GST registration cancellation is often required by a businessman. Nonetheless, GST registration and GST certificate, etc. are important terms for businessmen to know owing to the fact that they provide a number of benefits to all business ventures.
It rules out all tough tax and legal compliance and helps in easing down doing business. However, there are times when a GST registered individual may wish to cancel his GST registration and may not require the GST certificate anymore.
Here we will discuss why people wish to cancel GST registration and how they can cancel the registration with GST with ease.
What is the Cancellation of GST Registration?
The cancellation of GST registration means the cancelling the registration with the GST, i.e. the registered individual or taxpayer will not be any more a GST registered person and he will not have to collect or pay GST.
Why People Cancel GST Registration?
The following are the reasons why people cancel their registration with GST:
- GST does not apply to an individual
- Individual is shutting the business or profession
- In case an individual was registered under GST inadvertently, he can opt to cancel his registration with GST.
- In case an individual’s annual is less than INR 20 lakhs, he can opt to cancel GST registration.
- If the business is sold to another party, the previous owner is required to cancel his GST registration and the new buyer must get new GST registration online. For the new registration under GST, the applicant is required to login GST portal and register. (Click here to know about the entire process)
Who can cancel the GST Certificate?
As per the GST laws in India, only the following persons can cancel the registration with GST and certificate:
- An individual who has requested the cancellation of the GST certificate on the gst.gov.in portal.
- The legal heir of the registered taxpayer, in case of his death
- Or, the Tax Officer
What are the Consequences of the cancellation of GST Registration?
After the cancellation of the registration with GST , the taxpayer:
- Will not pay the GST anymore
- In case the GST registration is cancelled and the business is still operating, it is an offence and penalty will apply.
When can a Tax Officer cancel the GST Registration?
The GST registration can be cancelled by the GST Tax Officer in the following cases:
If the person is registered under the regular scheme and has failed to file GST return for 6 months in a row.
If the person is registered under composition scheme and has failed to file GST returns for 3 consecutive quarters.
If the registered person has flouted the norms and provisions of the CGST Act 2017.
If the individual has registered with a business name under GST but has not traded in the six months since the date of registration.
- In case the individual has registered by misleading means.
How to cancel Registration under GST?
Now let’s understand how you can cancel the registration with GST:
Login on the GST portal, here, with the username and password.
After login, click on services and then choose the option- Application of cancellation of registration from its sub-menu user services.
On the page for cancellation, choose the appropriate reason for the cancellation of the GST registration.
In the next step, you will be asked if you were issued a Tax Invoice during the duration of the month. In case of the tax invoice was issued, FORM GST REG-16 is compulsory to fill.
- Then enter all the details—authorized signatory and the place.
- The last step, click on the submit button with
- Submit with EVC is the business was a proprietorship or partnership firm
- Submit with DSC if LLPS or Company.
Your GST registration will be cancelled within a time period of a month.
Frequently Asked Questions
Here is the procedure for GST registration cancellation:
1) A registered person can submit an application for revocation of cancellation, in form GST REG-21, if his registration has been cancelled by the proper officer.
2) He must submit it within 30 days from the date of service of the cancellation order at the Common Portal
The taxable person wants to cancel the GST registration- In this case, the taxable person will send the request for cancellation of registration in Form GST REG-16. If the proper officer is satisfied with it, then he can issue an order in Form GST REG-19 to cancel GST registration.
Central Tax Authority will cancel the GSTIN issued to the taxpayer by the Cancellation of GST Registration. A registered person who is having a GST registration can surrender GSTIN number by filing a return in the form of GSTR-10.
The registration granted under GST can be cancelled for specified reasons. The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of death of registered person, the legal heirs can apply for cancellation.
Track GST Registration Application Status after Login
Step 1: Login to the GST portal and go to Services > Track Application Status option.
Step 2: Select the option from drop-down against the Module as Registration.
Step 3: You may choose to know the application status from the ARN or SRN or submission date as well.
A functionality has now been implemented for the taxpayer, to withdraw an already filed refund application, by filing Form GST RFD-01W (until the Refund Processing Officer issues an acknowledgment in Form GST RFD-02 or a deficiency memo in Form GST RFD- 03).
A taxpayer whose registration is cancelled by the proper officer can apply for reversal of such cancellation of GST registration by applying Form GST REG-21. This application should be filed within 30 days of receiving the notice for the cancellation of GST registration.
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