Cancellation of GST registration means that the taxpayer will not have to pay or collect GST. For certain businesses, GST registration is mandatory, if the GST registration is canceled it will be an offense and a heavy penalty might be charged.
GST registration cancellation can be done with a request from the taxpayer (when turnover is less than 20 lakhs or any other case), by the tax officer, and the legal heirs of the taxpayer (in case of death of the taxpayer).
Here are the steps for GST registration cancellation for every case:
Steps for GST cancellation when turnover is less than 20 lakhs:
1. Log in to the GST Portal https://services.gst.gov.in/services/login and click on the Cancellation of Provisional Registration.
2. The Cancellation page will open with your GSTIN and name of the business. You are required to give a reason for GST cancellation.
3. You will then be asked if you have issued any tax invoices during that month.
4. You will be required to fill up the details of authorized signatories, place, etc. and submit with EVC if you are a proprietor or business, is in partnership. LLPs & Companies must mandatorily sign in with DSC.
Note: Taxpayers who have not issued tax invoice can only follow the above-mentioned steps. If the taxpayer has issued any tax invoice then form GST REG-16 needs to be filed by the taxpayer.
Steps for GST cancellation in other cases:
Individuals who cannot follow the above-mentioned method must file an application for cancellation in form GST REG 16. The legal heirs of the deceased taxpayer will follow the same procedure written below.
1. An application for GST cancellation has to be made in form GST REG 16. Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation of registration is applied, liabilities, and details of the payment have to be included in the form.
2. An authorized officer has to issue an order for cancellation in form GST REG-19 within 30 days from the date of application. Cancellation will only be effective from the date decided by the officer and will be notified to the taxpayer.
Steps for GST cancellation by the tax officer:
1. If an authorized officer has the genuine reasons to cancel the registration of a person then the will send a show cause notice to the taxpayer in form GST REG-17.
2. The taxpayer must reply in form REG–18 within 7 days from the date of receiving the notice stating why his registration should not be canceled.
3. If the reply is satisfactory, the officer will pass an order in form GST REG –20.
4. If the registration is liable for cancellation, the officer will issue an order in form GST REG-19. This order will be sent within 30 days from the date of reply to the notice.
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