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.

Cancellation Of GST Registration (2023 Process)