GST Cancellation

How to Cancel GST Registration?

Registration and cancellation processes are quite a nightmare for many. Undoubtedly, several steps are associated with them and missing any one of them means repeating the entire procedure from the very beginning.

Cancellation of GST registration simply implies that you won’t be a GST registered entity anymore. You won’t be able to collect or pay GST or claim the input tax credit. Moreover, you will not have to file GST returns any further.

The process of GST cancellation is no rocket science if done right. But a simple mistake can cost you both money and time. So, if the question- how to cancel GST registration, still bothers you, then you must read out this entire guide.

We have covered every minute detail related to the cancellation of GST registration. Therefore, we suggest you don’t skip any section or you will miss out on some specific information.

Application for Cancellation of GST Registration Letter Format 

You can find the application for cancellation of GST cancellation letter format on the official website of Goods and Services Tax. You or the taxpayer is required to file the application in Form REG-16 on the common GST portal within thirty days from the date of the event sanctioning the cancellation.

In specific conditions where identifying the exact date of the event is quite difficult, the deadline can be deciphered in a liberal way, in which case the application won’t be rejected on the possible contravention of the deadline.

Procedure for Cancellation of GST Registration by the Taxpayer

The process of cancelling GST registration is quite lengthy yet simple if followed correctly. Refer to the steps listed below:

Step 1: The first and foremost step for any taxpayer willing for GST cancellation online, needs to visit the official website of Goods and Services Tax. Then, sign in with your login credentials i.e. username and password.

Step 2: Next you need to click on the ‘Services’ tab, where you will find a ‘Registration’ option.

Step 3: Click on the “Registration’ tab and then, select the ‘Application for Cancellation of Registration’ option under Registration.

Step 4: You will be then directed to Form REG-16 where you will be asked to fill in info such as Basic Details, Verification and Cancellation Details, and more.

Moreover, you will be required to fill in the bank details along with the address manually for any future references. Or you can select the same as the above option to copy the same address. Then, click on the tab Save and Continue.

Step 5: Once you are done with the above steps, the next tab for Cancellation Detail will become active. Here, you have to fill up all the mandatory sections under the Basic Details tab.

Step 6: Now that you have filled up the basic details, you will have to choose from the various options available in the ‘Reasons for Cancellation’ tab as listed below:

• Change in the Constitution of business resulting in the change in PAN;
• Ceased to be liable to pay GST;
• Closure or discontinuance of business;
• Transfer of business owing to the merger, amalgamation, leased, sale, de-merger or otherwise;
• Death of Sole Proprietor;
• Others.

Step 7: After choosing the reason/(s), select the date from which registration is to be cancelled, enter GSTIN, then click on Save and Continue.

Step 8: Now the verification tab will become active. Again, you are required to fill up all the details under the Verification tab.

Step 9: Last but not the least, you have to close the application by either clicking on the ‘Submit with EDC’ or ‘Submit with DSC’ option. In the former option, you will receive an OTP on your registered contact address. You have to enter it and submit it. While the latter requires you to submit it along with your Digital Signature.

Step 10: After the concerned officer has verified your application, he shall then, pass a cancellation order in Form GST REG-19 within thirty days from the date of filing the application.

The cancellation with effect to the date will be determined by the tax officer and notified to the applicant by him about the same.

Document Requirements for GST Cancellation/Checklist for GST Cancellation

You will need several forms to file for the cancellation of GST registration. They are as follows:

• Form GST REG-16: It’s required to be filed by the registered individual or taxpayer.
• Form GST REG-17: It is needed to issue show cause notice for the cancellation of registration.
• Form GST REG-18: It is required for a reply to Show Cause Notice.
• Form GST REG-19: The form is needed at the time of the dissolution of the order.
• Form GST REG-20: This GST cancellation form entails an order to drop the GST cancellation proceedings.
• Form GST REG-21: The form is needed at the time of ‘Revocation’ of the GST cancellation.
• Form GST REG-22: It is required for an order revoking the GST registration cancellation.

Information Required While Filing for Cancellation of GST Registration

While filing for the cancellation of GST registration in Form GST REG-16, you need to fill in the following information:

• Contact address, including the mobile phone number and email address.
• Grounds of cancellation (reasons for cancellation)
• The address of the primary place of business
• GSTIN
• The desired date of cancellation
• Details of registration of the business if the existing unit collaborated, merged, or transferred.
• Details of the value and tax payable on the stock of inputs, the inputs available in finished goods, semi-finished goods, the stock of capital goods/plant and machinery.
• Particulars of the latest return along with the ARN of the particular return.

How to Check GST Cancellation Status? 

At the 28th GST meeting chaired and addressed by Shri Piyush Goyal, the government made some amendments to the GST cancellation process. According to the new amendment, the GST registration status shall be suspended immediately after the applicant has successfully filed for the surrender of GST registration. Hence, there be no GST liability once you have filed for the GST registration cancellation.

Now, once you are done with filing of GST cancellation, you can track the status if you want.

For tracking the status of your GST registration cancellation:

Step 1: Go to the official portal of GST. Log in with your credentials. Now, click on the Services tab and then, Registration option under Services.

Step 2: Next, you will see a drop-down from where you need to choose the ‘Track Application Status’ option. You will be then directed to another page. Here, you have to select the ‘Submission Period’ tab.

Step 3: Now enter the ‘From’ and ‘To’ dates as mentioned in the form for cancellation of registration and hit the ‘Search’ button.

Step 4: On clicking the ‘Search’ button, the screen will display the ARN related to the application you filed along with the cancellation status.

Who Can Cancel GST Registration?

GST registration can be cancelled by any of the following entities:

• Taxpayer whose turnover is less than the threshold value;
• Tax officer under GST on his own accord;
• In case of death of the registered person, legal heirs can cancel a GST registration;
• A person who isn’t operating his business anymore or has closed the business.

Reasons for GST Registration Cancellation

There could be various reasons for GST Registration cancellation. They are as follows:

1. The business has been terminated, transferred completely for any reason including amalgamation with another legal entity, death of the proprietor, demerge or otherwise disposed of;
2. Any change in the constitution of the business;
3. A person is not liable to register under the Goods and Services Act, registered under any of the existing laws;
4. In case the person has violated any of the provisions of the GST Act or the rules made thereunder;
5. The taxable entity (except the one who has voluntarily acquired registration under sub-section (3) of Section 25 of the CGST Act, 2017) is no longer eligible for being registered;
6. Any taxpayer under Composition levy hasn’t furnished returns continuously for three consecutive tax periods;
7. Any registered individual, except the one taxpayer under Composition levy, hasn’t furnished returns continuously for six months;
8. The person with voluntary registration under sub-section (3) of Section 25 hasn’t initiated business within six months from the date of GST registration;
9. If somebody has obtained the registration through fraudulence, suppression of facts, or willful misstatement.

Grounds of Non-acceptance of Application for GST Cancellation

The concerned tax officer will decide whether to accept the application or not on the following grounds:

• If the submitted application has incomplete or incorrect information;
• Wherein the event of transfer, amalgamation or merger of business, the new entity hasn’t filed for the registration with the tax authority before submitting the application for cancellation.

In such conditions, the tax officer will offer a written intimation to the applicant about the nature of the discrepancy. In which case, the latter is answerable to the same within seven days of the date of receipt of the letter. Failing to respond to the same may lead to the rejection of the application after giving him/her the opportunity to be heard.

Moreover, the reasons for the rejection must be recorded.

Final Return

Every applicant who has got their GST registration cancelled are required to file the final return in Form GSTR-10 within three months from the date of order of cancellation or the date of cancellation, whichever is later.

Filing a final return is mandatory to assure that the taxpayer doesn’t hold any liabilities that have been incurred under Section 20 of the CGST Act.

Note: Non-resident taxpayers or Input Service Distributors who are supposed to pay tax under Section 10, Section 51 or Section 52 are exempted from this provision. 

How to Activate Cancelled GST Registration?

Typically, the activation of the cancelled GST Registration is known as the Revocation. Any registered taxable entity can opt for the revocation of GST registration cancellation within 30 days from the date of service of the order of GST registration cancelled.

You can apply for the revocation only if the registration has been cancelled by the proper officer on his own motion and not voluntarily by you or the taxpayer.

For revocation of GST Registration, the applicant is required to file an application in Form GST REG-21, either directly or via a facilitation centre notified by the Commissioner.

Follow the following steps for the Activation/Revocation of Cancelled GST Registration:

Step 1: Go to the official GST Portal at www.gst.gov.in

Step 2: With the help of your username and correct password, login into your account.

Step 3: You will be then, directed to the GST dashboard where you have to select Services. Further, choose ‘Registration’ under the Services section and then, click on the option ‘Application for Revocation of Cancelled Registration.’

Step 4: You will then be shifted to the next page consisting of your GST cancellation order details. You are supposed to fill in the reason for the revocation of cancelled registration.

Furthermore, you have to upload an appropriate supporting document. Then, check the verification checkbox.

Step 5: Next you have to choose the ‘Name of Authorized Signatory’ from dropbox and enter the location in the ‘Place’ option where the application is filled.

Step 6: Finally, you have to select either of the boxes named ‘Select with DSC’ or ‘Submit with EVC.’

Final Words

With this we hope, you would have got a complete idea of how to cancel GST registration online. As we mentioned earlier, the process is quite lengthy, yet simple if followed correctly. So, while you are in the process of cancelling your GST registration for any reason, ensure that you follow every step precisely.

Besides, keep in mind that you are not operating your business or have winded it up, cancelling GST registration would be a wise decision. Otherwise, you will be charged, taxed, and may even have to pay a penalty.

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