GST Cancellation Charges & Process

GST Cancellation Charges & Process

GST registration can be cancelled voluntarily if the business is dormant or does not have the necessary business turnover. Further, a GST registration can also be cancelled by a GST officer if the business is non-compliant under GST. Once GST registration is cancelled, the person or entity is no longer required to file GST returns and is not required to pay or collect GST.

Voluntary GST Cancellation

If a person or entity with GST registration wishes to cancel their GST registration, a cancellation request must be submitted to the GST Department in Form GST REG-16. After reviewing the application, if the GST Officer is satisfied, he or she will issue an order to terminate GST registration in Form GST REG-19.
The following are some of the top reasons for voluntary GST registration cancellation:
  • Discontinuance or closure of a business.
  • Transfer of business, amalgamation, merger, de-merger, lease, or other pertinent reasons.
  • Change in the constitution of business which results in a change of PAN.
  • Turnover reduces below the threshold limit of GST registration.
  • Death of the sole proprietor.
Voluntarily cancelling a GST registration can save the business owner from unnecessary hassles of filing GST returns each month and payment of penalty or late-filing fee.

Cancellation by GST Officer

An officer can initiate the cancellation of a GST registration under GST if the Officer has justification to cancel the GST registration. The proceedings for GST Cancellation by Officer will begin by issuing a show-cause notice in Form GST REG-17.
A GST officer can start the cancellation process if any of the following events occur.
  • If a taxpayer has failed to file GST returns continuously.
  • An assessee registered for GST voluntarily but did not start a business within six months.
  • The registered taxpayer has broken one or more sections of the GST Act or its Rules.
  • The GST registration is obtained through deception or malicious misrepresentation.
  • To dodge tax or improperly claim the input tax credit, a taxpayer supplies goods or services without an invoice or produces an invoice without a provision of goods or services.
In case of cancellation by the GST Officer, the Officer would notify the taxpayer whose GST registration is liable to be terminated before cancellation. The taxpayer would then be given a reasonable opportunity to be heard before their GST registration is cancelled.
The notice to the taxpayer from GST Officer would be sent in Form GST REG-17 with specific reasons why the GST registration should be cancelled. The notice would also allow the taxpayer to respond to the notice and have a date and time if a hearing is scheduled.
If the taxpayer responds to the notice and the proper authority is satisfied with the response, he or she may dismiss the case and issue an order in Form GST REG-20. If he is not satisfied, he may issue a Form GST REG-19 order cancelling the GST registration.


Created & Posted by (Ramesh Kumar Gupta)

Senior Accounts Manager at TAXAJ

 

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One-Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/BusinessTrademark & Brand RegistrationDigital MarketingE-Stamp Paper OnlineClosure of BusinessLegal ServicesPayroll Services, etc. For any further queries related to this or anything else visit TAXAJ

 

Watch all the Informational Videos here: YouTube Channel

 

TAXAJ Corporate Services LLP

Address: 1/11, 1st Floor, Sulahkul Vihar, Old Palam Road, Dwarka, Delhi-110078

Contact: 8961228919 ; 8802812345 | E-Mail: connect@taxaj.com




    • Related Articles

    • Are there any Charges for GST Cancellation Online?

      GST cancellation charges GST registration can be cancelled voluntarily if the business is dormant or does not have the necessary business turnover. Further, a GST registration can also be cancelled by a GST officer if the business is non-compliant ...
    • GST Cancellation Letter Format

      After Applying for GST Cancellation GST dept. can send you Notice for Seeking Additional Information / Clarification / Documents relating to Application for Cancellation, and in this notice GST Dept will ask for reason for GST Cancellation and ...
    • How to Check GST Cancellation Status

      How to check GST registration cancellation status There is a difference between cancelling a GST registration and modifying a GST Registration. We’ll go through the steps involved in cancelling your GST registration in this article. # What Is ...
    • GST Cancellation Process & Steps Online

      What is the Cancellation of GST Registration? Certain companies must register for GST to operate. You will not be a registered person under the GST system and will no longer be required to pay or collect GST due to the cancellation of GST. When you ...
    • Cancellation of registration under GST- Why & How?

      In case you want to cancel your GST registration because GST does not apply to you or you are shutting down your business or profession, or the tax officer calls for cancellation, this article will guide you through the process. Latest Updates on ...