GST Registration Cancellation

CANCELLATION OF GST REGISTRATION

How can you cancel your GST registration?

GST registration can be revoked by the registered person, the GST officer, or the registered person's legal heirs in the event of the registered person's death under GST. GST registration cancellation implies that the individual is no longer registered under GST and is no longer required to pay or collect GST.

GST registration can be revoked either by a GST official or voluntarily by the individual who is registered under GST. If the taxpayer quits his GST registration, he will no longer be required to pay GST.

If an individual continues to do business after relinquishing their GST registration, they will be in violation of GST, and severe penalties will apply. There would be no need to file any GST returns.

Who has the authority to cancel the GST registration?

1. An officer may cancel a GST registration if: The registered person under GST does not conduct business from the specified place of business or from any other location.
2. Invoices or bills are issued without the delivery of goods or services, in violation of the GST Act or GST regulations.
3. If a person with a GST registration has not filed a GST return in the previous six months, Before cancelling registration, the Officer would send a notification to the taxpayer whose GST registration is about to be terminated, requesting them to demonstrate reason within seven working days after receiving the notice.

The registered individual must respond to the show cause notification within the time frame specified, or the GST registration will be terminated.

The registered person's voluntary cancellation

The registered person's voluntary cancellation Under Section 29 of the CGST Act, a person registered under GST may terminate his or her GST registration under the following cases:

1. A company's discontinuance or closure
2. Business transfer, amalgamation, merger, de-merger, leasing, or other relevant causes
3. A change in the business's constitution leads in a change in the PAN.
4. Turnover falls below the GST registration threshold.
5.  
6. The only proprietor died.
7. Any additional cause that must be demonstrated in the application.

How can I request for a GST refund?

The taxpayer must file all GST returns before asking for GST registration cancellation. If there is a non-compliance with the GSTR-3B return, GSTR-1, or GST annual return, the overdue must be filed before the GST cancellation procedure can begin.

The application for GST cancellation should be filed on the unified GST site using Form GST REG-16. The following information must be included in the GST cancellation application.

• Contact information, which contains a phone number and an e-mail address. The reason for the cancellation.
• The intended cancellation date.
• Particulars of the value and tax payable on the stock of inputs, the stock of semi-finished goods, the stock of completed goods, and the stock of capital goods/plant and machinery.
• Particulars of the entity's registration in which the current unit has been merged, amalgamated, or transferred.
• Particulars of the taxpayer's most recent GST return, as well as the ARN of the particular return.

Grounds for rejecting a cancellation application

Why is the application to revoke the GST registration rejected?

Following the submission of the GST cancellation application, the application may be accepted, and the registration will be cancelled on the date specified in the order.

In some cases, the Officer in charge may decide to reject the application if:

• The application that was submitted was incomplete.
• The new entity in a business transfer, merger, or amalgamation has not registered with the tax office before applying.
• In such cases, the Officer in charge informs the applicant in writing about the nature of the disagreement.
• The applicant is expected to react to the letter within seven days of receiving it. If the applicant does not do the same, he may reject the application after giving him/her a chance to be heard.

Consequences of failing to cancel GST registration

What if a GST registration is not cancelled?

If no commercial activity occurs after acquiring GST registration, the taxpayer must begin the GST cancellation procedure as outlined. If a taxpayer stops submitting GST returns and let his GST registration to lapse, he will be unable to get new GST registration under the same PAN.

If the government cancels a GST registration, the taxable person must first seek for revocation of the cancellation of the GST registration by paying any late costs. After restoration, appropriately cancel the GST or continue submitting GST returns.

As a result, once a GST registration is established, the taxpayer must check compliance. There is no commercial activity, thus submit for GST registration cancellation as soon as possible. After the GST registration cancellation processes are completed, the suspension of GST registration can be reversed. The removal of GST registration suspension shall be effective as of the day the suspension was lifted.