Step-by-Step Guide: Cancellation of GST Registration Online on GST Portal

Cancellation of GST registration is not hard work, as the Indian government GST Portal has provided a simple and easy step-by-step procedure to finally cancel the GST registration of migrated taxpayers through the newly implemented feature. Goods and Services Tax, which was implemented recently, to be exact, on 1st July 2017 with a lot of promises and the tagline ” work in progress “, is known to be subsuming all the indirect taxes into one. All the business units are exempted from paying GST if their turnover is under 20 lakhs annually, and all the business units above this exemption limit have to be registered under GST.

The registration part has been discussed everywhere and has been understood manifold by guides and articles, but now there comes a chance to cancel the registration under GST by the taxpayer itself or by any governing authorities. The cancellation option is for migrated taxpayers only who want to cancel their registration on GST.

By far, we have received confirmation that the business organisation can cancel their registration through the recently added feature on the GSTN portal, but the cancellation feature is limited to only 3 entities who can initiate the cancellation of registration:

• The taxpayer himself
• GST officer
• A legal heir of the taxpayer

The cancellation of the registration can be initiated in some cases, such as the death of the taxpayer. The registration can also be done voluntarily but only after one or more years have elapsed starting from the date of GST registration.

57th GST Council Meeting Update

• In the 57th GST Council meeting, the govt. recommended streamlining GST registration cancellation by presenting automatic approval of applications once all pending returns are filed and dues are paid. Read the press release

GST Authorities Cancelled 1.63 Lakh Registrations

Goods & Services Tax (GST) authorities have cancelled over 1.63 lakh registrations in October and November of taxpayers who have not filed their GSTR-3B returns for more than six months. The council started serving notices to taxpayers who did not file their GSTR-3B returns for the past six months or more and then cancelled their registration as per the procedure.

Conditions: When Taxpayer Can Cancel the GST Registration?

• Discontinuance or closure of the business
• Taxable person ceases to be liable to pay tax
• Transfer of business on account of amalgamation, merger, de-merger, sale, lease, or otherwise
• Change in the constitution of the business leading to a change in PAN
• Registered voluntarily but did not commence any business within the specified time
• A taxable person no longer liable to be registered under the GST Act

Who All Cannot File the Cancellation of GST Registration?

• Taxpayers registered as Tax deductors / Tax collectors
• Taxpayers who have been allotted UIN

Steps for Cancellation of GST Registration Online on GST Portal

The GSTN portal is live with the cancellation of GST registration for the migrated taxpayers. All the taxpayers who have not issued any invoice after registration can opt for this service. The individual can fill out Form GST REG 16 in case he has filled any tax invoices.

Steps for Cancellation of GST Registration for the Migrated Taxpayer

• Log in with username and password on the GST portal
• Then click on the tab ‘Cancellation of provisional registration’

• After which a pop-up will ask that if a taxpayer has raised any tax invoices 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

Forms Used to Cancel GST Registration

GST REG 16: The form is applicable only when the taxpayer himself applies for the cancellation of registration, and there is no consideration for the application other than the taxpayer’s application, which has elapsed one or more years after the GST registration.

GST REG 17: An authorised 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 authorised officer can be initiated after issuing the GST REG 17 form to the taxpayer, and he can ask for a show cause as to why the registration should not be cancelled.

GST REG 18: The show cause notice can be replied to by means of the furnished GST REG 18 form within 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 an explanation for safeguarding the cancellation of registration.

Read Also: Goods and Services Tax (GST) Forms for Registration & Cancellation

GST REG 19: The GST REG 19 form is for the use of a GST officer for issuing a formal order for the cancellation of GST registration. The order for sending the notice must be issued within 30 days from the date of application or the response date in the GST REG 18 form.

GST REG 20: The show cause notice, when satisfied by the GST officer, can direct the revocation of any proceedings towards the cancellation of the registration, and he should pass the order in Form GST REG 20.

Application for Revocation of Registration on GST Portal