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
When GSTR -9 Filling Last date.
Due date is 31st March 2019.
I have issue 20 bill but due to the loss in business, I want to cancel my GST registration but after applying for cancellations do I need to file a NIL return.
Yes, you have to file the return until your registration is cancelled.
Hi,
I need to cancel my GST registration which was registered voluntarily not done any business till date what is the procedure for cancellation is that compulsory to file NIL return.
Login into the portal and in services there is an option for cancellation of registration. Till registration is not canceled you need to file the nil return.
I have applied for cancellation of GST Registration as our turnover remains below the threshold limit of 20 lacs on 11.06.18 but the status of the application is still under process from the department. so what about GST return as from the date of application for cancellation of registration we have not charged and not collected GST amount. if we filed NIL return then it looks that we have not raised any invoice but actually it is not. so what should I do? please suggest
As till the date of cancellation of registration under GST, you will be treated as regd. dealer and you need to collect GST and file the return for the same period.
Once you got cancellation order on GSTIN portal additional notices and orders section. Then file Final Return GSTR-10 within due date which shown in GSTR-10. If it is delayed then you need to pay Late fee Rs. 100 per day max upto Rs.10,000/-.
Your GSTIN will be in suspended status. Your GST return filing period will be automatically closed by GST portal. File the last GST return till the tax period is open. If officer does not issue cancellation certificate then meet the officer and ask for cancellation of GSTIN.
Your GSTIN will be in suspended status. Your GST return filing period will be automatically closed by GST portal. File the last GST return till the tax period is open. If officer does not issue cancellation certificate then meet the officer and ask for cancellation of GSTIN. Once you got cancellation order on GSTIN portal additional notices and orders section. Then file Final Return GSTR-10 within due date which shown in GSTR-10. If it is delayed then you need to pay Late fee Rs. 100 per day max upto Rs.10,000/-.
Hello Sir,
I have registered the GST on 30th January 2018, but I have not made any transaction as of now and did file GST return as well, but interest and late fee keep charging every month.
I have applied cancellation of GST through an online portal.
Please advise, do I need to pay the late fee and interest after applying for cancellation. If I need to pay how can I know that how much amount or maximum penalty I should pay.
Thank you,
Mohammed Aslam