Cancellation of GST registration means that the taxpayer will not be a GST registered person anymore and neither he has to collect GST on sales nor to file any GST return and Deposit the taxes to Govt . A person can cancel its GST Registration voluntarily if he believes that the registration is no longer required by the firm and the turnover limit of firm is below the threshold limit. Other than voluntarily cancellation, cancellation can also be done by the order of department in case of violation of rules made in regard GST Act 2017.
There can be various reasons for cancellation of GST Registration and it is important to comply with all the due taxes and returns before filing for the cancellation of GST Registration.
Legal Window has a team of experts who will help you with the cancellation of GST Regostration just by following certain steps by providing the best assistance, timely delivery and guaranteeing the highest customer satisfaction You may get in touch with our team on 072407-51000 or email email@example.com for GST Cancellation .
Who can cancel the GST Registration
1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team which will enable us to know the case of cancellation of GST Registration.
2. Document Processing
At the second step you will be required to produce the documents in accordance with the questionnaire filled based upon which case will be dealt so that we can arrange them as per the requirement and for further processing.
3. Filing of Application for GST Registration Cancellation
After arranging the documents and all the data we will begin with the filing of application of GST Registration Cancellation.
4. Examining of Application by Department
The department will examine the application and issue the order for cancellation of GST Registration, if all the details are found appropriate.
5. Filing of GSTR-10
After approval GSTR-10 will be filed within 3 months of date of cancellation or the date of order of cancellation.
Under Section 29 of the CGST Act, a GST registration cancellation can be initiated by the person registered under GST in the following circumstances:
- Discontinuance or closure of a business.
- Transfer of business, amalgamation, merger, de-merger, lease or other pertinent reasons.
- Change in the constitution of business, which results in a change of PAN.
- Turnover reduces below the threshold limit for GST registration.
- Death of the sole proprietor.
- Any other reason, the likes of which must be proved in the application.
GSTR-10: GSTR-10 is a final return required to be filled within the 3 months of date of cancellation or the date of order of cancellation whichever is later. This is done to ensure that the taxpayer is devoid of liabilities. Input Service Distributors or non-resident taxpayers are exempted from this provision.
If the final GST return is not filed in Form GSTR-10, the taxpayer will be issued a notice in GSTR-3A, prompting him/her to do the same within 15 days of the issue of such notice. If the taxpayer fails to comply with the notice, initiatives will be taken to assess the liability of the taxpayer based on the information available with the concerned Officer. The assessing order will be withdrawn if the applicant files the return within 30 days of the issue of notice.
Cancellation by department order
- The taxable person under GST does not conduct any business from the declared place of business; or
- Issues invoice or bill without supply of goods or services in violation of the GST Act and/or GST rules.
- If a person having GST registration has continuously not filed GST returns for six months.
Before the cancellation of registration, the Officer would issue a notice to such person whose GST registration is liable to be cancelled, requiring show cause within seven working days from the date of service of such notice. The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand cancelled.
Difference between Annual Return and Final return
Taxpayer gets usually confused between Annual and Final return. Annual Return is GSTR-9 with is to be filled by taxpayer having the annual turnover more than 2 crores before 31st December of subsequent year. But final return is GSTR-10 which is required to be filled when taxpayer no longer wishes to remain registered under GST Act and wants to cancel its GST Registration.
FAQ's on Cancellation of GST Registration
Every registered person who wants to cancel its GST registration will pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods.
No, without filling GST return and without paying tax dues you cannot proceed further for GST cancellation.
If the proper officer is satisfied by your explanation 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. Reasons for revocation of cancellation of registration must be recorded in writing.
The excess GST paid can be claimed as a refund within 2 years from the date of payment.
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.
If a person registered under GST composition tax scheme fails to furnish returns for a continuous period of 3 months, his GST number gets cancelled on account of such a failure.
No, if return of one month is not filled supplier cannot file the return of subsequent month.
It takes 30 days from the date of receipt of the application.
If the taxpayer, who has surrendered the GST registration or whose registration has been cancelled, fails to file the Form GSTR-10 within 3 months, then a show cause notice will be sent to that registered person and a period of 15 days will be given to file the return along with other required documents.
GSTR 10 is required to be filed only by the persons whose registration under GST has been cancelled or surrendered. The regular taxpayer registered under GST is not required to file this return.