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Published on:
February 23, 2023
By
Prudhvi Raj

Cancellation, Suspension  Revocation of Registration under GST

Goods and Services Tax (GST) is a comprehensive indirect tax levied on sale, manufacture and consumption of goods and services in India. It is mandatory for businesses with an annual turnover of over Rs. 20 lakhs (Rs. 10 lakhs for North Eastern and hilly states) to register for GST.

However, there may be situations where a registered person may want to cancel, suspend or revoke their GST registration. In this article, we will discuss the various scenarios and procedures for the same.

Cancellation of GST Registration

A registered person may want to cancel their GST registration due to various reasons such as closure of business, transfer of business, change in constitution, etc. In such cases, the person must file an application for cancellation of registration in Form GST REG-16 with the concerned authorities.

Upon receipt of the application, the authorities will verify the details and issue an order in Form GST REG-19, either approving or rejecting the cancellation request. If approved, the person will be required to pay any pending tax liabilities and file all the necessary returns before the cancellation takes effect.

Suspension of GST Registration

In certain situations, the GST registration of a person may be suspended by the authorities. This could be due to non-filing of returns, non-payment of tax, or any other non-compliance with the GST law. The suspension will be communicated to the person in Form GST REG-31 and will be effective from the date of the order.

During the period of suspension, the person will not be able to make any taxable supplies or issue any tax invoices. However, they will still be required to file returns and pay any pending tax liabilities. Once the suspension period is over, the person must apply for the reactivation of their GST registration.

Revocation of GST Registration

In case a person's GST registration has been cancelled or surrendered, they may apply for revocation of registration in Form GST REG-21. This must be done within 30 days from the date of cancellation/surrender, failing which the GST registration cannot be revived.

The authorities will verify the application and issue an order in Form GST REG-22, either approving or rejecting the revocation request. If approved, the person will be required to pay any pending tax liabilities and file all the necessary returns before the revocation takes effect.

Conclusion

Cancellation, suspension and revocation of GST registration are important procedures that businesses must be aware of. It is important to comply with all the necessary regulations and file all the required returns in a timely manner to avoid any penalties or legal action.

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