GST Registration Cancellation

When GST registration is canceled, the person or entity is no longer identified as a GST-registered taxpayer. This termination implies that they aren't required to gather, submit, or pay GST. Moreover, they can't claim input tax credits, and the responsibility of filing GST returns is also lifted from them.

If no business activity occurs after acquiring GST registration, the taxpayer must begin the GST cancellation process as outlined. If a taxpayer stops filing GST returns and allows his GST registration to lapse, he cannot apply for fresh GST registration using the same PAN

Further, if the government cancels a GST registration, the taxable person must first apply for the cancellation to be revoked by paying any late fees. Following the restoration, appropriately cancel the GST or continue filing GST returns.

As a result, once a GST registration is received, the taxpayer must keep track of compliance. Hence, if there is no commercial activity, apply for GST registration cancellation as soon as possible.

The following type persons can appy for GST Cancellation:

By the Taxpayer:

Taxpayers who possess a GST registration can voluntarily kickstart the cancellation procedure. This might be because they deem the registration unnecessary or because they fulfill specific cancellation criteria.

By Tax Authorities:

If tax officials find any non-compliance with the rules or inconsistencies in a taxpayer's activities or records, they have the right to cancel the GST registration. To initiate this, they can release a show-cause notice through the GST REG-17 form.

By Legal Successors:

In circumstances where a taxpayer passes away, the legal successors or heirs can put forward a request to annul the deceased's GST registration.

• Tax Deductors/Collectors: Individuals or entities specifically registered to deduct or collect taxes are not eligible to request cancellation of GST registration.

• Holders of Unique Identity Number (UIN): Entities or persons, such as foreign diplomatic missions or UN organizations, who possess a UIN are barred from applying for GST registration cancellation. This UIN is allocated to them primarily to claim tax refunds on their received supplies.

If a person or entity with GST registration wishes to cancel their GST registration, a cancellation request must be submitted to the GST Department in Form GST REG-16. After reviewing the application, if the GST Officer is satisfied, he or she will issue an order to terminate GST registration in Form GST REG-19.

The following are some of the top reasons for voluntary GST registration cancellation:

• Discontinuance or closure of a business.

• Transfer of business, amalgamation, merger, de-merger, lease, or other pertinent reasons.

• Change in the constitution of business, which results in a change of PAN.

• Turnover reduces below the threshold limit of GST registration.

• Death of the sole proprietor.

Voluntarily canceling a GST registration can save the business owner from the unnecessary hassles of filing GST returns each month and payment of penalty or late-filing fee.

An officer can initiate the cancellation of a GST registration under GST if the Officer has justification to cancel the GST registration. The proceedings for GST Cancellation by Officer will begin by issuing a show-cause notice in Form GST REG-17.

A GST officer can start the cancellation process if any of the following events occur.

• If a taxpayer has failed to file GST returns continuously.

• An assessee registered for GST voluntarily but did not start a business within six months.

• The registered taxpayer has broken one or more sections of the GST Act or its Rules.

• The GST registration is obtained through deception or malicious misrepresentation.

• To dodge tax or improperly claim the input tax credit, a taxpayer supplies goods or services without an invoice or produces an invoice without providing goods or services.

In case of cancellation by the GST Officer, the Officer would notify the taxpayer whose GST registration is liable to be terminated before cancellation. The taxpayer would then be given a reasonable opportunity to be heard before their GST registration is cancelled.

The notice to the taxpayer from GST Officer would be sent in Form GST REG-17 with specific reasons why the GST registration should be cancelled. The notice would also allow the taxpayer to respond to the notice and have a date and time if a hearing is scheduled.

If the taxpayer responds to the notice and the proper authority is satisfied with the response, he or she may dismiss the case and issue an order in Form GST REG-20. If he is not satisfied, he may issue a Form GST REG-19 order canceling the GST registration.

Should a sole proprietor pass away, the responsibility and authority to request the cancellation of the GST registration for the business fall upon the legal heirs.

