GST Registration cancellation
GST registration cancellation is the process of revoking the registration of a taxpayer under the Goods and Services Tax (GST) Act. It means that the registered taxpayer will no longer be registered and will not have to pay GST any longer. It is important to know about GST registration cancellation because it can be initiated voluntarily by the taxpayer or by the tax officer due to various reasons such as non-filing of tax returns, business being dormant, non-compliance under GST, GST rules not applying to the business, business discontinuation, transfer or merger, and fraudulent registration. Understanding the process and reasons can help taxpayers avoid penalties and comply with the GST Act.
Complete the filing of GST returns.
Submit form GSTR-10 (Final Return) to apply for cancellation of GST registration.
Enter the date from which registration is to be cancelled.
Provide the GSTIN of the transferee entity under the Details for Transfer, Merger or Change in Constitution section.
System will validate the same, and based upon its Legal Name of Business, will auto-populate the Trade Name.
Enter the reason for cancellation.
Provide clarification and return filing.
Wait for the GST officer to cancel the registration if the business is non-compliant under GST.
Once GST registration is cancelled, the person or entity is no longer a GST-registered person and will not have to pay or collect GST or claim the input tax credit and accordingly, need not file GST returns.
Businessfiling can help with the process by providing assistance with filing GST returns, submitting form GSTR-10, and providing clarification and return filing
The reasons for the cancellation of GST registration are:
Non-filing of tax returns.
Business is dormant or does not have the necessary business turnover.
Business is non-compliant under GST.
GST rules don't apply to the business or the business is shutting down.
Business gets discontinued for some reason or is transferred entirely due to the death of the sole proprietor or business owner, or the merger with other businesses.
Person is not liable to be registered under GST Act because the individual is already registered under existing law
If the business is no longer liable to GST, for instance, if the business has taken registration for the sake of inter-state trade, but later the government relaxed the norms that GST registration is not mandatory for inter-state trade.
If the registration has been obtained by means of fraud, willful misstatement, or suppression of facts.
If the registered company hasn't generated any business in the last 6 months after GST registration.
Frequently Asked Question
The time limit for cancellation of GST registration in India is 30 days from the date of occurrence of the event that led to the cancellation. However, if the registration was obtained by means of fraud or willful misstatement, there is no time limit for cancellation.
When we cancel our GST registration, we must wait for a certain period of time before registering again. It is important to ensure that all outstanding GST obligations are fulfilled before re-registering.
If the turnover exceeds 20 lakhs per annum, then it is mandatory to register for GST. However, if the turnover falls below this threshold, businesses have the option to cancel their GST registration.
If you wish to cancel your GST registration, you must submit an application to the GST department. The application should include a valid reason for cancellation, such as discontinuing business operations or falling below the threshold for mandatory registration.
To check the GST registration cancellation status, one can visit the official GST portal and log in with their credentials. Once logged in, navigate to the “Services” tab and select “Cancellation of Registration.” From there, the status of the cancellation request can be viewed. If there are any issues or concerns, it is recommended to contact the GST helpdesk for further assistance.
