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.

• 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.

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.