Cancellation of GST Registration


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    Cancellation Of GST Registration

    The registered organization or person may make cancellation of a GST registration, the person's legal heirs (if the person has passed away), or the GST officer. Cancellation of GST registration results in the entity no longer being subject to the requirements of the GST and frees them from the need to submit GST returns.

    If the firm continues to operate after the termination of the GST registration, doing so would be considered a violation of the GST standards. The individual or business in question must make a significant financial penalty payment. It is strongly recommended that you do not go on with the company after handing in your GST registration; doing so might end up in prison.

    Cancellation of GST Registration

    Who Among Them Has The Authority To Terminate The GST Registration?

    A notification will be sent to the taxpayer from the Officer's end before the cancellation of the registration, and the cancellation of the registration will take place within seven working days of the receipt of such notice. The registration procedure will be terminated if the taxable individual does not answer within the allotted period.

    Within the allotted amount of time, the person who is registered may provide a response to the show reason notice; otherwise, the GST registration will be terminated.

    • The individual who is registered cannot engage in any business or activity.
    • Have not issued an invoice or bill since doing so would violate the GST standards and imply that products have been supplied.
    • If the GST-registered person or company has not submitted any GST returns in the last six months.
    • If the registered individual cancels their GST.
    • Reasons such as the transfer of a firm, a merger, de-merger, or amalgamation, as well as other possibilities.
    • At the end of the business day.
    • If the company's policies are modified, the PAN could shift directly.
    • The annual turnover falls below the mandatory bare minimum required for GST registration.

    Types of GST Registration

    Normal scheme

    When the threshold limit of the registered business or entity crosses Rs 40 lakhs.

    Non-resident taxable person

    When a non-resident supplies goods in the GST applicable area occasionally and has no fixed business place.

    Casual taxable person

    A person who supplies goods occasionally where GST is applicable but doesn’t have a fixed business place.

    Composition scheme

    A taxpayer or business has a turnover less than Rs.1.5 crores. Also small businesses can get rid of tedious GST formalities.

    Forms Required to Submit Before The Cancellation Of GST Registration

    The taxpayer is required to complete Form GST REG 16 to terminate their GST registration. Specifics and paperwork that need to be completed for a successful GST cancellation process are as follows:

    • Specifications of the inputs, semi-finished items, and completed goods already in stock are subject to cancellation.
    • Liability
    • The specifics of the payout
    • FORM GST REG 16: Cancellation by a registered person.
    • Show-cause notice for cancellation: Form GST REG 17.
    • Application for the revoking cancellation using Form GST REG 18.
    • Reply to the show cause notice using Form GST REG 21.
    • Order revoking cancellation using Form GST REG 22.

    FAQs(Frequently Asked Questions)

    If there is an amalgamation, merger, or other change in the firm structure, what are the prerequisites for the cancellation of the registration?

     In the event of an amalgamation, a merger, or a change in the constitution of a business, the new entity is required to be registered with the tax authority and must have a valid GSTIN at the time of filing for cancellation of registration by the old combined, merged, or transferred entity. This would be the case even if the ancient entity were transferred. 

    When must taxpayers submit their requests to terminate their GST registration, and within what time frame must they do so?

    In the instance of voluntary cancellation, taxpayers must submit for the cancellation of their GST registration within thirty days, beginning on the date from which the registration is due to be cancelled.

    After submitting an application to cancel my GST registration, may I afterwards submit an adjustment request for the core fields?

    No. After you have sent in the application for cancellation of registration and an ARN has been created, you will no longer be able to apply for revision of Core fields. This restriction will go into effect immediately.

    After I have applied to cancel my GST registration, would I be able to submit an adjustment request for any non-core fields?

    Yes. You can apply for adjustment of Non-Core fields once you have filed the application for cancellation of registration and an ARN has been created.