Published on:
December 30, 2022
Shreeja Ray

How to cancel GST registration in the GST portal?

If the GST laws do not apply to you, you can cancel your GST registration; if you are closing down your business or profession, you can cancel your registration; or if the tax officer asks you to terminate your registration. You will be taken step-by-step through the various categories of cancellations as well as the process as a whole by reading this article.

The Repercussions of suspending one's GST registration

1. The taxpayer is exempt from GST payments going forward.

2. The Goods and Services Tax (GST) requires registration from specific types of enterprises. If the GST registration is cancelled but company operations are still carried out, this will be considered an offense under the GST, which will result in severe penalties.

When is it Possible for a Taxpayer to Cancel Their GST Registration?

1. The termination of operations or the shutting down of the business

2. When this occurs, the taxable individual is no longer responsible for paying tax.

3. Any transfer of a business that takes place as a result of an amalgamation, merger, de-merger, sale, lease, or any other means.

4. Alterations made to the company's bylaws result in modifications to the PAN.

5. registered freely but did not start any commercial activity within the specified amount of time

6. A person who was formerly required to be registered under the GST laws but is no longer required to do so

Steps that must be taken in order to cancel GST registration:

The following are the steps that must be taken in order to cancel the migrated taxpayer's GST registration:

1. Log in to the GST portal using your account and password.

2. After that, select the "Cancellation of provisional registration" tab by clicking on it.

3. After that, a popup will ask the taxpayer whether or not they have issued any tax invoices during the GST period. If they haven't, the taxpayer should select "No" from the menu.

4. After being chosen, the taxpayer will be required to go through the verification process and hand up all of the information pertinent to the form, in addition to their digital signature or EVC.

Forms that must be filled out in order to revoke GST registration:

GST REG 16 specifies that the forms are only to be used in situations in which the taxpayer himself submits an application to cancel their GST registration and there is no other consideration for the application other than the taxpayer's own application and at least one year has passed since the taxpayer first registered for GST.

By filling out the GST REG 17 form, an authorized GST officer is able to deliver a notice of show cause or cancellation to a registered taxpayer and the business entity that the taxpayer represents. After the taxpayer has been provided with the GST REG 17 form, the authorized officer may commence the cancellation of the taxpayer's registration. The taxpayer may then ask the authorized officer to "show cause" as to why the registration should not be cancelled.

Show-cause notices can be responded to by submitting a completed GST REG 18 form within the time limit indicated in the subrule, as long as they are submitted within the prescribed time period (1). Within seven days of the notice's issuance, the taxpayer or the party that is the subject of the notice is required to respond to the notice by providing an explanation of how they will prevent the cancellation of registration.

Information That Is Required To Be Provided When Submitting An Application To Cancel My GST Registration

When filing a request for cancellation using Form GST REG-16, the applicant is required to specify each of the following pieces of information as part of the process:

1. Address, which includes both a mobile phone number and an email address, is provided below.

2. Reasons for denying the request.

3. The date of cancellation that is preferred.

4. information regarding the value of the stock of inputs as well as the amount of tax that must be paid on the stock of inputs, as well as the stock of inputs that are available in semi-finished goods, inputs that are available in finished goods, and the stock of capital goods/plant and machinery.

5. Specifics on the registration of the new entity in the event that the previously existing unit was consolidated, merged, or transferred.

The Justifications for the Refusal to Accept the Application

The following are some of the reasons why the responsible officer might decide not to accept the application:

1. The application that was sent in is missing some information.

2. In the event that a business is transferred, merged, or merged into another, and the new entity has not yet registered with the tax authority prior to the submission of the application, the application will be denied.

In these kinds of circumstances, the applicant receives a written intimation from the officer who is responsible for the case regarding the nature of the discrepancy. If this is the case, the individual in question is required to respond to the same matter within seven days of the date on which they received the letter. If they fail to do so, the officer in charge of the case may reject the application after giving the individual an opportunity to be heard on the matter. It is necessary to document the reasons for the rejection.


Top 8 Profitable Service Businesses You Can Start Asap
GST will not apply on education, healthcare, and pilgrimages

Updated on:
March 10, 2023