HOW TO CANCEL YOUR GST REGISTRATION ONLINE

EASY STEPS TO CANCEL YOUR GST REGISTRATION ONLINE

GST cancellation process in India is crafted to be very easy with the online Indian government GST Portal focused on step by step process to make sure everyone can complete the process for taxpayers easily.

What is meant by the cancellation of registration? When we say the cancellation of GST registration, it simply means that after the process is complete, the taxpayer will not be a GST registered person any more. He will not have to pay or collect GST.

If you are wondering, I want to cancel my GST registration or how to surrender GST number in India or how to cancel GST number, well; here is the GST cancellation procedure for you.

Consequences of Cancellation

After the GST surrender process, a taxpayer will not pay GST anymore which can be a consequence as for certain businesses, registration under GST are mandatory. So, it is not an apt situation when the GST registration is cancelled and business is continued, it will mean an offence under GST and heavy penalties will apply.

Who can cancel the GST registration or complete the GST cancellation process online for you?

Cancellation of GST registration can be done by majorly three parties, firstly the taxpayer themselves, secondly the tax officer, and thirdly the legal heirs, in case of the taxpayer.

The request of cancellation of the surrender of GST number can be done by the taxpayer i.e the first case can be done by:

  • A taxpayer with turnover is less than 20 Lakhs
  • Other cases when an application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.

In different cases, the process may differ, so take a look at all of these

CANCELLATION WHEN TURNOVER IS LESS THAN 20 LAKHS

Although everyone who was registered under old laws had to mandatorily migrate to GST, many such persons are not liable to be registered under GST. For example like the threshold under VAT in most states was 5 lakhs whereas it is 20 lakhs under GST. However, one must make sure that if they are making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.

These taxpayers can submit an application electronically in FORM GST REG-29 at the common portal.

Here are the steps of cancelling on GST Portal-

Step 1: Log in to the GST Portal and click the Cancellation of Provisional Registration

Step 2: The Cancellation page will open and your GSTIN and name of the business will show automatically. Here you are required to give a reason for cancellation and you will be asked if you have issued any tax invoices during the month.

Step 3: What you need to do next is simply fill up the details of authorized signatories, place and finally, sign off with EVC with you are a proprietorship or a partnership. LLPs & Companies must mandatorily sign with DSC.

Note: Taxpayers who have not issued tax invoice can avail above service. If the taxpayer has issued any tax invoice then FORM GST REG-16 needs to be filed.

CANCELLATION BY TAXPAYER IN OTHER CASES

Apart from the taxpayers who can follow the above process, they must apply for cancellation in FORM GST REG 16 and also the legal heirs of the deceased taxpayer will follow the same procedure as below.

Step 1: Starting with the application for cancellation, which has to be made in FORM GST REG 16 with following details must be included including:

  • Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation of registration is applied
  • Liability thereon
  • Details of the payment

Step 2: And after that, a proper officer has to issue an order for cancellation in FORM GST REG-19 within 30 days from date of application.

Step 3: The cancellation will be effective from a date determined by the officer and he will notify the taxable person.

CANCELLATION BY TAX OFFICER

This option can be opted for registration to be cancelled if the taxpayer-

(a) Does not conduct any business from the declared place of business OR

(b) Issues invoice or bill without supply of goods/services (i.e., in violation of the provisions) OR

(c) Violates the anti-profiteering provisions (for example, not passing on the benefit of ITC to customers)

Procedure

Step 1: If the proper officer has reasons to cancel the registration of a person then he will send a show-cause notice to such person in FORM GST REG-17.

Step 2: The person must reply in FORM REG–18 within 7 days from the date of service of notice why his registration should not be cancelled.

Step 3: (i) If the reply is found to be satisfactory, the proper officer will drop the proceedings and pass an order in FORM GST REG –20.

(ii) If the registration is liable to be cancelled, the proper officer will issue an order in FORM GST REG-19. The order will be sent within 30 days from the date of reply to the show cause.

REVOCATION OF CANCELLATION OF REGISTRATION OR HOW TO REVOKE GST CANCELLATION?

Revocation of cancellation of registration means that the decision to cancel the registration has been reversed and the registration is still valid and when This is applicable only when the tax officer has cancelled the registration of a taxable person on his motion. Such taxable person can apply to the officer for revocation of cancellation within thirty days from the date of the cancellation order.

While the application for revocation cannot be filed if the registration has been cancelled because of the failure to file returns and it should be taken into consideration. Such returns must be furnished first along with payment of all dues amounts of tax, interest & penalty.

PROCEDURE

Step 1: A registered person can start with submitting an application for revocation of cancellation, in FORM GST REG-21, if his registration has been cancelled suo moto by the proper officer within 30 days from the date of service of the cancellation order at the Common Portal.

Step 2: If the proper officer is satisfied, then he can revoke the cancellation of registration by an order in FORM GST REG-22 within 30 days from the date of receipt of the application with the reasons for revocation of cancellation of registration recorded in writing.

Step 3: The proper officer can reject the application for revocation by an order in FORM GST REG-05 and communicate the same to the applicant.

Step 4: Before rejecting, the proper officer must issue a show-cause notice in FORM GST REG–23 for the applicant to show why the application should not be rejected. The applicant must reply in FORM GST REG-24 within 7 working days from the date of the service of notice.

Step 5: The proper officer will decide within 30 days from the date of receipt of clarification from the applicant in FORM GST REG-24.

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