How to Cancel GST Registration in India?

A taxpayer has the option to cancel the GST registration. It implies that the taxpayer would no longer be covered under the purview of Goods and Service Tax. As we all know that GST has brought numerous indirect taxes and service charges under one single tax system. The act contains the rules, process and documents related to cancellation of GST registration.

The important questions that one needs to consider while taking the final decision is:

WHO CAN APPLY FOR CANCELLATION?

The following entities can initiate the GST cancellation process:

1. The taxpayer registered under GST;

2. A GST officer on his own accord;

3. In case of death, legal heirs of the taxpayer.

REASONS FOR CANCELLATION:

1. Any person who was registered under the existing tax regime, but now is not liable to take GST registration.

2. Discontinuation of business due to death, insolvency, amalgamation, transfer, dispose of or sale of business.

3. Change in constitution of business resulting in change in PAN.

4. Where the taxable person is no longer required to be registered under GST.

5. Anyone who has taken voluntary registration but did not commence business within 6 months from the date of registration.

6. Contravention of any of the provisions of the GST Act or the rules made there under.

7. Non-filing of GST return for a continuous period of 6 months by a registered taxpayer.

8. Fraudulent practices leading to wilful misstatements and suppression of facts.

PROCEDURE TO CANCEL GST REGISTRATION:

1. By the taxpayer himself:

Login to the GST portal using the username and password, in the services tab navigate to cancellation of GST registration page.

Now fill up Form GST REG-16 it requires various details like: GSTIN, name of business, address of the business (these will be prefilled), one needs to specify the reason for cancellation.
The procedure to cancel GST requires professional guidance as the form involves a few technical details regarding the invoices, stock balances and a few declarations.

The final step being submitting the application using digital signatures or through EVC.

1. Cancellation by the officer on his own accord:

When a show cause notice has been sent by the proper officer in the form GST REG-17

On receipt of the SCN the taxpayer is required to file an appropriate reply within 7 days from the receipt of the notice.

If the taxpayer is able to provide a satisfactory reply to the officer then the proper officer will issue an order in form GST REG- 19.

The officer is liable to issue an order within 30days from the date of reply by the taxpayer.

REVOCATION OF CANCELLATION:

Revocation is applicable only when the officer has cancelled GST registration on his own accord, in such a scenario the registered tax payer has the option to apply for revocation of procedure to cancel GST registration within 30 days from the date of the cancellation.

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