What is GST Cancellation?
GST registration can be canceled voluntarily if the business is dormant or has the necessary business turnover. Further, a GST registration can be revoked by a GST officer if the company is non-compliant. Once GST registration is canceled, the person or entity is no longer required to file GST returns and is not required to pay or collect GST.
Procedure for GST Registration Cancellation
GST registration cancellation in Lucknow can help taxpayers cancel their GST registration online. Before beginning the process, the taxpayer must file all overdue GST returns. If there is non-compliance with the GSTR-3B, GSTR-1, or GST annual return, the late return must be filed before the GST cancellation process can begin.
Step 1: GST cancellation application is submitted using Form GST REG-16 on the common GST portal. The following information must be included in the GST cancellation application.
Step 2: The GST Officer has to review the application and issue an order cancellation in Form GST REG-19 within 30 days from the application’s date. The cancellation will be effective from a date determined by the officer, and he will notify the taxable individual.
We will also monitor your GST registration cancellation application, reply to any questions, and assist you in completing the process once you have submitted it.
Once GST registration is canceled, the person or entity 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. This is done to make sure the taxpayer has no GST dues pending. This provision does not apply to input service distributors or non-resident taxpayers who must pay tax under Sections 10, 51, or 52.
If the final GST return is not filed in Form GSTR-10, the taxpayer will receive a notice in Form GSTR-3A requiring them to do so within 15 days after the notice’s issuance.
If the taxpayer ignores the notice, steps will be made to determine the taxpayer’s liability using the facts available to the concerned officer. The assessment order will be canceled if the applicant files the return within 30 days of receiving the notice.
Documents Required For GST Registration Cancellation:
GST registration cancellation in Lucknow will require these documents:
PAN card of the authorized signatory
Aadhaar card of the authorized signatory
Details of the last return filed by the taxpayer
Voluntary GST Cancellation
If a person or entity with GST registration wishes to cancel their GST registration, a cancellation request must be submitted to the GST Department in Form GST REG-16. After reviewing the application, if the GST Officer is satisfied, they will issue an order to terminate GST registration in Form GST REG-19.
The following are some of the top reasons for voluntary GST registration cancellation:
Voluntarily canceling a GST registration can save the business owner from the unnecessary hassles of filing GST returns each month and payment of penalty or late-filing fee.
Cancellation by GST Officer
An officer can initiate the cancellation of a GST registration under GST if the officer has the justification to cancel the GST registration. The proceedings for GST Cancellation by Officer will begin by issuing a show-cause notice in Form GST REG-17.
A GST officer can start the cancellation process if any of the following events occur:
The notice to the taxpayer from the GST Officer would be sent in Form GST REG-17 with specific reasons why the GST registration should be canceled. The information would also allow the taxpayer to respond to the notice and have a date and time if a hearing is scheduled.
If the taxpayer responds to the notice and the proper authority is satisfied with the response, they may dismiss the case and issue an order in Form GST REG-20. If unsatisfied, he may issue a Form GST REG-19 order canceling the GST registration.
Preparing to Cancel GST Registration
Before starting the GST cancellation process, the applicant must pay any overdue GST liabilities. Furthermore, the taxpayer must remit the input tax in the stock of inputs, semi-finished goods, finished goods, and capital goods, or the output tax liability of such goods, whichever is more significant.
The input tax credit on the current stock must be repaid, as the taxpayer will no longer be eligible to claim ITC if the GST registration is canceled. GST electronic credit or cash ledger can be used to make the final GST payment. The final payment can be made at the same time the final GSTR-10 return is filed.
Rejection of application for GST cancellation
In some instances, the concerned officer may decide to reject the application for the following reasons:
Revocation of GST Cancellation
GST registration cancellation in Lucknow and revocation of GST cancellation means that the cancellation decision has been overturned, and the registration remains valid. This only applies when a tax officer cancels a taxable person’s registration on his initiative. A taxpayer can use it within thirty days of receiving the cancellation order for revocation of the order. The following are the steps to file for revocation of GST cancellation: