GST Cancellation
Once you cancel GST registration, then you don't have to file any GST return, but in case you do not cancel the GSTIN when you are not using the same. In that case you have to pay the penalty for non-filing. Let's discuss in detail about the GST Cancellation process, its advantages and the steps involved in GST cancellation.
What is GST Cancellation?
In simple terms, cancellation of GST registration means the taxpayer is no more a registered person under GST. Now he does not want to collect or pay GST. Registration can be revoked by authorised officer if he is not satisfied, by an order in FORM GST REG-22 within 30 days from the date of receipt of the application. And the reason for cancellation will be recorded in writing.Who can cancel your GST Registration?
It can be requested by the taxpayer if turnover is less than 20 lakhs or in any other situation faced by the taxpayer.It can be cancelled by the Tax Officer after proper inquiry.
It can be cancelled by legal heirs in case of the death of the taxpayer.
What are the disadvantages of GST cancellation?
After the cancellation of registration, you will not be allowed to pay GST anymore.For businesses, it is necessary to register under GST, because if registration is cancelled and business is still continued then you will be held liable for penalties under GST.
Continuing business without GST registration is an offence under GST.
What is the process for GST cancellation?
Login to the GST portal and click on the cancellation of provisional registration.A cancellation page will appear, now enter your GSTIN, and the name of the business will appear automatically.
Now mention the reason for the cancellation.
Then you will be asked if you have issued any tax invoices during the month.
Simply fill up all the details of authorized signatories and sign off with EVC (LLPs and corporates need to sign with DSC).
What are the forms used for GST cancellation?
GST REG 16
The forms are only applicable when the taxpayer submits for registration cancellation and there is no other consideration for the application other than the taxpayer's application that has elapsed one or more years following the GST registration.GST REG 17
The REG 17 form can be used by an authorised GST officer to issue a notice of show cause/cancellation to a registered taxpayer and its business entity. After providing the GST REG 17 form to the taxpayer, the authorised officer can revoke the registration and seek to show cause as to why the registration should not be terminated.GST REG 18
The show-cause notice can be responded to by using the provided GST REG 18 form within the time frame stipulated in the sub-rule (1). The taxpayer or the party in question must respond to the notice within seven days of its issue, providing an explanation for why the registration should not be cancelled.GST REG 19
The GST REG 19 form is used by the GST officer to issue a formal order cancelling the GST registration. The notice must be sent within 30 days of the date of the application or the response date in the GST REG 18 form.GST REG 20
If the GST officer is satisfied with the show cause notice, he can instruct that all procedures toward the cancellation of the registration be stopped, and he should issue an order in Form GST REG 20.Required Documents
| Acceptable Document | Document Type | Additional Details |
|---|---|---|
| Annual value of inward supplies and ITC availed | demo data | demo data |
| Details of Input Tax Credit | demo data | demo data |
| Disclosure of Annual sales | demo data | demo data |
FAQs
You Ask, We Answer
If the application that was submitted is incorrect or when a business is transferred, merged, or combined but the new firm hasn't registered with the tax authority before an application is submitted.
If the GST officer involuntarily cancelled the application, the taxpayer may request to revoke the cancellation.
All registered taxpayers, except for those covered by Rule 12 (which applies to registered individuals who must withhold or collect tax at source) and taxpayers who have been issued a UIN and the registered person's legitimate heir.
Yes, other than in cases where the cancellation was made by a tax official, there are no restrictions on obtaining a GST registration after one has been cancelled.
An officer under the GST may act independently or a request submitted by the registered individual or if a registered person passes away, their legal heirs may cancel their GST registration.
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