG-17 with specific reasons why the GST registration should be cancelled. The notice would also allow the taxpayer to respond to the notice and have a date and time if a hearing is scheduled.

If the taxpayer responds to the notice and the proper authority is satisfied with the response, he or she may dismiss the case and issue an order in Form GST REG-20. If he is not satisfied, he may issue a Form GST REG-19 order cancelling the GST registration.

Procedure for GST Registration Cancellation

IndiaFilings can help taxpayers cancel their GST registration online. Before beginning the process, the taxpayer must file all overdue GST returns. If there is non-compliance with the GSTR-3B, GSTR-1, or GST annual return, the late return must be filed before the GST cancellation process can begin.

Step 1: GST cancellation application is submitted using Form GST REG-16 on the common GST portal. The following information must be included in the GST cancellation application.

• Contact address, which includes the mobile number and e-mail address.
• Reason for cancellation.
• The desired date of cancellation.
• Particulars of the value and the tax payable on the stock of inputs, the inputs available in semi-finished goods, inputs available in finished goods, and the stock of capital goods/plant and machinery.
• Particulars of the latest GST return are filed by the taxpayer along with the ARN of the particular return.

Step 2: The GST Officer has to review the application and issue an order cancellation in the Form GST REG-19 within 30 days from the application’s date. The cancellation will be effective from a date determined by the Officer, and he will notify the taxable individual.

Consult an IndiaFilings GST Expert if you have a GST registration you want to cancel. We’ll check your GST return filing status, assist you in completing any outstanding GST returns, and file for GST cancellation.

We will also monitor your GST registration cancellation application, reply to any questions, and assist you in completing the process once you have submitted it.

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