Cancellation of GST Registration

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Reasons for Cancellation of GST Registration:

Eligibility for Cancellation of GST Registration:

Procedure for Cancellation of GST Registration:

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Introduction:

Cancellation of Goods and Services Tax (GST) registration may be necessary under certain circumstances, such as when a business ceases operations or undergoes a change in its structure. In this guide, we will provide you with a step-by-step understanding of the cancellation process, including the reasons for cancellation, eligibility criteria, and the procedure to cancel your GST registration.

List of Documents Required

Reason for Closure

Digital Signature Certificate (for Company/LLP)

GST Username and Password

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Form Submission

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Final Quote And Payment

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Reasons for Cancellation of GST Registration:

There are several reasons why you may need to cancel your GST registration:

Closure of Business: If you have ceased or intend to cease your business operations, cancellation of GST registration is required.
Transfer of Business: If your business undergoes a change in ownership, such as through a sale or transfer, amalgamation, merger, de-merger, lease or other pertinent reasons cancellation of GST registration for the old entity and obtaining a new registration for the new entity may be necessary.
Change in Business Structure: If there is a change in the legal structure of your business, such as a partnership converting to a private limited company, cancellation of the old registration and obtaining a new registration which may result in a change of PAN then cancellation may be required.
Death of Sole Proprietor
Taxpayers who are not under the mandatory net of GST: If you are already registered under GST but do not require registration mandatorily due to no inter-state supplies, lower turnover or other such reasons, you may opt to cancel your GST.

Eligibility for Cancellation of GST Registration:

To be eligible for the cancellation of GST registration, certain conditions must be met:

Voluntary Cancellation: You can apply for voluntary cancellation of GST registration if any of the reasons mentioned above apply to your business.

Mandatory Cancellation: In some cases, the GST authorities may initiate the cancellation of your registration if you do not comply with the GST regulations, fail to file returns for a specified period, or do not commence business within the prescribed time.

Procedure for Cancellation of GST Registration:

The cancellation of GST registration involves the following steps:
Log in to the GST portal (www.gst.gov.in) using your credentials.
Go to the Services tab and select the “Cancellation of Registration” option under the “Registration” section.
Fill in the necessary details in the cancellation application form, such as the reason for cancellation and the effective date of cancellation.
Submit the application form along with any required supporting documents, such as proof of closure, transfer, or change in business structure.
After submission, a confirmation message will be displayed, and an acknowledgment reference number (ARN) will be generated.
The GST authorities will verify the application and may seek additional information or documents, if required.
Once the verification process is complete, the GST authorities will issue an order for cancellation.
If the authorities approve the cancellation, your GST registration will be canceled, and a cancellation certificate will be issued.

Points to Note:

It is essential to continue filing all pending GST returns before applying for cancellation to avoid non-compliance issues.

The effective date of cancellation will be determined by the GST authorities based on the information provided in the application and the verification process.

After cancellation, you should surrender all unused or unissued GST invoices and destroy them to prevent their misuse.

Remember to inform your suppliers and customers about the cancellation of your GST registration to avoid any confusion during future transactions.

Conclusion:

Cancellation of GST registration is a significant step when your business ceases operations or undergoes changes in structure. By understanding the reasons, eligibility criteria, and procedure for cancellation, you can ensure a smooth transition and comply with the GST regulations. It is recommended to consult a tax professional or refer to the official GST guidelines for specific guidance related to your circumstances. Properly following the cancellation process will help you avoid non-compliance issues and maintain a clean record under the GST regime.

FAQs

Q1: Why is it important to update GST records?

Updating GST records is crucial for maintaining accurate and up-to-date information as per the requirements of the GST regime. It ensures compliance with the GST regulations, helps in accurate reporting of transactions, and avoids any non-compliance issues.

Q2: What are the types of updates that can be made to GST records?

There are two main types of updates in GST records: core field updates and non-core field updates. Core field updates include changes in legal name, trade name, principal place of business, additional places of business, and amendments to partners, directors, or authorized signatories. Non-core field updates involve changes in contact information, email address, mobile number, bank account details, and the constitution of the business.

