Cancellation of GST Registration
Need help with cancellation of GST registration? Our expert team makes the process easy, fast, and hassle-free. Avoid penalties and complete all formalities smoothly. Contact us today for professional assistance and get your GST registration cancelled without any stress!
Apply for GST Cancellation
- Application for GST Registration Cancellation
- Final Return filing
- All India Service
- Easy Onlie Process
- 24*7 Hours Customer Support
Cancellation of GST Registration: A Complete Guide
Goods and Services Tax (GST) is a major part of India’s taxation system. Any business registered under GST is required to follow certain rules, file returns regularly, and pay taxes on time. However, there are times when a business may no longer need to be registered under GST. In such cases, the process of cancellation of GST registration becomes important.
In this article, we will walk you through the meaning, reasons, process, consequences, and frequently asked questions related to cancellation of GST registration in simple terms.
What is Cancellation of GST Registration?
The cancellation of GST registration means the deactivation of a GSTIN of a registered person. Once the GST registration is cancelled, the taxpayer is no longer required to collect GST or file GST returns.
Cancellation can be initiated by:
- The taxpayer (voluntary cancellation)
- The GST officer (suo-moto cancellation)
- Legal heirs (in case of the taxpayer’s death)
Why Cancel GST Registration?
There are several reasons for cancellation of GST registration. Some of the most common ones include:
- Closure of Business
If a business is shutting down permanently, there is no need to continue the GST registration. - Transfer of Business
If the business is sold or transferred to another person, the GST registration can be cancelled. - Change in Business Structure
If a proprietorship is converted into a partnership or company, the old GSTIN should be cancelled and a new registration should be obtained. - Turnover Falls Below Threshold
If the annual turnover falls below the limit required for GST registration, the taxpayer can apply for cancellation. - Voluntary Registration Withdrawal
A person who had taken voluntary registration can cancel it after one year from the date of registration.
Fees for Cancellation of GST
- Application for GST Registration Cancellation
- Final Return filing
Documents Required For Cancellation of GST
The following documents are required for GST Registration Cancellation:
- User ID and Password of GST Registration
- A copy of the GST registration certificate.
- A copy of the PAN card of the registered person.
- Details of the tax paid on such inputs, semi-finished, finished goods held in stock on the date of cancellation.
- Application for Cancellation of Registration in Form GST REG-16.
Detail of Last Return filled by Taxpayer
Who Can Apply for GST Cancellation?
The following persons are eligible to apply for cancellation of GST registration:
- Regular taxpayers who want to discontinue their business
- Composition scheme holders under GST
- Voluntarily registered taxpayers after 1 year of registration
- Legal heirs in case of the death of the sole proprietor
When Can a GST Officer Cancel the Registration?
A GST officer can cancel a registration on his own if:
- The taxpayer does not file returns for six months or more
- The taxpayer takes registration through fraud
- The taxpayer issues invoices without supplying goods/services
- The taxpayer violates GST rules
In such cases, the officer sends a show-cause notice and asks for clarification. If the taxpayer fails to respond, cancellation is carried out.
Final Return (GSTR-10)
Filing a final return is compulsory after cancellation of GST registration. This return gives details of:
- Input held in stock
- Input in semi-finished and finished goods
- Capital goods held on cancellation date
- Tax payable on such stock
You must file this return within 3 months from the date of cancellation.
Suo-moto Cancellation by GST Officer
As mentioned earlier, a GST officer can cancel a registration without the taxpayer’s request. This is known as suo-moto cancellation.
Before cancelling, the officer issues a show-cause notice in Form GST REG-17.
The taxpayer must reply within 7 working days using Form GST REG-18. If the officer is satisfied, the proceedings are dropped. If not, the officer will pass an order of cancellation.
Revocation of GST Cancellation
If your GST registration was cancelled by the officer (not voluntarily), you can apply for revocation of cancellation. This is like requesting to restore your GSTIN.
Conditions for Revocation
- Must apply within 30 days from the cancellation order
- Must file all pending returns and pay all dues
- Applicable only for cancellations done by the officer
Use Form GST REG-21 for this process. The officer may approve or reject the request after reviewing your case.
Cancel Your GST Registration Today
Quick, easy guide on how to cancel GST registration—get expert help and stay compliant.
Frequently Asked Questions (FAQs)
1. What is cancellation of GST registration?
Cancellation of GST registration means officially deactivating a business’s GST number (GSTIN). After cancellation, the business is no longer required to collect GST or file GST returns.
2. Who can apply for cancellation of GST registration?
The registered taxpayer can apply for cancellation if they close their business, transfer it, change its structure, or if their turnover falls below the prescribed limit. Also, legal heirs can apply if the taxpayer has died.
3. Can the GST department cancel registration on its own?
Yes, the GST officer can cancel a registration if the taxpayer fails to comply with rules, such as not filing returns for 6 months, issuing fake invoices, or registering fraudulently. The officer must issue a notice and give the taxpayer a chance to respond.
4. How do I apply for voluntary cancellation of GST registration?
You can apply online on the GST portal by submitting Form GST REG-16 with the reason for cancellation and details of stock and liabilities. The application must be verified digitally.
5. How long does the cancellation process take?
Typically, the GST officer takes about 30 days from the application date to review and approve or reject the cancellation request.
6. Do I have to file any returns after cancellation?
Yes, you must file a final return called GSTR-10 within 3 months from the date of cancellation. This return details the stock and tax liabilities at the time of cancellation.
7. What if I don’t file the final return after cancellation?
Not filing the final return can lead to penalties and legal action. It is important to file GSTR-10 on time to avoid trouble.
8. Can I get my GST registration back after cancellation?
If the cancellation was done by the officer, you can apply for revocation within 30 days by submitting Form GST REG-21 and paying all pending dues. If it was voluntary, you must reapply for fresh registration if needed.
9. Is there any fee for cancellation of GST registration?
No fee is charged for applying for cancellation of GST registration on the GST portal.
10. What happens to my input tax credit after cancellation?
You cannot claim input tax credit after cancellation. You must pay GST on any stock or capital goods held on the date of cancellation.
