Do You Need To File GST Return After Applying Registration Cancellation?

There are two ways to cancel a GST registration – voluntary and by authorities. If in case, you have applied for (voluntary) cancellation of your GST registration, you must about your liability to file GSTR or pay a penalty in the interim period between the application date and the date of cancellation.

How to Apply for Voluntary Cancellation of GST registration (Rule 20)?

According to Rule 20 (Application for cancellation of registration) of GST law, A registered person, except for a person who has registered under rule 12 (Person required to TDS/TCS) or a person who has been given a Unique Identity Number under rule 17, who wants to voluntarily cancel his/her registration under sub-section (1) of section 29 shall have to submit an online application in FORM GST REG-16, along with complete details as asked in the form, on the common portal. The person may also furnish relevant documents in support of his/her application at the same time.

This application must be submitted within 30 days of the occurrence of the event due to which the cancellation is being requested.

The applicant may submit the application either directly or through a Facilitation Centre notified by the Commissioner.

Procedure for Suspension of GST Registration (Rule 21A)

Once a registered person has applied for the cancellation of registration, his/her GST Get to know easy steps for cancellation of GST registration online on GST portal of migrated taxpayers. We included original screenshots for easy understanding registration shall be considered suspended from the date of application or the date from which the cancellation is requested, whichever is later.

If the assigned officer has valid reasons to believe that the registration of the said person should be cancelled under rule 21 or section 29, they may suspend the registration of the person after giving them a fair opportunity to be heard.

Once the registration of a person has been suspended, they shall not be eligible to make any taxable supply during the suspension period and shall, therefore, not be required to file any return under section 39.

The suspension of a person may be cancelled/revoked by the proper authority upon completion of the proceedings. In that case, the revocation shall be effective from the date on which suspension became effective.

Cancellation of GST Registration (Rule 22)

When a person who has applied for cancellation is found to be eligible for cancellation of registration, the proper authority shall issue an order in FORM GST REG-19, cancelling the registration from a date as determined by him. The order must be issued within 30 days from the date of application or from the date of reply to the show-cause notice by the applicant.

After cancellation, the applicant shall be notified of the same, directing him to pay due tax, interest or penalty (if any), including the amount liable to be paid under sub-section (5) of section 29.

To conclude,

When a person submits an application for voluntary cancellation of GST registration, his/her registration shall be suspended with immediate effect and they shall not be liable to make any taxable supply and therefore, will not have to file any return during the suspension period.

The person requesting for voluntary cancellation is still required to file Annual Return (GSTR 9/9A/9C) In a very peculiar situation for the taxpayers, there is an only a 1-month gap between the annual return filing of GSTR 9, 9A and 9C for the whole two years and Final return (GSTR-10). The final return (GSTR-10) must be submitted within three months from the date of the cancellation order. Your log-in on the GST Portal will remain active until all the required activities are fulfilled.