Q3: How can I update my GST records?

To update your GST records, log in to the GST portal, go to the Services tab, and select the “Amendment of Registration” option. Fill in the necessary details in the amendment application form, provide the required supporting documents, and submit the application. After verification by the GST authorities, you will receive an order approving the updates.

Q4: What documents are required for updating GST records?

The specific documents required may vary based on the type of update. Generally, you may need supporting documents such as proof of the proposed changes (e.g., name change certificate, address proof) or rectification of errors (e.g., revised invoices, corrected returns). Refer to the GST guidelines or consult a tax professional for the specific documents needed for your update.

Q5: Is there a time limit for updating GST records?

There is no specific time limit for updating GST records. However, it is advisable to update the records as soon as any changes occur or errors are identified to ensure accurate and compliant reporting. Timely updates help maintain transparency and avoid any non-compliance issues.

Q6: Can I make amendments to my GST records more than once?

Yes, you can make multiple amendments to your GST records if required. Whenever there are changes or errors that need to be rectified, you can submit an amendment application with the necessary details and supporting documents.

Q7: Is there any fee for updating GST records?

As of the current GST guidelines, there are no specific fees mentioned for updating GST records. However, it is advisable to refer to the latest notifications or consult the GST authorities to ensure you comply with any applicable fees or charges.

Q8: How long does it take for the GST authorities to process the update request?

The processing time for updating GST records may vary based on the complexity of the update and the workload of the GST authorities. It is recommended to regularly check the status of your application on the GST portal to stay updated on the progress.

Remember, it is important to stay proactive in updating your GST records to maintain compliance with the GST regulations and ensure accurate reporting of your business transactions. If you have specific queries or require assistance, consider consulting a tax professional or referring to the official GST guidelines provided by the government.

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Registration Types

Private Limited Company Incorporation

One Person Company Incorporation

Section 8 Company or NGO Incorporation

Limited Liability partnership Incorporation

Cancellation Of GST Registration (2023 Process)

Cancellation of GST registration means you are no longer a GST-registered entity. You can’t collect, pay, or claim GST or the input tax credit. GST cancellation is not a difficult process but a small error can cost you both money and time.

Wondering about GST cancellation registration, read this guide in its entirety.

Table of Contents

What is suo moto cancellation?

Section 29 of the CGST Act, 2017. The GST Officer cancels GST suo moto or against an application of a GST registered person.

The cancellation of GST is in the following situation:

Business discontinuance or closure
A taxable individual/person is no longer required to pay tax
Transfer of business due to amalgamation, merger, de-merger, sale, leasing, or otherwise
Changes in the business’s constitution result in a change in the PAN
Registered voluntarily but no business started within the time frame specified

The GST Act no longer requires taxable persons to register

What is the process of cancellation of GST?

The cancellation of GST registration is a lengthy but simple process if followed correctly. Follow the steps outlined below:

Step 1: For taxpayers willing to cancel their GST online:

Visit the official Goods and Services Tax website. Then log in with your credentials ie. Username and Password.

Step 2: Go to Services >> Registration option.

Step 3: Click the Registration >> Application for Cancellation of Registration

Step 4: Fill in info such as:

Basic Details, Verification, and Cancellation Details, address, and bank details.

Step 5: After completing the above steps, the cancellation Details tab will be active. Now you need to fill in all required sections of the Basic Data tab.

Step 6: Select one of the options available in the Reasons for Cancellation tab:

Changes in the business’s constitution resulting in a change in PAN;
Ceased to be liable to pay GST;
Closure or discontinuance of business;
Business transfer owing to the merger, amalgamation, leased, sale, de-merger, or otherwise;
Death of Sole Proprietor;
Others.

Step 7: Once you have selected your reason and date to cancel your registration, enter your GSTIN. Click Save and Continue.

Step 8: The verification tab will now be visible. Again, fill out all the details under the Verification tab.

