You can cancel your GST registration if the GST rules don’t apply to you or you are shutting down your business or profession, or the tax officer calls for cancellation. Are you a business owner in India looking to cancel your GST registration? Contact our Tax Experts to learn more about GST Cancellation.
Cancellation of GST registration simply means that the taxpayer will not be a GST registered person anymore. He will not have to pay or collect GST or claim the input tax credit and accordingly, need not file GST returns.
Once GST Registration will get cancelled following will be consequences
GST authorities may initiate the termination of a taxpayer’s GST registration for a variety of reasons. Among the most common explanations are:
The following documents are required for GST Cancellation:
Detail of Last Return filled by Taxpayer
Before you can cancel your GST registration, you will need to gather the following documents:
Log in to the GST portal using your GST login credentials.
Once you are logged in, navigate to the GST registration cancellation form.
Fill out the GST registration cancellation form, providing all the necessary information, including your reason for cancelling your GST registration.
Once you have filled out the form, submit it electronically.
You will receive a confirmation of your GST registration cancellation via email or SMS. The cancellation will take effect from the date you specified in the form.
A GST Final Return is a return that must be made by a registered individual when their GST registration is cancelled. A registered individual who cancels their GST registration must file a final return within three months of the cancellation date. This return will include information on all supplies made and received during the registration period, as well as the tax liability and input tax credit claimed.
The GST Final Return is a summary of all transactions that occurred during the registration period, including information on all taxable supplies, exempt supplies, and non-GST supplies. It also includes information on all input tax credits claimed as well as any outstanding tax liabilities. Even if no transactions occurred throughout the reporting period, the Final Return must be filed.
Once the Final Return is filed, the GST officer will review it and may request further information if necessary. If the officer is pleased with the return, he will issue a Form GST REG-06 acknowledgement. The GST Final Return acts as the registered person’s account closure with the GST administration.
It is vital to note that if a registered person fails to file the GST Final Return within the stipulated time limit, they would be fined Rs. 100 per day, up to a maximum of 0.25% of their sales in the state or union territory. Therefore,
Before proceeding with GST cancellation in India, consider the following:
GST cancellation refers to the process where a registered taxpayer’s Goods and Services Tax (GST) registration is canceled. This may happen voluntarily by the taxpayer or due to compliance issues or violations under GST law. Once canceled, the taxpayer is no longer required to comply with GST regulations.
GST registration can be canceled under several circumstances, including:
Yes, businesses can voluntarily apply for GST cancellation. This is commonly done when the business discontinues its operations or if it is no longer required to maintain GST registration due to a reduction in turnover.
The processing time for GST cancellation can take up to 30 days from the date of application submission. During this time, the GST department may ask for additional documents or clarification.
Generally, the following documents may be required for GST cancellation:
After GST registration is canceled:
If the final return (GSTR-10) is not filed within the prescribed 30 days after cancellation, the GST department may impose a penalty. Non-compliance could also lead to further legal action.
If you are eligible for a refund of unutilized ITC after GST cancellation, you must file the final return (GSTR-10) and apply for a refund through the GST portal. You will need to submit documents proving the balance ITC.
Once your GST registration is canceled, you are no longer required to pay GST on any transactions. However, if any taxes were due at the time of cancellation, you must settle them before the cancellation is approved.
If you have any pending dues when applying for GST cancellation, you must clear them before your cancellation request is processed. Failure to do so may result in rejection of your cancellation application.
SetupFiling helps businesses navigate the GST cancellation process by providing expert assistance. From preparing the necessary documents to ensuring compliance with GST laws, SetupFiling.In can handle the paperwork and help you avoid common mistakes during the cancellation process.
