GST Registration Cancellations

GST registration can be canceled by the registered entity/person, the legal heirs of the person(in case of death), and the GST officer. GST registration cancellation means the entity is not registered under GST and doesn’t have to file the GST returns.

After the GST registration cancellation, if the business is still running, it will be an offense under GST guidelines. The person or the entity has to pay a heavy penalty fee. It is advisable no to carry out the business after surrendering the GST registration, it can lead you to even jail.

Who all can cancel the GST registration?

Before the registration cancellation, the taxpayer will receive a notice from the Officer’s end and within 7 working days of such notice, the registration will be canceled. If the taxpayer person is not responding on the time, the registration process will be canceled.

The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand canceled.

  • The registered person can’t conduct business or do any activity
  • Haven’t issue invoice or bill without supply of goods or violating the GST guidelines
  • If the GST registered person or entity has not filed GST returns for 6 months.
  • If, GST cancellation by the registered person
  • Closing of business
  • Transfer of business, merger, de-merger, amalgamation, or other reasons
  • Changing the policies of business might result in a change of PAN.
  • Turnover reduces below the minimum threshold of 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 to be filed before the GST registration cancellation

To cancel the GST registration taxpayer has to file the FORM GST REG 16. Details and forms to be filled for the successful GST cancellation procedure:

  • Details of inputs, semi-finished and finished goods in stock on which cancellation is applied.
  • Liability
  • Details of payment
  • Cancellation by a registered individual – FORM GST REG 16
  • Issue a show-cause notice for cancellation – Form GST REG 17
  • Reply to show cause notice – FORM GST REG 18
  • Application for the revoking cancellation – FORM GST REG 21
  • Order revoking cancellation – FORM GST REG 22.

Frequently Asked Questions

How much time it takes to register under GST?

After becoming liable to register GST, an entity should register GST within 30 days after achieving the liability. Casual taxable persons and non-resident taxpayers have to register under GST before initiating the business.

Can a business across the country have only one GST number?

No. A business operating in multiple states has to register a separate GST for each state to supply goods and services.

Can entities with VAT or service tax apply for new GST guidelines?

Yes, there is a whole procedure available in the GST portal for the migration of existing VAT. To obtain GST, one has to complete the GST migration mandatorily.

Can I register under GST voluntarily?

Even if you are not liable to register under GST, you can claim ITC registered voluntarily. After the registration, one has to comply with the regulation as a normal taxpayer.