GST Cancellation
In India, GST cancellation refers to the process of voluntarily surrendering or canceling GST registration by a taxpayer. There could be various reasons for canceling GST registration, such as discontinuation of business operations, closure of business, change in business structure, or any other valid reason. Here’s an overview of the GST cancellation process in India
Documents Requires For GST Cancellation
- GST Certificate
- Reason of Cancelation
Packages
- GST Cancellation
- Filing of GST Form Reg 16
GST cancellation Process
In India, GST cancellation refers to the process of voluntarily surrendering or canceling GST registration by a taxpayer. There could be various reasons for canceling GST registration, such as discontinuation of business operations, closure of business, change in business structure, or any other valid reason. Here’s an overview of the GST cancellation process in India:
1. Determine Eligibility
Taxpayers who wish to cancel their GST registration should first ensure that they meet the eligibility criteria for cancellation. This includes ceasing all business activities and ensuring no liability under GST.
3. Provide Reasons for Cancellation
Taxpayers are required to provide reasons for canceling their GST registration. This could include cessation of business, closure of business operations, transfer of business ownership, or any other valid reason.
5. Upload Supporting Documents
Depending on the reason for cancellation, taxpayers may need to upload supporting documents. For example, if the reason for cancellation is the closure of business operations, documents such as closure certificate or cessation of business certificate may be required.
7. Verification by Tax Authorities
- After submission, the GST authorities will verify the application and the documents provided.
- If any discrepancies are found, the taxpayer may be asked to provide additional information or clarification.
9. Surrender of GST Certificate
Once the cancellation order is received, the taxpayer should surrender the GST registration certificate to the GST authorities.
2. File Application for Cancellation
- Log in to the GST portal (gst.gov.in) using your credentials.
- Navigate to the ‘Services’ > ‘Registration’ > ‘Application for Cancellation of Registration’ section.
- Fill out the application form for cancellation of GST registration (GST REG-16) with accurate details.
4. Settlement of Tax Liability
Before applying for cancellation, taxpayers must ensure that all outstanding tax liabilities, if any, are settled. Any pending tax dues, interest, or penalties should be cleared before initiating the cancellation process.
6. Submit Application
- After filling out the application form and uploading the necessary documents, review the details carefully.
- Once satisfied, submit the application for cancellation of GST registration.
8. Issue of Cancellation Order
- If the application is found to be in order, the GST authorities will issue an order for the cancellation of GST registration (GST REG-19).
- The effective date of cancellation will be mentioned in the cancellation order.
10. Closure of GSTIN
- After cancellation, the GST identification number (GSTIN) allotted to the taxpayer will be deactivated, and the taxpayer will no longer be required to file GST returns or comply with GST regulations.
It’s essential for taxpayers to follow the prescribed procedure for GST cancellation to avoid any compliance issues. Additionally, it’s advisable to consult with a tax professional or chartered accountant for guidance on the cancellation process and to ensure compliance with GST laws and regulations.
Frequently Asked Questions
How much time does it take for GST cancellation after surrendering GST certifcate?
Minimum 2 people are required to incorporate a private limited company
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 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 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.
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.
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.
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.
Do I need to physically present for the process?
No, You don’t need to be physically present for the process, E-StartupIndia is an online catering platform all you need is an internet connection in your phone/computer and the required documents with you and we can get the job done no matters even if you are present at the remotest location of India.
