Now cancellation of GST is not hard as Indian Government GST Portal offers simple and easy step by step procedure to cancel the GST registration through newly implemented feature. GST or Goods and Service Tax was implemented on 1st July 2017, which promised a lot of progress, in known to be subsuming all the indirect taxes into one. All the business firms which has turnover of over 20 lakhs annually and other business firms that have turnover above this limit has to be registered under GST.
The process of registering for GST has been discussed in articles and guides everywhere on the internet. But now here is chance to know about how as a taxpayer, you can cancel the GST registration by himself or by any governing authorities.
The GST cancellation feature is limited to 3 entities only. Only these 3 entities can initiate the cancellation of registration.
👉 The Taxpayer Himself
👉 GST Officer
👉 A Legal Heir of the Taxpayer
In case of death of taxpayer, there are chances of exception. This means someone else can initiate the cancellation of the GST registration.
Conditions for Cancelling GST Registration
👉 Discontinuance or closure of the business
👉 Transfer of business on account of amalgamation, merger de-merger, sale, leased or otherwise
👉 Registered voluntarily but did not commence any business within specified time
👉 Taxable person ceases to be liable to pay tax
👉 Change in constitution of business leading to change in PAN
👉 A taxable person not liable any longer to be registered under GST act
Who Cannot Apply for GST Registration?
👉 Taxpayers who have been allotted UIN
👉 Taxpayers registered as Tax deductors / Tax collectors
Steps for Cancelling GST Registration Through Online Portal
The GSTIN online portal has the feature of online cancellation of GST Registration for migrated taxpayers. Taxpayers can opt for this service if they have not issued any invoice after registration. The individual can fill out form GST REG 16 in case he has filled any tax invoice.
👉 Login with username and password on GST portal
👉 Then click on the tab ‘Cancellation of provisional registration’
👉 After which a popup will ask that if a taxpayer has raised any tax invoice in the period of GST
👉 Select ‘No’
👉 After the selection, the taxpayer will have to go through verification and have to submit all the form related details along with the digital signature/EVC.
GST REG 16: The forms are applicable only when the taxpayer himself applies for the cancellation of registration and there is no consideration for the application other than the taxpayers’ application which has elapsed one or more year after the GST registration.
GST REG 17: An authorized GST officer can provide the notice of show cause/cancellation to the registered taxpayer and its business entity by using the REG 17 form. The cancellation of registration by the authorized officer can be initiated after issuing the GST REG 17 form to the taxpayer and he can ask for show cause as if why the registration should not be cancelled.
GST REG 18: The show because notice can be replied by the means of furnished GST REG 18 form under the specified time period stated in the sub-rule (1). The taxpayer or the concerned party must reply to the notice within 7 days of issuance of the notice giving the explanation of safeguarding the cancellation of registration.
GST REG 19: The GST REG 19 form is for the usage of GST officer for issuing a formal order for the cancellation of GST registration. The order for sending the notice must be under 30 days from the date of application or the response date in GST REG 18 form.
GST REG 20: The show-cause notice when satisfied by the GST officer can direct for the revoke of any proceedings towards the cancellation of the registration and he should pass the order in the Form GST REG 20.