CANCELLATION  OF  GST  REGISTRATION

GST registration can be cancelled voluntarily or a GST registration can also be cancelled by a GST officer if the business is non-compliant under GST.

Voluntary GST cancellation

If a person with GST registration wants to cancel their GST registration, a cancellation request can be submitted in Form GST REG-16 to the GST Department. After receiving the application, if the GST Officer is satisfied, he will issue an order to cancel GST registration.

In these cases, GST registration can be cancelled voluntary:

• Discontinuance or closure of a business.
• Transfer of business, amalgamation, merger, de-merger like other 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.

Cancellation by GST department

GST department 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 following cases, GST officer can start the cancellation process.

• If a taxpayer has failed to file GST returns continuously.
• The registered taxpayer has violated one or more sections of the GST Act or its Rules.
• The GST registration is obtained through deception or malicious misrepresentation.
• If improperly claim of the input tax credit taken.

The taxpayer would be given a reasonable opportunity to be heard before their GST registration is cancelled.

The notice would allow the taxpayer to respond to the notice.If the taxpayer responds to the notice and GST officer is satisfied with the response, he may dismiss the case and issue an order. If he is not satisfied, he may issue a form GST REG-19 order cancelling the GST registration.

Procedure for GST registration cancellation:

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

• 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.

2. The GST officer reviews the application and if satisfied then issue an order of cancellation in the Form GST REG-19 within 30 days from the application's date.

Final Registration

Once GST registration is cancelled, the person must file a final GST return on Form GSTR-10 within three months of the cancellation date or the date of the cancellation order, whichever comes first.

Revocation of GST Cancellation

If a registered person's registration has been cancelled suo-moto by the proper officer, an application for revocation of cancellation in form GST REG-21 can be filed within 30 days of cancellation order.

If the GST officer is satisfied, he or she can rescind the cancellation of registration within 30 days of receiving the application by issuing an order in form GST REG-22. Reasons for registration revocation or cancellation must be documented in writing.