Cancellation Procedure of Registration under GST

Introduction

In case, someone no longer require the GST registration, he can cancel the same. The reason for such cancellation includes no applicability of GST, shutting down of business, retiring from profession etc. In some of the cases, the tax officer can also cancel a GST registration. This article provides of cancellation procedureof GST registration.

Meaning of GST Registration Cancellation

The cancellation of GST registration suggests that the taxpayer will no longer be a registered GST person. The taxpayer is not required to collect or pay GST or can claim for input tax credit. Moreover, he is no longer required to file GST returns.

The Consequences of GST Registration Cancellation

As mentioned above, the  taxpayer is no more obliged to pay GST.  However, for some businesses, GST registration is compulsory as per the guidelines under GST Act. In that case, if the GST registration is cancelled and the business is still active, then it will be called as an offence and heavy penalty will be applicable under GST.

Who can cancel the GST Registration?

 GST registration can be cancelled by an application for cancellation, if  it is a voulntary registration made under GST.  However, the following are the details for the cancellation of registration for differnt persons;

Cancellation of GST Registration By Migrated Taxpayers

The deatiled process of cancellation of GST registration migrated taxpayers on the GST Portal is provided below;

 Step 1

Login to the  GST Portal and click on the option with heading Cancellation of Provisional Registration

Step 2

After clicking on the same, the cancellation page will be shown

Details of  your GST Number, business name will be shown

Provide a reason for the cancellation

Then, you will be asked to if you had issued any tax invoice in the current month.

Fill up the details including place and authorized signatories.

Lastly, sign off the EVC in case of partnership or proprietorship

In case of comapnies and LLPS sign with DSC.

Note: Please note a taxpayer can avail the above service if he has not issued any tax invoice. If the taxpayer had issued tax invoice then he can opt for form REG-16. The deatils of which are mentioned below.

 Cancellation by Taxpayer (Other than Migrated)

If someone who is unable to follow the above-mentioned procedure can file an application for cancellation with form GST REG 16. The deceased taxpayer’s legal heir can follow the below mentioned procedure;

• Application has to be made in form GST REG 16. The form includes the following details;

1. Details of  finished, semi-finished goods held as inventory on the date on which cancellation of GST is being requested
2. The Liablity
3. Payment Liability

 After submitting the aforesaid form, the GST officer will issue an order for cancellation of GST in form GST REG-19 within 30 days from the application submission.  The cancellation will be done once the date is determined by the officer and he will inform the same to the taxpayer.

 Cancellation by Tax Officer

The detailed process of GST cancellation by tax officer is provided below;

• In case, the GST officer has good reasons ot cancel the GST registration of a person, then the officer will send a show cause notice to the taxable person under form GST REG-17.
• The taxable person has to reply to the notice within 7 days from the date of receiving the notice  including the why the registration is being cancelled in form REG-18.
• If the GST officer finds the reply satisfactory, then he will stop the proceedings of cancelllation and accordingly, he will pass an order in form GST REG–20.
• If the GST officer finds the reply unsatisfactory, then he will cancel the registration by passing an order in form GST REG-19. The aforesaid order will be sent within 30 days after the receipt of show cause reply.

Team 

Tax4wealth