Who can cancel the GST Registration?
- By the request of Tax payer incase
- If His turnover is less than Rs 20lakhs,
- Other cases–
-The business has been discontinued
-The business has been transferred fully, amalgamated, demerged or otherwise disposed —the transferee (or the new company from amalgamation/ demerger) has to get registered. The transferor will cancel its registration if it ceases to exist.
-There is a change in the constitution of the business (For example- Private limited company has changed to a public limited company)
- Cancellation by tax officer
The registration can be cancelled, if the taxpayer-
- Does not conduct any business from the declared place of business OR
- Issues invoice or bill without supply of goods/services (i.e., in violation of the provisions) OR
- Violates the anti-profiteering provisions (for example, not passing on benefit of ITC to customers)
- Legal Heirs in case of death of tax payer
Procedure for GST Cancellation
When turnover is less than Rs20Lakh
Submit Electronic FORM GST REG-29 at the common portal, the proper officer shall, after conducting an enquiry as required will cancel the registration.
Note: Taxpayers who have not issued tax invoice can avail above service. If the taxpayer has issued any tax invoice then FORM GST REG-16 needs to be filed.
In Other Cases
All other cases must file an application for cancellation in FORM GST REG 16.
The legal heirs of the deceased taxpayer will follow the same procedure as below.
- Application for cancellation has to be made in FORM GST REG 16.
- The following details must be included in FORM GST REG 16-
- Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation of registration is applied
- Liability thereon
- Details of the payment
- The proper officer has to issue an order for cancellation in FORM GST REG-19 within 30 days from date of application. The cancellation will be effective from a date determined by the officer and he will notify the taxable person
Cancellation by tax officer
- If the proper officer has reasons to cancel the registration of a person then he will send a show cause notice to such person in FORM GST REG-17.
- The person must reply in FORM REG–18 within 7 days from date of service of notice why his registration should not be cancelled.
- If the reply is found to be satisfactory, the proper officer will drop the proceedings and pass an order in FORM GST REG –20.
- If the registration is liable to be cancelled, the proper officer will issue an order in FORM GST REG-19. The order will be sent within 30 days from the date of reply to the show cause.
Here is a list of forms required for GST cancellation process:
|Name of Form||Purpose of Form|
|Form GST REG 16||Cancellation of registration by registered person|
|Form GST REG 17||For GST Officer to issue show cause notice for cancelling registration|
|Form GST REG 18||For registered person to reply to show cause notice by registered person|
|Form GST REG 19||For GST Officer to pass order for cancellation of GST registration by|
|Form GST REG 20||For registered person to stop the cancellation proceedings based on explaination from Form GST REG 18|
|Form GST REG 21||For registered person to apply for revocation of cancellation|
|Form GST REG 22||For GST Officer to pass order for revoking cancellation of GST registration|
REFER NEXT ARTICLES FOR REVOCATION OF GST CANCELLATION
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