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Guidance for Cancelling the GST Registration

Cancellation of GST Registration

Proper guidance for Cancelling the GST Registration. GST registration can be cancelled once the taxpayer gives a valid reason behind it. The taxpayer himself can apply for cancellation or the tax departments have the authority to cancel a GST registration. Also, the registration will be cancelled in case of the death of the taxpayer who is already registered under GST. 

Most importantly, the taxpayers will have to pay the last return termed as “Final Return” before cancelling his GST Registration. In case, the tax department somehow cancels the GST registration, the taxpayer can appeal to revoke the cancellation as per the GST provisions.

Persons indulged in cancellation of GST Registration

  • The person registered under GST and whose annual turnover is below Rs. 40 Lakhs can apply to cancel the registration himself.
  • The legal heirs of the dead person who was earlier registered under GST.
  • An officer of the Tax Department.

What will happen if we cancel the GST Registration?        

If a taxpayer opts for the cancellation of GST registration, then he might face some consequences that can bother him. The first possibility is that the taxpayer will not proceed with any payments related to Goods and Service Tax.

Secondly, if the taxpayer has cancelled his registration and his business is eligible for GST Registration, it will be considered against the laws and the taxpayer will have to bear the consequences. The tax department can charge a huge amount of penalty for breaking the laws and the business will be liable to suffer for the same.

Is it possible for the new taxpayers to cancel the GST Registration?

Earlier, the cancellation of GST Registration was only available for the taxpayers who are migrated from other taxes to the GST regime. But now the taxpayers who are registered under GST after 1st July 2017 can also apply for the cancellation of GST Registration.

Circumstances under which GST Registration can be cancelled

The taxpayer who is registered under GST can apply for the cancellation under the following circumstances:

  • When a business is going to be closed.
  • When a business is transferred (Amalgamation. Merger, Sale, etc.).
  • When the constitution of business is changed.
  • When a person is not registered under the GST Act anymore.

Persons who cannot apply for cancellation of GST Registration

The people mentioned below are not eligible for filing a cancellation for GST Registration:

  • The one who has allotted a UIN.
  • The ones who are designated as Tax Deducted or Tax Collectors.

Procedures to cancelling the GST Registration:-

Before we proceed with the steps of the cancellation of GST Registration, it is important to be registered under the GST Portal. If you want a registration you may visit Legal Salaah for GST Registration Online. Also, Legal Salaah provides complete guidance with other facilities including the GST Return Filings. So here are the steps that need to be followed:

How To cancel GST Registration step by step:

Step 1:  Log in to the official website of the GST Portal. Click on the link www.gst.gov.in.

Step 2: Now, from the dashboard select the “Services” tab and proceed.

Step 3: Next, you need to open the “Service” tab and look for the “Application for cancellation of Registration” option. After that click on it. After that a new page will open for cancellation of GST Registration.

Step 4: You will get three options namely: Basic Details, Cancellation Details, and Verification. Fill all the details and continue further. Make sure that you choose the appropriate reason for the cancellation of the GST Registration.

Step 5: Lastly, after you have filled all the required details, then you need to verify everything and then you can continue with the cancellation easily.

Forms that need to be filled by the taxpayers to cancel the GST Registration

The taxpayers can apply the cancellation of GST Registration by filing the FORM GST REG 16.  Taxpayers are required to fill all the details asked in the form and then apply for the same. Once the application is seen and verified by the tax department. Once the form is verified the tax department will issue a new form that is FORM GST REG 19. This form needs to be issued within 30 days from the date on which the taxpayer has applied for cancellation.

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