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.
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.
When the threshold limit of the registered business or entity crosses Rs 40 lakhs.
When a non-resident supplies goods in the GST applicable area occasionally and has no fixed business place.
A person who supplies goods occasionally where GST is applicable but doesn’t have a fixed business place.
A taxpayer or business has a turnover less than Rs.1.5 crores. Also small businesses can get rid of tedious GST formalities.
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:
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.
No. A business operating in multiple states has to register a separate GST for each state to supply goods and services.
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.
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.