Navigating the path to GST registration cancellation can be complex, but with PKRIDS, this journey becomes simplified and efficient. Here’s a step-by-step breakdown of our assistance on how to cancel GST registration:

Before diving into the cancellation process, it's imperative to ensure all outstanding GST returns are filed. If there are any lags in compliance, be it with GSTR-3B, GSTR-1, or the GST annual return, these need to be addressed first. Our team at PKRIDS will assist you in checking your GST return filing status and aid in completing any pending returns.

The actual process begins with the submission of the GST cancellation application using Form GST REG-16 on the official GST portal. The form requires detailed information, such as:

Under the Composition Scheme, businesses with goods turnover up to Rs. 1.5 crores may pay tax at a predetermined rate on their turnover. Service providers with a turnover of up to Rs. 50 lakh can opt for a similar benefit

Once the application is submitted, a GST Officer undertakes its review. Within 30 days from the date of application, the Officer is expected to issue a cancellation order in Form GST REG-19. The effective date of this cancellation is at the discretion of the Officer, who then informs the taxpayer. In this way, the problem of how to close GST account comes to an end.

In some instances, the concerned Officer may reject the application for the following reasons.

The submitted application is incomplete

In the Transfer, merger, or amalgamation of business, the new entity has not registered with the tax authority before applying.

In such circumstances, the concerned Officer provides an intimation in writing to the applicant regarding the discrepancy's nature. The applicant must respond to the same within seven days of receipt of the letter. If the applicant fails to do the same, he or she may reject the application after providing him/her with an opportunity to be heard.

If you’re contemplating on how to close GST account, consulting with an PKRIDS GST Expert can be invaluable. Not only will we help in preparing and submitting the application, but we'll also keep a vigilant eye on its progress, promptly respond to any inquiries, and ensure the procedure reaches its completion smoothly after submission. With PKRIDS by your side, GST registration cancellation becomes a hassle-free endeavor.

Once GST registration is canceled, the person or entity must file a final GST return on Form GSTR-10 within three months of the cancellation date or the date of the cancellation order, whichever comes first.

This is done to make sure the taxpayer has no GST dues pending. This provision does not apply to input service distributors or non-resident taxpayers who must pay tax under Sections 10, 51, or 52.

If the final GST return is not filed in Form GSTR-10, the taxpayer will receive a notice in Form GSTR-3A requiring him or her to do so within 15 days after the notice's issuance.

If the taxpayer ignores the notice, steps will be made to determine the taxpayer's liability using the facts available to the concerned Officer. The assessment order will be canceled if the applicant files the return within 30 days of receiving the notice.

No. GST registrations cannot be cancelled without filing returns. Taxpayers must first complete the filing of GST returns. Then, the taxpayer must submit form GSTR-10 (also known as Final Return) to apply for cancellation of GST registration. The time window for cancellation is around 1-2 weeks.

The time required to cancel GST registration depends on the GST authorities and on the accuracy of the documentation submitted. Generally, it takes around 10 to 15 working days for the cancellation to be processed.

In order to cancel your GST registration, you need to submit the following documents to the relevant GST authorities:

• PAN card

• Aadhar card

• Details of the last return filed

• Tax Particulars

• Company Authority details

Yes. Any entity wishing to claim input tax credit can be registered voluntarily, even if not liable to be registered. After registration, voluntarily registered entities will also have to comply with regulations as applicable to a normal taxable person.

Yes. PAN is mandatory for normal taxpayers and casual taxable persons to be registered under GST. However, PAN is not mandatory for a non-resident taxable person for obtaining registration.

Once the GST certificate is granted, the registration is valid until it's surrendered or canceled, or suspended. Only GST certificates issued to non-resident taxable persons and casual taxable persons have a validity period.

No, an unregistered person without GSTIN cannot collect GST from customers or claim an input tax credit of GST paid.

After submission of the GST application with all the required documents, GSTIN is allotted within 7 working days.

Aggregate turnover is the aggregate value of all taxable supplies, exempt supplies, export of goods or services, or both and inter-State supplies of a person having the same PAN. Aggregate turnover does not include CGST, SGST, IGST, and GST cess.

GST certificate is provided by the Government only in soft-copy format. Once GSTIN is allotted, the GST certificate can be downloaded from the GST Portal at any time by the taxpayer.