Cancellation of GST Registration online

by Legal Salaah Business Registration Solutions in India

What is meant by the cancellation of GST registration?

The cancellation of GST registration means that the taxpayer will no longer be a GST registered person. He will not have to pay or collect GST once GST registration is canceled.

What are the Consequences of Cancellation?

The taxpayer will not pay GST anymore
For those businesses where registration under GST is mandatory, it will be an offense under GST and heavy penalties will be charged if GST registration is canceled.

How can the cancellation of GST registration take place?

Cancellation of GST registration online can be done by-

Cancellation of voluntary GST registrations made under GST can be applied whenever a taxpayer wants to discontinue his business

Requested by Taxpayer

A- When Turnover is less than 20 lakhs

Those who were registered to pay tax as per old laws are mandatorily required to migrate to GST. If the turnover is less than 20 lakhs, he can get a cancellation to remove the compliances.

For such taxpayers, an application has to be submitted electronically in FORM GST REG-29 at the common GST portal. The proper officer after conducting an inquiry as required will cancel the GST registration.

B- Cancellation by the taxpayer in other cases

The taxpayer usually cancels the registred GST in the following cases

The business has been stopped
The business has been relocated fully, combined, demerged or otherwise disposed of. If it ceases to exist, the transferor will cancel its registered GST:-
There is a change in the structure of the business.(e.g. sole proprietor to a private limited company )
The proper officer issues an order for cancellation within 30 days from date of application in FORM GST REG-19.
The cancellation will be effective from a date decided by the officer and he will notify the taxable person

2. Cancellation by the tax officer

The tax officer can do the cancellation in the following cases:

(a) Business is not conducted from the declared place of business

(b) Without the supply of goods/services, invoice or bill is issued

(c) Violation of anti-profiteering provisions. If the seller does not provide an option to the customer to avail GST benefits (not passing on the benefit of ITC)

Procedure/Process

Legal Heirs

The legal heirs of the deceased taxpayer or those who could not follow the above methods shall have to fill FORM GST REG 16. The details to be provided are as under:

1- Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation is applied

2- Liabilities if any

3- Details of the payment made