GST Registration Cancellation

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GST Registration Cancellation

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.

  • 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 supply of capital goods/plant and machinery.
  • Particulars of the latest GST return are filed by the taxpayer along with the ARN of the particular return.

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.

Final Return

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

PAN card of the authorized signatory

  • Aadhar Card

Aadhaar card of the authorized signatory

  • Last Return Details

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:

  • Discontinuance or closure of a business.
  • Transfer of business, amalgamation, merger, de-merger, lease, or other pertinent reasons.
  • Change in the company’s constitution results in a change of PAN.
  • Turnover reduces below the threshold limit of GST registration.
  • Death of the sole proprietor.

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:

  • If a taxpayer still needs to file GST returns continuously.
  • An assessee registered for GST voluntarily but did not start a business within six months.
  • The registered taxpayer has broken one or more sections of the GST Act or its Rules.
  • The GST registration is obtained through deception or malicious misrepresentation.
  • To dodge tax or improperly claim the input tax credit, a taxpayer supplies goods or services without an invoice or produces an invoice without a provision of goods or services.
  • In case of cancellation by the GST Officer, the officer would notify the taxpayer whose GST registration is liable to be terminated before cancellation. The taxpayer would then be given a reasonable opportunity to be heard before their GST registration is canceled.

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:

  • The submitted application needs to be completed.
  • The new entity has yet to register with the tax authority before applying for the transfer, merger, or amalgamation of business.
  • In such circumstances, the concerned officer provides an intimation in writing to the applicant regarding the discrepancy’s nature. The applicant must respond to the same within seven days of receipt of the letter. If the applicant fails to do the same, he may reject the application after allowing them to be heard.

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:

  • If a registered person’s registration has been canceled suo-moto by the proper officer, an application for revocation of cancellation in form GST REG-21 can be filed within 30 days of the cancellation order.
  • If the GST Officer is satisfied, they 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.
  • Further, the officer can issue an order in form GST REG-05 rejecting the revocation application and informing the applicant. However, before leaving an application, the officer must send the applicant a show-cause notice in GST REG–23, asking them to explain why the application should not be refused. Within seven working days of receiving the information, the applicant must respond in form GST REG-24. The proper officer will decide within 30 days of receiving the applicant’s clarification in form GST REG-24.
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