If a business is inactive or doesn't generate the required amount of revenue, the GST registration may be voluntarily terminated. Additionally, a GST officer has the authority to revoke a business's GST registration if it is not GST compliant. Once the GST registration has been cancelled, the person or organization is no longer required to submit GST returns or pay or collect GST.
Voluntary GST Cancellation
If a person or organization that has registered for GST wants to terminate their registration, they must file a cancellation request in Form GST REG-16 to the GST Department. The GST Officer will issue an order to terminate GST registration in Form GST REG-19 if, after evaluating the application, he or she is satisfied.
Some of the main explanations for voluntarily cancelling a GST registration include the following:
Closure or discontinuance of an enterprise.
Business transfers, groupings, mergers, de-mergers, leases, and other relevant factors.
Changes to a company's organizational structure that alter PAN.
The reduction in revenue brings it below the GST registration level.
Death of the single proprietor.
The business owner can avoid extra inconveniences like monthly GST return filing and late-filing fines by voluntarily cancelling their GST registration.
Cancellation by GST Officer
In accordance with GST, an officer may start the cancellation of a GST registration if the officer has a valid reason to do so. By sending out a show-cause notice in Form GST REG-17, the procedures for GST Cancellation by Officer would get started.
If any of the following circumstances take place, a GST officer may begin the cancellation procedure.
If a taxpayer has repeatedly neglected to submit GST filings.
An assesse voluntarily enrolled for GST but did not open for business within six months.
One or more provisions of the GST Act or its Rules have been broken by the registered taxpayer.
Deception or wilful misrepresentation is used to obtain the GST registration.
If a taxpayer generates an invoice without providing any goods or services, they can claim an input tax credit for doing so.
Procedure for GST Registration Cancellation
Taxpayers can cancel their GST registration online with the aid of Account kart. The taxpayer is required to file any past-due GST returns before starting the process. The late return must be filed before the GST cancellation procedure can start if there is non-compliance with the GSTR-3B, GSTR-1, or GST annual return.
Step 1: On the common GST portal, file a Form GST REG-16 request for a GST cancellation. The application for GST cancellation must contain the following details.
Email and a mobile number are included in the contact information.
Cause of cancellation
The cancellation date that you want.
Specifics of the price and tax due on the stock of inputs, the stock of inputs available in completed goods, semi-finished goods, and capital goods/plant and machinery.
Along with the ARN of the specific return, the taxpayer files information from the most recent GST return.
Step 2: The GST Officer must assess the application and, within 30 days of the application's date, issue an order cancellation in the Form GST REG-19. The Officer will inform the taxable individual of the cancellation, which will take effect on a date of his choosing.
If you want to cancel a GST registration, speak with an Account kart GST Expert. We'll verify whether you’re GST returns have been filed, help you submit any unfinished GST filings, and apply for GST cancellation.
In addition, when you have submitted your application, we will keep an eye on it, respond to any inquiries, and help you finish the procedure.
Final Return
In the event that a person or business' GST registration is cancelled, they are required to submit a final GST return on Form GSTR-10 within three months of the cancellation date, which is the earlier of the cancellation order's date or the cancellation date.
This is carried out to ensure that the taxpayer has no unpaid GST obligations. Input service distributors and non-resident taxpayers who are required to pay tax under Sections 10, 51, or 52 are exempt from this provision.
A notification in Form GSTR-3A will be sent to the taxpayer if the final GST return is not submitted in Form GSTR-10 and instructing them to do so within 15 days of the notice's issuance.
The concerned Officer will take action to ascertain the taxpayer's liabilities if the taxpayer chooses to disregard the notice. In the event that the applicant submits the return within 30 days of receiving the notice, the assessment order will be revoked.
Preparing to Cancel GST Registration
The applicant must settle any past-due GST liabilities before beginning the cancellation of GST process. In addition, the taxpayer is required to pay the greater of the input tax in the stock of inputs, semi-finished goods, finished goods, and capital goods, or the output tax liability of such goods.
If the GST registration is revoked, the taxpayer will no longer be qualified to claim ITC, so the input tax credit on the present stock must be reimbursed.
To make the final GST payment, you can use a cash ledger or a GST electronic credit. When filing the final GSTR-10 return, the final payment may be paid concurrently.
Rejection of application for GST cancellation
For the reasons listed below, the relevant Officer may choose in some cases to decline the application.
The application you submitted isn't complete.
The new entity has not registered with the tax authority prior to applying in the transfer, merger, or amalgamation of businesses.
The responsible Officer notifies the applicant in writing of the nature of the disagreement in such cases. Within seven days of the letter's receipt, the applicant must reply to the same. If the applicant doesn't comply, he may reject the application after giving the applicant a chance to be heard.
