GST Cancellation
Introduction
A registered person may apply for cancellation of GST registration due to various reasons such as business closure; transfer of ownership due to merger, demerger etc; change in organisation structure; sole proprietor’s death; or any other reason.
The officer may cancel the registration where he has reasons to believe that a registered person has contravened the GST provisions; took registration by means of fraud, wilful misstatement etc; taken voluntary registration but has not commenced business within 6 months from the date of registration; or any other reason. However, the officer cannot cancel the GST registration without giving an opportunity of being heard to the registered person.
Key points to note about GST Cancellation
- No more requirement to collect GST or pay GST or claim ITC.
- It does not affect the liability to pay tax and other dues under this Act for any period prior to the date of cancellation.
A registered person can file an online application at GST portal for cancellation of GST registration in FORM GST REG-16. This will include details of inputs/capital goods held in stock on the date of the cancellation of registration. In this respect, the applicant shall pay tax or reverse the ITC claimed thereon, whichever is higher. The application is submitted along with all the relevant documents. The officer will check the application and issue an order within 30 days from the date of application.
Every registered person whose registration has been cancelled shall furnish a final return in form GSTR-10 within 3 months of the date of cancellation or date of order of cancellation, whichever is later.
Procedure to file online Cancellation
- Login at GST portal with GST login credentials
- Go to services tab > Application for Cancellation of Registration
- Thereafter, punch all the details as required in form GST REG-16 along with necessary documents.
- Now submit the application.
Steps after submission
- Post submission, the GST officer will verify the same and issue an order of cancellation within 30 days.
- If the officer is satisfied with the documents and information provided, the GST registration will be cancelled, and the cancellation order will be issued.
- In case the officer is not satisfied, they may ask for additional documents and the applicant has to submit those documents.
- If the officer is not satisfied with the latest documents as well, they may reject the application and provide reasons for the same.