Cancellation of GST Registration

In India, GST registration and return filing can be complex and confusing. Many individuals need help understanding the registration process, filling out return forms, tax challans, e-way bills, and other GST-related forms.

This lack of knowledge often leads to mistakes in the forms. In case you accidentally registered for GST and need to cancel your registration, there is a provision that allows for cancellation.

The annual turnover of your company, including sales and unregistered purchases, must be below ₹20 lakhs. Cancelling your GST registration means you will no longer be considered a GST-enrolled person.

It's important to note that certain businesses are required to register under GST, and if you cancel your registration but continue operating, it will be considered an offense under GST, resulting in significant penalties. Let Filing Buddy guide you through the process to ensure compliance and avoid unnecessary complications.
 

To apply for cancellation of GST registration using Form GST REG-16, the applicant must provide the following information:

• Contact information, including address, mobile number, and email address.
• Reasons for cancellation.
• Desired date of cancellation.
• Details of the value and tax payable on the stock of inputs, inputs in semi-finished goods, inputs in finished goods, and the stock of capital goods or plant and machinery.
• If the current unit is merged, amalgamated, or transferred, details of the registration of the entity.
• Specifications of the latest return filed by the taxpayer, including the ARN (Application Reference Number) of the specific return.

• Non-filing of returns: A taxpayer who pays the Composition Levy and fails to file returns for three consecutive tax periods may face cancellation.
• Taxpayer's request: Cancellation can be initiated by the taxpayer in cases such as discontinuation of business or conversion of business.
• Tax officer's action: The tax officer can cancel registration if the business does not comply with the established parameters or fails to meet legal requirements.
• Obtained through deceit: Registration obtained through deceit, willful misstatement, or suppression of facts can lead to cancellation.
• Change in the constitution: If there is a change in the constitution of the business, such as a private limited company becoming a public limited company, cancellation may be necessary.
• Business discontinuation: Cancellation can occur if the business is discontinued.
• Anti-profiteering non-compliance: The tax officer may cancel registration if the person fails to comply with anti-profiteering requirements, such as not passing on the benefit of Input Tax Credit (ITC) to customers.

Step 1: In case an officer intends to cancel a person's GST registration, they will issue a show-cause notice in FORM GST REG-17.
 

Step 2: The person must respond within seven days of receiving the notice by submitting FORM REG-18, explaining why their registration should not be cancelled.
 

Step 3: If the officer finds the response satisfactory, the proceedings will be dropped, and an order will be issued in FORM GST REG-20.

Step 4: If the registration is likely to be cancelled, the concerned officer will issue an order in FORM GST REG-19.
 

Step 5: The officer will make a decision within 30 days from the date of receiving the response in FORM GST REG-24.

Revocation refers to the reversal or cancellation of a declaration or agreement. When we talk about the revocation of cancellation of registration, it means that the decision to cancel the registration has been reversed, and the registration remains valid.

This provision applies specifically in cases where a tax officer has revoked the registration of a taxable person as per their plan. In such situations, the taxable person has the option to request the officer for revocation of cancellation within thirty days from the date of the cancellation notice.