Description
What is meant by cancellation of registration?
Cancellation of GST registration simply means that the taxpayer will not be a GST registered person anymore. He will not have to pay or collect GST.
Consequences of Cancellation
- The taxpayer will not pay GST anymore
- For certain businesses,??registration under GST is mandatory. If the GST registration is canceled and business is still continued, it will mean an?offence under GST?and?heavy penalties?will apply.
Who can cancel the GST registration?
Cancellation of GST registration can be done by-
*** Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.
Who All Cannot File the Cancellation of GST Registration?
- Taxpayers registered as Tax deductors / Tax collectors
- Taxpayers who have been allotted UIN
When to cancel your GST registration
Cancelling your GST registration will not cancel or close your business, it is just your GST registration that?s being cancelled. You don?t have to be GST registered, or continue to be GST registered, to be in business or trading.
- You must cancel your GST registration
If you stop your taxable activity and don?t intend to start a new taxable activity within the next 12 months you must cancel your registration within 21 days. - You should consider cancelling your GST registration
If your turnover for the next 12 months will be under Rs. 20,00,000, or you?ve been filing nil returns for some time, consider cancelling your GST registration. You can choose to stay GST registered if you like, but you?ll have to continue to meet all the requirements of being GST registered. - You can?t cancel your GST registration
If GST is built into your prices you can?t cancel your GST registration even if your annual turnover is under Rs. 20,00,000. For example, a taxi driver must be registered for GST regardless of their turnover because GST is built into the price they charge. - Interstate Supply
You cannot cancel your GST Registration if you deal in interstate supply, irrespective of turnover.
Completing your final GST return
Your final GST return must include all taxable goods and services from the beginning of the taxable period to the date of the GST cancellation.
Cancellation Forms
Here are the forms required for GST cancellation:
- Form GST REG 16 – Cancellation by a registered individual
- Form GST REG 17 – Issue show cause notice for cancellation
- Form GST REG 18 – Reply to show cause notice
- Form GST REG 19 – Order for dissolution
- Form GST REG 20 – To stop the cancellation proceedings
- Form GST REG 18 – Explanation form to stay proceedings
- Form GST REG 21 – Application for revoking cancellation
- Form GST REG 22 – Order revoking cancellation
Frequently Asked Questions:-
– How much time does it take for GST Cancellation after surrendering GST Certifcate?
Generally, it takes about one month for the GST cancellation after your surrender your GST registration certificate.
– When is GST Cancellation done by the GST Authority?
There are certain circumstances in which the government can cancel a person’s GST certificate-
- Non-filing of GST Returns for 6 months subsequently
- Non-payment of GST
- Violation of GST laws
- No business activity after GST registration in the 6 months subsequently.
- Non-filing of GST Returns for 3 months subsequently in case of the Composite scheme.
– How will I know if my GST registration is to be cancelled by order?
If your reply to the show cause notice is not found satisfactory, the GST department will send an order in FORM GST REG-19 stating the reason for GST cancellation by order.
– How will I know if my GST registration is likely to be cancelled?
If your GST registration is likely to be cancelled by order, the GST authority will send you a show cause notice to which you will have to give a suitable reply within 7 days.
– Can we revoke the GST Registration after GST Cancellation?
No. The GST registration can’t be restored after GST cancellation. If GST registration is surrendered by mistake, it will be cancelled for sure.
– How can I take GST registration in another state if I’m already registered under GST?
If you have a GST registration of one state and you wish to take GST registration in another state, you will have to opt for GST cancellation of your existing GST certificate and apply for fresh GST registration in another state.
– How will I know if my GST registration is saved from being cancelled?
If your reply to the show cause notice given by the GST department is found to be satisfactory, the GST department will send an order to you in FROM GST REG-20 regarding the same. The authority will not proceed for GST cancellation.
GST Cancellation Process:-
- Add service to cart
- Click on view cart
- Apply coupon (if have any)
- Proceed to checkout
- Fill the information & pay the amount.
- After receiving payment our executive will mail & call you to confirm your GST Cancellation.
- After confirmation, we start the cancellation process.
- We will inform you when your GST cancellation application is submitted.
- And finally, we will provide you Tracking No to track your cancellation application.
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