Reason of cancellation of GST registration

1. Discontinuance of business or closer of business.

2. Taxable person ceases to be liable to pay tax.

3. Transfer of business on account of amalgamation, merger, De-merger, sale, leased or otherwise.

4. Change in constitution of business leading to change in PAN.

5. Registered voluntarily, but did not commence any business within specified time.

6. Taxable person no longer liable to be registered under GST Act.

7. If your turnover is not more than 20 lakh and you have registered on the portal, but you do not want to file the return.

Cancellation by a GST officer

The GST registration of a person or business can be cancelled by a proper GST officer in one of the following cases:

If the registered person has violated any of GST provisions or laws.

A composition registered person has not filed tax returns for three consecutive quarters.

A normal registered person who has not filed returns consecutively for six months. A voluntarily registered person who has not commenced any business in the six months from the registration date.

If the registration is obtained by fraud methods, the proper officer has the right to cancel the registration with retrospective effect.

Types of Cancellation of Registration

While a taxpayer can opt to cancel registration himself, a Proper Officer can is also authorised to do so. The provisions related to this are covered in section 29(1) of CGST Act 2017.

Cancellation of GST registration by a registered person (or his legal heirs) Cancellation of GST registration by the Proper Officer

Consequence of cancellation

Section 29(3) provides that the cancellation of registration of shall not affect the liability of the person to pay the tax and other dues under the Act or to discharges any obligation for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation

Section 29(5) provides that every registered person, whose registration is cancelled shall pay an amount, by way of debit in the electronic cash ledger or electronic cash ledger equivalent to the prescribed.

In case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the tax transaction value of such capital goods or plant and machinery under section 15, whichever is higher

The following can file for cancellation of GST registration:

1. Existing Taxpayer

2. Migrated Taxpayer whose application for enrolment has been approved

3. Migrated Taxpayer who has not filed any other form after filing of application for enrolment

Procedure for Cancellation of Registration

1. Visit the URL: https://www.gst.gov.in.

2. Login to the GST Portal with your user-ID and password.

3. Navigate to the Services > Registration > Application for Cancellation of Registration option.

4. The form – Application for Cancellation of Registration contains three tabs. Ensure that the Basic Details tab is selected by default.

5. Either fill your Address for Future Correspondence manually, or check the option of Address same as above to copy the same address as in the Address of Principal Place of Business field.

6. Click the SAVE & CONTINUE button.

7. Select a suitable reason from the Reason for Cancellation drop-down list.

Notes: The following five reasons are available for selection:

• Change in constitution of business leading to change in PAN
• Ceased to be liable to pay tax
• Discontinuance of business / Closure of business
• Others
• Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise

tries will be made.

8. Click the SAVE & CONTINUE button.

9. Check the Verification statement box to declare that the information given in this form is true and correct, and that nothing has been concealed therefrom.

10. Select the name of the authorised signatory from the Name of Authorized Signatory drop-down.

11. Enter the Place of making this declaration.

12. Sign the form by using either your Digital Signature Certificate (DSC), or the EVC option.032

13. Enter the OTP.

Show Less