What is meant by cancellation of registration?
Cancellation of GST registration means that taxpayer will not be a GST registered person anymore.
He will have to surrender his GST No. He will not have to pay / collect taxes.
The GST portal has provided amazingly easy procedure to cancel GST No. of taxpayer.
Reasons for cancellation of GST Registration
1. Changes in constitution of business leading to change in PAN.
2. Transfer of business on account of amalgamation, de-merger, sale or leased.
3. Discontinuance of Business/closure of business
4. Death of sole proprietor
5. Ceased to be liable to pay tax.
Consequences of Cancellation
Taxpayer will not pay / collect GST anymore. Also, he is free from formalities of GST return filing.
Who can cancel the GST registration?
The registration granted under GST can be cancelled for specified reasons. The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of death of registered person, the legal heirs can apply for cancellation.
- If the proper officer has reasons to believe that a person’s registration should get cancelled, then he will send a show cause notice to such person in FORM GST REG-17.
- Within 7 days from date of service of notice, person must reply in FORM REG-18 that why his registration should not be cancelled.
- If Proper Officer found satisfactory reply, then will drop the proceedings of cancellation of registration and then will pass order in Form GST REG-20
- If proper officer did not receive any reply or satisfactory reply, then can issue an order within 30 days from date of reply to show cause notice in Form GST REG-19.
Steps for filing of an application in Form GST REG-16
The GST registrant willing to cancel the GST registration is required to electronically file an application in Form GST REG-16. Steps for filing the same is narrated hereunder-
STEP 1 – Go to the site https://www.gst.gov.in/.
STEP 2 – Click on ‘Login’ and enter appropriate login credentials.
STEP 3 – Select the path – Services > Registration > Application for Cancellation of Registration.
STEP 4 – Cancellation application in Form GST REG-16 will be displayed and the same is divided into following three tabs- i.e. Basic Details, Cancellation Details and Verification
STEP 5 - Basic details:
Fill all the respective details as given below then click on “SAVE & CONTINUE”
STEP 6 - Cancellation details:
· Fill all the respective details as given below then click on “ SAVE & CONTINUE”
· Enter the date of cancellation of GST registration.
Fill all the respective details as given then click on “SAVE & CONTINUE”
STEP 8 – Enter the following details, if applicable-
- Particulars of tax payable in respect of inputs available on semi-finished and finished goods,
- Particulars of tax payable in respect of stocks of inputs, and
- Particulars of tax payable in respect of stock of capital goods.
STEP 9 – Enter details of tax paid.
STEP 10 – Tick the verification box.
STEP 11 – Select the name of authorized signatory from the drop-down list and enter the place.
STEP 12 – Submit the application using either DSC or EVC.
Forms used to cancel GST registration:
GST REG 16:
When taxpayer voluntarily applies for cancellation of registration then required to submit an application in Form GST REG-16. There is no consideration for the application other than taxpayer’s application which has elapsed one or more year after the GST registration.
GST REG 17:
The Proper Officer may initiate the process of cancellation of registration in Form GST REG-17. In this form, officer will provide the show cause/ cancellation notice to the taxpayer.
GST REG 18:
After receiving notice from Proper Officer, taxpayer or concerned party requires to submit a reply of the same within 7 days from date of issuance of notice.
GST REG 19:
The GST REG 19 form can be accessed by GST officer only for issuing a formal order for the cancellation of GST registration. The Proper Officer must send order of cancellation within 30 days from the date of application or reply in Form GST REG-18.
REVOCATION OF CANCELLATION OF REGISTRATION (SECTION 30)
Understanding Revocation of Cancellation of Registration Certificate
Revocation of cancellation of registration Certificate means that the decision to cancel the GST registration has been reversed and hence the registration is still valid.
When is revocation of cancellation of registration Certificate is applicable?
This is applicable only when the tax officer has cancelled the registration of a taxable person on his own motion. Such taxable person can apply to the officer for revocation of cancellation within thirty days from the date of the cancellation order.
Time Limit for Revocation
Any registered taxable person can apply for revocation of cancellation of GST registration within a period of 30 days from the date of service of order of cancellation of GST registration.
Application for Revocation
Registered person needs to file Form GST REG-21 for revocation of GST registration.