Step 9: Close the application by selecting Submit with EDC or Submit with DSC. The first option sends an OTP to your registered contact address. In the latter case, send it with a digital signature.

Step 10: After reviewing the application, the officer must issue a cancellation order on form GST REG-19 within 30 days from the date of application.

What are the documents required for GST cancellation?

A list of documents required for GST cancellation:

PAN Card of the authorized signatory
Aadhar Card of the authorized signatory
Details of last return
Details of company authority: merger, demerger, or transfer

What are the grounds for cancellation?

The registration is cancelled if the said person:

Does not conduct business from the declared location; or

Issues invoices or bills without the supply of goods or services or both in violation of the provisions of this act, or the rules made thereunder; or

Violates the provisions of section 171 of the act or the rules made thereunder, or

Violates the provision of rule 10A; or

Avails input tax credit in violation of the provisions of section 16 of the act or the rules made thereunder, or

Furnishes the details of outward supplies in form GSTR 1 under section 37 for one or more tax periods which is more than the outwards supplies declared by him in his valid return under section 39 for the said tax periods; or

Violates the provision of rule 86B

Who Cannot cancel GST registration?

The following persons cannot cancel GST registration:

Registered as Tax deductors / Tax collectors
Taxpayers who receive UIN

How do I download the GST cancellation certificate?

Follow these steps to view or download the certificates issued by the GST tax authorities:

1. Go to www.gst.gov.in. The GST Home page appears.

2. Use valid credentials to log in on the GST Portal.

3. Select Services

4. From the drop-down menu click on User Services, then View/Download Certificates from the menu.

What is an application for revocation of Cancelled registration?

A taxpayer whose GST registration is cancelled by the proper authorities can revoke the cancellation by submitting Form GST REG-21. An application must be submitted within 30 days of receipt of notice of cancellation of GST registration.

Cancellation requests are valid only if the competent authority has terminated the registration willingly. So, revocation is ineffective if the taxpayer voluntarily revokes their GST registration.

What is the process of revocation?

Application for revocation of cancellation of GST registration is made in FORM GST REG-21. A registered person who wants to apply for revocation should take the following steps:

Visit the GST Portal

Please enter the correct username and password to access your account.

GST Dashboard select Services, then registration from the services menu, and then an application for revocation of cancelled registration from the registration menu.

Explain the reason for the GST registration cancellation revocation.

Attach any supporting documents, check the verification box, enter the authorized signatory’s name, and fill out the place filed box.

Submit with DSC (Digital Signature Certificate) or with EVC (Electronic Verification Code).

How do you answer a show-cause notice for cancellation of registration under GST?

Form GST REG 18 is filed to answer/reply to the Show Cause Notice issued of cancellation of registration.

What is form REG-19 in GST?

If the concerned Officer is dissatisfied with the taxpayer’s response or the taxpayer fails to submit a response within the time frame specified, the GST officer will issue an order cancelling the taxpayer’s GST registration. Form GST REG-19 is used to pass the cancellation of the GST registration order.

Frequently Asked Questions (FAQ):-

Can I cancel my GST without filing returns?

No, you cannot cancel GST without filing returns. For registration cancellation, the person must file a return known as the final return.

Can you activate Cancelled GST after 90 days?

You can apply for activation of cancellation GST registration under GST laws within 30 days from the date of service for dropping of GST registration.

Can we revoke the Cancelled GST registration after 1 year?

No, the revocation application must be submitted within 30 days of receiving the notice of GST registration cancellation.

Can we apply a fresh GST after cancellation?

Yes, you can apply for a fresh GST after cancellation at the GST Portal.

Can a person have two GST numbers?

On a single PAN card, two GST registrations are possible. An individual may apply for multiple GSTINs in one State/UT if the individual has different business units or establishments in the same State/UT.

Wrapping Up

We hope you got a clear understanding of GST registration cancellation. Follow each step precisely. It would be a wise choice to cancel your GST registration business that is no longer active or has been wound up. Otherwise, you will face charges and penalties.

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