Taxpayers can cancel GST Registration online. Your GST cancellation can also be ordered by tax officers. However, it’s important to know that GST cancellation is different from GST Registration or GST Modification. An in-depth explanation of GST cancellations and how to cancel GST Registration online is provided in this article.
What does GST Registration Cancellation mean?
When you cancel GST Registration online, it means you no longer need to:
- Do GST Return Filing
- Claim Input Tax Credit
- Pay or Collect GST
Why apply for GST Cancellation?
If you don’t want to pay GST or no longer operate a business, GST Cancellation is mandatory. Otherwise, you will be liable to pay penalties.
Furthermore, certain businesses such as e-commerce sellers need to mandatorily have GST Registration regardless of turnover. If the GST registration is canceled and the firm continues to operate, it would be considered a violation under GST and hefty fines will be applied.
What is Voluntary GST Registration Cancellation?
Those who desire to cancel their GST registration as per their own wish must submit a Form GST REG-16 to the GST Department. This process is known as Voluntary GST Registration Cancellation.
The government officer will issue an order terminating your tax registration in Form GST REG-19 after considering your application and finding it satisfactory.
Voluntary GST registration cancellation can occur for a variety of reasons, the most common of which are as follows:
- The cessation of operations of a company.
- The transfer of business, amalgamation, merger, de-merger, leasing, or any other relevant purpose.
- An alteration in a company’s legal structure affects its PAN.
- Turnover falls below the GST registration threshold.
- The single proprietor has died.
- Business owners can avoid having to file GST returns on a monthly basis and paying penalties and late-filing fees if they voluntarily terminate their GST registration.
GST Registration Cancellation by a tax officer of GST
The cancellation of a GST registration can be initiated by an official under GST if the officer has a legitimate reason to do so. Show-cause notices in Form GST REG-17 are the first step in the process of a GST Cancellation by an Officer.
If any of the following situations occur, a GST officer can begin the cancellation procedure.
- If a taxpayer has repeatedly failed to submit GST returns.
- Taxpayers did not begin business within six months after voluntary registration for GST.
- One or more parts of the GST Act or its Rules have been violated by the registered taxpayer.
- An individual obtains a GST registration by tricking or misleading the government in some way.
- In order to evade taxes or fraudulently claim input tax, a taxpayer provides products or services without an invoice or prepares an invoice without providing the goods or services.
Application form to cancel GST Registration Online
An application for cancellation must be submitted using GST REG-16 within 30 days of “the occurrence of the event warranting the cancellation,” which may be found on the GST portal.
Final GST Return Filing after GST Cancellation
Anyone whose registration has been canceled must file a final GST return on Form GSTR-10. This should be done within three months of the date of cancellation or the date of the order of cancellation, whichever one is the latest.
This is done to guarantee that the taxpayer is free of any potential obligations arising from the CGST Act’s Section
Non-filing of the final return
Taxpayers who fail to submit their final returns in Form GSTR-10 by the due date will receive a notification in the form of GSTR-3A, which will direct them to do so within 15 days of receiving the notice.
Taxpayers who do not comply with the notification will have their tax due assessed based on information available to the officer in charge.
Applicants must file their return within 30 days after receiving notice of the assessment. However, the taxpayer will have to be responsible for late penalty fees and interest.
Can you revoke canceled GST registration?
Yes, the taxpayer can apply to Revoke a Canceled GST Registration through an online application. However, It is possible for a taxpayer to request revocation of registration after filing delayed GST returns and paying penalties.
The GST officer will investigate the reasons for the cancellation of registration and, if satisfied, reverse the cancellation.
Moreover, If you want any other guidance relating to GST Registration, please feel free to talk to our business advisors at 8881-069-069.
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