GST Registration Cancellation

Here are the steps for migrating taxpayers to cancelling their GSTIN on the GST Portal:

To provide LUT on the GST Portal/GSTN, complete these steps:

• Step 1: Here are the steps for migrating taxpayers to cancelling their GSTIN on the GST Portal:
• Step 2:
• A page for cancellation appears.
• Your GSTIN and business name will appear immediately.
• You must provide a reason for your cancellation.

You will be questioned if you have issued any tax invoices throughout the month.

Enter the names and locations of authorised signatories. Finally, if you are a sole owner or a partnership firm, sign off with EVC. DSC is required of all LLPs and corporations.

Note:  This service is available to taxpayers who have not yet issued tax invoices. On issuing a tax invoice by a taxpayer, the taxpayer must complete FORM GST REG-16. Please see the list below.

What makes a taxpayer want to get rid of his registration?

• The company has ceased operations.
• The business has been fully transferred, amalgamated, demerged, or otherwise disposed of — the transferee (or the new company formed through amalgamation/demerger) must register.
• If the transferor goes out of business, the registration will be cancelled.
• There has been a change in the company's structure.

(Example- A private limited company has turned to a public limited company)

Cancellation of documents

Those who cannot use the preceding procedure must submit a cancellation request using GST REG 16. The lawful heirs of a deceased taxpayer will proceed in the same manner as described below.

• Form GST REG 16 will be used to file a cancellation request.
• Details of inputs, semi-finished, and finished items kept in stock on the day cancellation of registration is applied must be given in form GST REG 16.
• Liability for it
• Payment information
• The proper authority must issue a cancellation order in GST REG-19 within 30 days of receiving the application.
• The cancellation will take effect on a date set by the officer, and the taxable person will be notified.

Cancellation by a Tax officer

Why will the officer refuse to register?

The registration can be revoked if the taxpayer (a) does not conduct business from the declared place of business, OR (b) issues an invoice or bill without providing goods or services (i.e., in violation of the provisions) OR (c) violates the anti-profiteering provisions (for example, by not passing on the ITC benefits to customers) OR (d) violates the anti-abuse provisions (for example, by not passing on the ITC benefits to customers) OR With effect from January 1, 2021, (d) Using ITC from the computerised credit ledger to discharge more than 99 per cent of the tax debt for selected taxpayers who violate Rule 86B – with a total taxable value of supply exceeding Rs.50 lakh in the month, with some exclusions. OR

(e) A taxpayer who is unable to file GSTR-1 because GSTR-3B has not been filed for more than two months (one quarter for those who choose the QRMP scheme) OR (f) A taxpayer who receives an input tax credit in violation of section 16 of the Act or the rules.a

Procedure

• If the proper officer reasons to terminate a person's registration, he will issue them a show- cause notice in the Form GST REG-17.
• Within seven days after receiving the notice, the person must respond in form REG–18 explaining why his registration should not be cancelled.
• If the response is acceptable, the proper authority will dismiss the case and issue an order GST REG–20.
• The relevant officer will issue an order in GST REG-19 if the registration is liable to be cancelled. The order will be sent within 30 days of receiving the show cause response.

(Example- A private limited company has turned to a public limited company)

Revocation of cancellation of registration

What is cancellation revocation?

The official cancellation of a decision or pledge is known as a revocation. Revocation of cancellation of registration indicates that the cancellation decision has been overturned, and the registration remains valid.

When to revoke a cancellation?

This only applies when a tax officer cancels a taxable person's registration on his initiative. The taxable person can petition the officer for revocation within thirty days of receiving the cancellation order.

• If a registered person's registration has been cancelled suo moto by the proper officer, an application can be filed for revocation of cancellation in form GST REG-21.
• He has 30 days from the date of serving of the cancellation order at the Common Portal to submit it.
• If the officer is satisfied, he 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.
• The proper officer can issue an order in GST REG-05 rejecting the revocation application and informing the applicant.
• Before rejecting an application, the proper authority 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 notice, 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.

Frequently Asked Questions

Is it possible for a business to register for GST after the cancellation?

Yes, accepting GST registration after it has been revoked is not prohibited unless a tax officer terminates it.

Can you cancel your GST registration?

For specific reasons, the GST registration issued can be revoked. The department may begin the cancellation on its initiative, or the registered individual may apply for cancellation of their registration. The legal heirs can petition for cancellation if the registered person dies.

Is it possible to cancel a GST registration without filing returns?

If a registered taxpayer under the composition scheme has not submitted returns for three years in a row, the proper officer has the authority to commence cancellation proceedings.

Is there a charge for cancelling GST?

According to the Act, late GST cancellation carries a penalty of Rs. 100 per day. As a result, it's 100 under the CGST and 100 under the SGST.

What happens if you cancel your GST registration?

Suppose the proper officer has revoked a person's GST registration for failing to comply with the statutory provisions of GST. In that case, they must apply for a new GST registration and go through the GST reregistration process.

How do I terminate my GST registration that has been suspended?

Go to www.gst.gov.in to access the GST Portal. Enter the username and correct password to gain access to the account. Select services in the GST Dashboard, then registration under services, and then an application for revocation of cancelled registration under registration.

After 180 days, how can I revoke my GST registration?

After 180 days of cancellation, the GST registration can only be cancelled by filing an appeal with the Commissioner GST of the specified area.

How long do you have to cancel your GST registration?

Suppose the tax officer is satisfied with your explanations. In that case, he will issue an order for the revocation of GST registration in Form GST REG-22 within 30 days of receiving your response in Form GST REG-24. If the tax officer is dissatisfied with the reasons stated, he can reject the application by issuing an order in Form GST REG-05.

Is it possible to terminate my GST registration if my annual revenue is less than 20 lakhs?

If you have mistakenly applied for GST and want to revoke your registration, you can only do so if your firm has an annual revenue of less than $20,000. (Total of sale and unregistered purchase).

What does GST suo moto cancellation mean?

Suo moto cancellation of GST registration refers to the tax officer cancelling registration under GST legislation. However, Section 29(2) of the CGST Act requires the official to justify his reasons for initiating such suo moto cancellations.