Voluntary Cancellation and Revocation of Cancellation of GST Registration

Goods and Services Tax (GST) is a combined policy for the indirect tax that is inclusive of CS, Service Tax, VAT, Central Excise duty, Entertainment Tax, etc. and is applicable all over India effective from 1st July 2017. This is why it is mandatory for all the Business-holders who have their annual turnover exceeding 40 Lakhs INR or supply their Goods and Services inter-state or via an E-commerce platform. About the same, GST Registration might turn out to be a difficult task but the cancellation for the same is even more so. It is also to note that in the case of voluntary registrations under GST, an Application for Cancellation of GST Registration shall only be made after completion of one year from the date of Registration.

The procedure for Cancellation of GST Registration:

1. Circumstances for the cancellation of Registration under Goods & Services Tax-

• Whether the Business has been Transferred completely, merged or Disposed Of etc. then the new Business concern, in this case, will be required to get registered for GST. 
• The Business has ceased to exist
• When there is a change in the constitution of business 

2. In case of Voluntary Cancellation of Registration, which Form To file?

In a case where the individual or business entity, or the legal heirs of the deceased individual, wishes to cease the GST Registration of the business concern, They must Apply for the cancellation of GST registration in the Form GST REG 16. 

The method is described below:

• Application for Cancellation has to be made in Form GST REG-16. 
• The below-mentioned details must be included in Form GST REG-16
• Complete Details of goods held in stock whether finished or semi-finished both, as of the date of the cancellation of registration are applied
• Liability, if any
• Payment details
• The Appropriate Authority from the department has to issue an order for cancellation of Registration in the form GST REG-19 within 30 days From the date of application of cancellation. Furthermore, the cancellation will take effect from the date decided by the officer and the Taxpayer will be notified about it. 

3. What is the Revocation of Cancellation of Registration? 

Revocation means to revoke a decision or application in this case. Revocation of cancellation of GST Registration means that the application of cancellation of registration has been counteracted or reversed and that the registration will still be valid.

4. Revocation of Registration: Applicability:

The Revocation is only applicable when the GST officer has cancelled the registration of the Taxpayer on his own accord. The affected Taxpayer can apply to the officer for the revocation of cancellation within 30 days with effect from the cancellation order.

5. Procedure to apply for Revocation of Cancellation:

• The Taxpayer who is registered may submit Form GST REG-21, for the revocation of cancellation of registration. If this registration has been cancelled as suo moto by the authoritative officer.
• The application for Revocation must be submitted within 30 days effective from the date of cancellation of Registration, on the GST web portal.

6.  The outcome of the Cancellation of GST Registration:

After having the GST Registration Cancelled, the Taxpayer will not be liable to pay GST anymore. 

In a case where the business must have registered under GST and they have their Registration cancelled but the business activities continue to run, then it will be treated as an offence under the Goods and Services Act and will be levied with a heavy penalty. 

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