Revocation of GST Cancellation
A GST cancellation that has been revoked indicates that the cancellation call has been reversed and also the registration continues to be in result. This solely holds true once a tax official decides to cancel a ratable person's registration. A payer has thirty days from the date they receive the cancellation order to request the revocation of the order. The steps to file for the cancellation of the GST area unit as follows: • Within thirty days of the cancellation order, a type GST REG-21 application for revocation of cancellation is also submitted if a registered person's registration has been off Suo-moto by the suitable Officer. • Within thirty days of receiving the applying, the GST Officer could, if happy, reverse the cancellation of registration by provision associate order in type GST REG-22. Revocation or cancellation of registration should have a written justification. • The Officer could to boot issue associate order in type GST REG-05 denying the revocation application and notifying the human. However, the Officer should 1st issue the human a show-cause notice in GST REG-23 asking them to produce justification for the application's approval before rejecting it. The human should reply in type GST REG-24 among seven business days of receiving the notice. Once receiving the applicant's clarification in type GST REG-24, the suitable officer can create a choice among thirty days. Benefits of Voluntary GST Cancellation • The method for GST cancellation should be started by the payer if no enterprise takes place once getting GST registration. A payer cannot apply for a brand new GST registration with a similar PAN if he stops filing GST returns and lets his existing GST registration lapse. • Additionally, if the govt. terminates a GST registration, the ratable person is needed to 1st apply to possess the termination reversed by paying any late fees. If necessary, cancel the GST once the restoration or keep submitting GST reports. • Due to the current, the payer is needed to observe compliance once receiving a GST registration. Apply for the cancellation of the GST registration as before long as possible if there's no enterprise.
Documents Required For GST Registration Cancellation
PAN Card PAN Card of the authorized signatory. |
Aadhar Card Aadhar Card of the authorized signatory. |
Last return Details Details of the last Income Tax return filed by the taxpayer |
Company Authority Details When an existing company is merged, demerged or transferred. |
Tax Particulars Tax is payable on Input of stock or capital and input available on goods |
GST Registration Cancellation FAQ's
1. How long does it take to register under the GST?
An entity that is required to register for GST must submit an application within 30 days of the date that the entity first becomes subject to GST. Prior to starting their businesses, casual taxpayers and non-resident taxpayers must register with the GST.
2. Can a company operate all over India using a single GST number?
No. For each state where a taxable supply of goods or services is produced, an entity that operates in multiple states must register separately.
3. Can organizations with a single VAT or service tax register for a new GST?
The steps for converting an existing service tax, VAT, or central excise to GST are outlined in the GST portal. To get GST, entities registered under the previous tax rules must complete the mandatory GST migration process.
4. Can I voluntarily register for GST?
Yes. Even if they are not required to be registered, any organization that wants to claim an input tax credit can do so voluntarily. Following registration, voluntary registered entities must follow the same rules as apply to regular taxable persons.
5. Is PAN a requirement to register for GST?
Yes. For regular taxpayers and sporadic taxpayers to register under GST, a PAN is required. However, a non-resident taxable person is not required to have a PAN in order to register.
6. What is the GST certificate's expiration date?
Upon issuance of the GST certificate, the registration is valid until it is given up, revoked, or suspended. There is a validity period only for GST certificates granted to non-resident taxable people and occasional taxable persons.
7. Is it legal for an unregistered company to charge customers with GST?
No, a non-registered individual without a GSTIN is unable to charge clients for GST or receive an input tax credit for GST paid.
8. How much time does it take to get a GSTIN?
Within seven working days of the GST application being submitted with all necessary supporting documentation, a GSTIN is assigned.
9. What does total turnover mean?
A person with the same PAN's aggregate turnover is the total value of all of their taxable supplies, exempt supplies, exports of goods or services, or both, and interstate supplies. The CGST, SGST, IGST, and GST cess are excluded from the total turnover.
10. Where can I obtain a GST certificate?
Only digital copies of the GST certificate are made available by the government. The taxpayer may download the GST certificate whenever they choose from the GST Portal after receiving their GSTIN.
11. From whom shall the tax payer acquire registration?
Every State from which a taxable supply of commodities, services, or both is made requires businesses and other entities that supply products or services to register for GST.
12. Who is the principal signing with authority?
The person who is principally responsible for carrying out an activity on the GST System Portal on behalf of the taxpayer is the primary authorized signatory. It may be the business promoter or another individual that the business promoters nominate.
13. Who has the principal power of attorney?
The person in charge of performing an activity on the GST System Portal on behalf of the taxpayer is known as the principal authorized signatory. It can be the business promoter or any other person put forward by the business promoters.
14. After being cancelled, may a firm apply for GST?
Yes, a GST registration can be obtained following a properly executed voluntary cancellation by the taxpayer. A GST registration may not be given again if an officer cancels it.
15. Is a single GST number sufficient for a company to operate throughout India?
No, a business that operates in many states must register separately in each state where a taxable supply of goods or services is made.
16. Am I able to voluntarily cancel my GST registration?
Yes, by following the GST cancellation process, any individual or company with a GST registration may give up their registration.