Cancel GST Registration

Canceling GST registration is a process whereby a registered taxpayer may opt to cancel his or her GST registration voluntarily or forcefully. It is done by Section 29 of the Central Goods and Services Tax (CGST) Act, 2017. Based on this section, the registered person can apply for cancellation if he is not required or his business is no longer required to be registered under GST.

Rule 20 of the CGST Rules, 2017 outlines more about the cancellation of GST. This rule details how registration cancellation is done, including the forms to be filled and the time taken to complete the process.

This clearly indicates that canceling one’s GST registration has serious consequences. Contrary to this, as soon as you cancel it, you will be unable to charge your customers GST or input tax credits either. During the year-end preparations, there will also be a final return and payment of any due taxes.

In this case, at Compregi, we know that it may be difficult for you to deal with all these legalities. That is why we help professionals guide you in canceling GST. Our team also ensures that we are conversant with the latest GST laws so your cancellation can be effected in the most streamlined way and within the law.

Documents required to cancel GST Registration

GSTIN

ID Proof like PAN and Aadhar card of the signatories.

Lifetime validity DIN to safeguard the interest of the company.

Last GST return details

Cancel GST Registration Cost

We at Compregi believe in complete transparency in the complete registration process of your company. Below mentioned cost structure includes all the necessary government fees required at multiple stages of registration.

UPDATE BUSINESS CODE (HSN CODE)

799/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing

CANCEL GST REGISTRATION

799/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing
  • 100% Peace of Mind

GST RETURN FILLING

799/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing

Criteria for GST Cancellation: Who Can Apply?

There are various reasons for which the GST registration can be cancelled and this can be done by various parties. Let’s look at who can apply for GST cancellation:

By the Taxpayer

A taxpayer has the right to apply for GST cancellation in certain circumstances voluntarily.

  • Where the business is shutting down or stopping its activities in some areas or departments.
  • If there is a change of business ownership in the course of amalgamation, merger or demerger.
  • In case of a change in the constitution of the business organization which leads to a change in PAN.
  • If the taxpayer is no longer liable for being registered under GST,

For instance, you can apply for cancellation if your business turnover reduces and drops below the limit stated in the GST laws.

By Tax Authorities

It can be pointed out that the powers to cancel GST registration lies with the tax authorities in limited circumstances:

  • Where the registered person has not engaged in any business from the place declared to the Commissioner.
  • Where bills or invoices are raised in such a manner that no actual supply of goods or services has occurred.
  • In the event where there is a violation of the anti-profiteering provisions.
  • In this case the person has failed to file returns for a continuous period of time.

Unlike the immediate cancellation of the registration, the tax officer will have to serve a show-cause notice to the taxpayer.

By Legal Successors

The legal heirs of a sole proprietor’s business can apply to cancel the GST registration in case the proprietor dies. This helps to ensure that the business has met its GST obligations and has no outstanding closing balances.

What are the Documents Required to Cancel GST Registration

The following are the documents you may need to submit in order to cancel your GST registration:

PAN Card of the authorized signatory

Aadhaar Card of the authorized signatory

Details of the last return filed by the taxpayer

Reason for cancellation (in writing)

Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) for verification

Details of inputs, semi-finished goods, and finished goods in stock

Challans for payment of dues, if any

Step-by-Step Process to Cancel GST Registration

Canceling your GST registration involves several detailed steps:

Log into the GST Portal

Go to www.gst.gov.in and then login using the GSTIN and password.

Navigate to Cancellation Application

Click on the tab that says “Services” then click on the option that says “Registration” then click on the option that says “Application for Cancellation of Registration”.

Fill in Form GST REG-16

  • Select the reason for cancellation from the list of the options provided in the small drop-down list.
  • Remember to type the date from which you wish the cancellation to take effect.
  • Inform the quantity of raw materials, half-finished products, and products in the stock.
  • Please provide details of any outstanding/ impending tax returns, if any.

Upload Required Documents

Attach scanned copies of all of the required documents. Make sure all the documents are well printed and free from any form of blurring or blotting.

Submit the Application

  • Double-check all the input.
  • The application has to be digitally signed using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
  • On the last, click the “Submit” button to complete the application filing.

Track the Application

Retrieving the ARN generated after submitting the application.

The applicant is advised to use this ARN to monitor the status of his/ her application on the GST portal.

Respond to Queries

In some cases, the tax department may have queries or may require the company to provide further information.

You should ensure that you promptly respond to any such requests in order not to be inconvenienced.

Receive Cancellation Order

If your application is approved, you will be furnished a cancellation order in the prescribed form GST REG-19. If rejected, you shall get an order in the Form GST REG-05.

Revocation of Cancellation of Registration

In certain cases, you may be required to withdraw the cancellation of GST registration. This can happen if:

01
This was in actuality, a cancellation done by mistake.
02
This implies that the business situation has changed since the time the cancellation was given.
03
A registration in Form GST REG-21 must be filed within 30 days of the cancellation order.
04
The proper officer will consider your case after going through the documents that you have provided.
05
If agreed with, they shall give an order in the form GST REG-22

Bear in mind that you are not allowed to apply for revocation where the registration has been cancelled for failure to file returns. In such cases, applicant must have to file all pending returns and pay all the amount which they have to pay before applying for revocation.

Consequence of Cancellation of GST Registration

 When you cancel your GST registration, you will experience the following:

You are no longer able to charge GST to your customers

You can’t input tax credits

After cancellation, you must file a final return of the GST registration in the form of GSTR-10 within 3 months of the cancellation date.

Any stock at the time of cancellation of the demerger would attract tax and therefore must be declared.

FAQs

Can a Business Re-register for GST after Cancellation?

Indeed, a business can re-register for GST after cancellation if it wants to register again. There is no limitation on the number of times one can register with a particular domain name; however, you will have to register again.

How to Activate a Cancelled GST Registration?

A canceled GST registration can be revoked within 30 days of the date of cancellation by applying for it. This can be done using Form GST REG-21.

Can I cancel GST number without filing returns?

Unfortunately, you cannot cancel your GST registration unless all the returns that were due at the time of registration have been filed. Some conditions for cancellation apply, including the payment of all dues.

Can I get new GST after cancellation?

Yes, following the above procedure is possible to get a new GST registration even after cancellation. You would have to begin as a new registrant of the site you’re interested in joining.

Can I suspend my GST registration?

It is important to note that GST registration cannot be suspended. It’s active or canceled. However, the tax authorities may cancel your registration, and your registration can be suspended during the process.

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