Do you want to cancel your GST registration?
Do you want to cancel your GST registration?
You can do it except in case you are - 1. A Tax deductor and Tax collector 2. you have alloted a UIN.
You will be allowed to cancel your registration based on the valid 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 GST was previously applicable to you but now GST is no longer applicable.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.
For example, the threshold under VAT in most states was 5 lakhs whereas it is 20 lakhs under GST. However, do make sure you are not making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.
Have you taken a provisional registration?
If you have migrated to gst from previous tax regime, you can cancel filing an application electronically in FORM GST REG-29 in GST portal.
In other case, it just takes you 5 steps to cancel your registration.
- Apply for cancellation in form GST REG-16.
- The proper officer may raise a show cause notice in form GST REG-17.
- On the receipt of show cause notice, you have to reply such notice in form GST REG-18. Please remember, you have to file this form within a period of 7 days of receipt of the show cause notice.
- If your reply is not satisfactory, the proper officer will ask a clarification.
- An order for cancellation is issued in FORM GST REG-19 within 30 days from date of application.
How can you file a cancellation application?
You can cancel your GST registration online from your home. Please proceed with following 8 steps one after another.
1. Login to the site gst.gov.in.
2. Go to Navigate to the Services > Registration > Application for cancellation.
3. You need to fill form GST REG-16 to apply for cancellation.
4. Provide information as needed in form like GSTIN.
5. Provide reason for the reason for cancellation.
6. Enter the value of stock and respective tax liability of the stock, if any
7. Enter the value to set-off the tax liability either from the Electronic cash ledger or Electronic credit ledger or both;
8. Submit a form with DSC.
On submission of an application for cancellation of GST registration, the GST officer is required to verify the application and issue an order in FORM GST REG-19, within 30 days from the date of application.
If your application of cancellation is approved, your have to file final registration.
You have to file final return in GSTR-10 within 3 months of cancellation.
If you have any queries, please feel free to comment or call us.
Thank You.
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