GST Registration Cancellation
| Market Price: | |
|---|---|
| Filing CA Price: | ₹2500/- excl. GST |
| ₹2950/- incl. GST | |
| You Save: | ₹1000/- (29%) |
| Complete By: | within 7 days from payment |
What is meant by cancellation of registration?
Cancellation of GST registration simply means that the taxpayer will not be a GST registered person any more. He will not have to pay or collect GST.
Consequences of Cancellation
- The taxpayer will not pay GST anymore
- For certain businesses, if the GST registration is cancelled and business is still continued, it will mean an offence under GST and heavy penalties will apply.
Cancellation when Turnover is less than 20 lakhs
Every person who was registered under old laws had to mandatorily migrate to GST. Many such persons are not liable to be registered under GST.
For example, the threshold under VAT in most states was 5 lakhs whereas it is 20 lakhs under GST. However, do make sure you are not making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.
Such a taxpayer can submit an application electronically in FORM GST REG-29 at the common portal.
The proper officer shall, after conducting an enquiry as required will cancel the registration.
Cancellation by taxpayer in other cases
Why does a taxpayer wish to cancel his registration?
- 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)
Forms for cancellation
All those who cannot follow the above method 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
Why will the officer cancel registration?
The registration can be cancelled, if the taxpayer-
(a) Does not conduct any business from the declared place of business OR
(b) Issues invoice or bill without supply of goods/services (i.e., in violation of the provisions) OR
(C) violates the anti-profiteering provisions (for example, not passing on benefit of ITC to customers)
Procedure
- 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.
Revocation of cancellation of registration
What is revocation of cancellation?
Revocation means the official cancellation of a decision or promise. Revocation of cancellation of registration means that the decision to cancel the registration has been reversed and the registration is still valid.
When is revocation of cancellation applicable?
This is applicable only when the tax officer has cancelled the registration of a taxable person on his own motion. Such taxable person can apply to the officer for revocation of cancellation within thirty days from the date of the cancellation order.
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