Once you have registered under the GST, you should follow the provisions. No matter you have registered your business under compulsory registration or voluntarily. Small taxpayers have considered it as burdensome. Therefore they want to cancel their registration.
If your business have inter-state supply of goods you can not surrender your registration.
Cancellation is allowed only on the certain grounds provided under the act.
What are the grounds on which you can cancel your registration?
You can apply for the cancellation of GST registration if you fall under any one of the following six grounds:
1. If you discontinue your business.
2. If you are not liable to pay tax.
3. You transfer your business by the way of amalgamation or merger or de-merger or sale or lease etc.
5. If you do not commence your business within the specified time limit of the registration.
6. GST was previously applicable to you but now GST is no longer applicable.
Are you covered in any of the above points?
If yes, Please ensure that you do not have any pending returns to file and there is no tax liability to pay.
Have you filed all your pending returns?
If not, please file all your pending returns before the application for cancellation. Because filing all your pending return in the first step to surrender. And your registration will not accept unless you have filed all your pending return.
Is there any pending tax liability to pay?
If you have any tax liability or any other obligation due, you can not proceed for the cancellation. Even cancellation of registration will not save you from your liability. You will still be liable to discharge such obligation.
If you are in any of above 6 grounds and there is not returns to file, you can proceed for the cancellation.
Every person who was registered under old laws had to mandatorily migrate to GST. Many such persons are not liable to be registered under GST.
Have you taken a provisional registration?
If you had migrated to gst from previous tax regime or you have taken a provisional registration under GST, you can cancel your registration filing an E-application in FORM GST REG-29 through GST portal.
In other case, it just takes you 5 steps to cancel your registration.
Cancellation of registration can be done online easily. Please click on next button of the left top of this article. You will find the next article on how to apply for cancellation online.