Are you a businessman or trader who conducts a wide-ranging operation? Then you must register for GST and obtain a GSTIN (GST Identification Number).

Any registered firm in India must have a GSTIN and must file the GST on time. However, there are situations when enterprises must cancel the GST on one or more items. So what do you do next?

This article goes through the specifics of canceling the GST registration which will help you in this situation. A thorough step-by-step procedure will guide you through the cancellation of your GST, so read on!

TABLE OF CONTENTS

1. What Exactly is GST?

2. What Does the Cancellation of GST Mean?

3. How Do You Cancel Your GST Registration?

4. What Are Some Reasons to Cancel a GST?

5. What are Final Returns?

6. What Are the Repercussions of GST Cancellation?

7. GST Cancellation Revocation

8. What is the Process for Revocation?

9. FAQs

10. Summing Up

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What Exactly is GST?

In India, the Goods and Services Tax (GST) is an indirect tax applied on the purchase of goods and services. Except for a few state taxes, GST has absorbed all other indirect state and national taxes.

As a result, it is a multi-staged and all-encompassing tax. It replaced the former point-of-origin taxing policy with a point-of-destination or consumption taxation policy.

Since it is a multi-stage tax, it is charged at each stage of production, but it is repaid to all parties engaged in production except the ultimate consumer.

In an intra-state commercial transaction, the revenue is shared 50-50 between the center and the state. For example, if Maharashtra earns around Rs. 10 crores in tax income, the state retains Rs. 50 crore while the national government receives Rs. 5 crores.

What Does the Cancellation of GST Mean?

The cancellation of GST registration indicates that the registered taxpayer will no longer be registered and will no longer be required to pay GST.

He will not be required to collect or pay GST, nor will he be required to claim or file GST returns.

What Happens Once the GSTIN is Revoked?

If you cancel your GST registration, you will no longer be a registered GST payer.

You will no longer be able to claim tax credits for your GST payments, and as a result, you will not have to pay any GST or file any returns.

Cancellation will result in:

1. The taxpayer is no longer required to pay the tax.

2. If you continue to conduct your business after canceling your GST registration, it would be considered an infraction under GST legislation and will result in severe penalties.

Who Has the Authority to Cancel the GST Registration?

GST registration can be revoked in any of the three scenarios stated below:

1. Taxpayer's Request

2. The tax officer ordered it.

3. Taxpayers Who Have Moved (registered with the earlier tax systems)

4. In the event of the taxpayer's death, the legal heirs may make a request.

How Do You Cancel Your GST Registration?

In this part, you will learn how to cancel a GSTIN or a GST registration in several instances.

Since the commencement of GST on July 1, 2017, taxpayers who were previously registered with the previous tax systems have been required to migrate to the GST system. Numerous taxpayers were not required to register with GST.

However, they had to guarantee that they did not conduct interstate supplies since registration was necessary for an interstate supply, which barred the service providers from doing so.

This group of taxpayers must electronically apply for cancellation through Form GST REG-29 on the GST website. The office can authorize the cancellation of such relocated taxpayers after a comprehensive review of the application.GST Cancellation Procedure for Migrant Taxpayers

1. Access the GST site.

2. Select Cancel Provisional Registration from the drop-down menu.

3. When the Cancellation Page loads, it will display your GSTIN and Business name. On this page, explain why you're canceling. If you sent tax invoices in that month, you will be asked.

4. Enter the information for your authorized signatories, including their addresses. Sign off with EVC if your company is a sole proprietorship or partnership. LLPs and companies are obliged by law to register with DSC.

This procedure can be completed even if the taxpayer has not issued a tax invoice. Form GST REG-16 must be filed when a taxpayer issues a tax invoice.

GST Cancellation Procedure for Taxpayers Other Than Migrated Taxpayers

1.Make an application for cancellation of your GSTIN using Form GST REG 16.

2. Include the following information in the application form:

3. On the date of cancellation, information about finished or semi-finished products is in stock.

4. Inform of any potential obligations.

5. Payment-related information

6. The tax officer will issue an order within 30 days after receiving the cancellation application. The officer will decide the date of cancellation and will notify the taxpayer.

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When the Tax Officer Initiates the Cancellation Process

Officers' stakes Form GST REG-17: If the officer believes there are grounds to revoke the registration, he or she will send the taxpayer Form GST REG-17.

Form REG-18 must be returned within 7 days of the date of serving of the notification to explain why the registration should not be revoked.

GST REG-20 for Dropping Cancellation: If the officer deems the response adequate and refuses to proceed, an order is issued in Form GST REG-20.

GST REG-19 for the Execution of Cancellation: GST REG-19 is given when the competent authority gives a cancellation order. The order will be sent within 30 days following the show cause answer.

What Are Some Reasons to Cancel a GST?

There might be several reasons for canceling the GST registration. In this part, we'll look at some of the reasons behind this.

GST can be canceled if and only if the following conditions are met:

1. If a person is not required to register under the GST Act because they are already registered under current law, the GST registration must be revoked.

2. The GST can be canceled if the business is closed down for any reason, or if it is completely transferred owing to the death of the single proprietor or company owner, or if it merges with another firm.

3. If the structure of the firm changes, the GST must be canceled.

4. If a taxable person is no longer required to be registered.

5. If there has been a violation of the current GST legislation.

6. If a registered person/business under the Composition Levy has not filed GST returns for three months in a row.

7. If a registered individual, other than the person paying Composition Levy, has not submitted returns for six months in a row.

8. If a person seeks voluntary registration under Section 25 (subsection 3) and has not started a company within six months, the registration may be canceled.

10. Finally, the GST registration might be revoked if it was obtained unlawfully or by concealing facts.

What are Final Returns?

A final filing of GSTR-10 is necessary for the event of GST registration cancellation or surrender.

This filing provides information on all shares held by the person/taxpayer immediately following the date of cancellation.

GSTR-10 is a final return that must be filed just once and within three months of the date of cancellation or the order of the date of cancellation, whichever comes first.

What Are the Repercussions of GST Cancellation?

The following are the repercussions or impacts of GST cancellation:

1. The taxpayer will no longer be required to file GST returns or pay GST. Certain businesses require a GST mandatorily.

2. If such firms continue to do business while canceling their GST registration, it would be regarded as an infraction under GST, and the authorities will take action and levy fines.

GST Cancellation Revocation

In some situations, the withdrawal of the GST registration is needed. In this section, you will study the notion and its connected features.

What is GST Cancellation Revocation?

The process of revoking or reversing GST cancellation is referred to as revocation of GST cancellation. It suggests that the GST registration is still active.

When Does Revocation Come into Play?

Revocation occurs only when a tax official cancels a taxable registered person's GST registration. This taxpayer can now apply to the office to have the cancellation revoked.

The taxable person has 30 days from the day the cancellation was ordered to do so.

What is the Process for Revocation?

The following is the method for revoking the cancellation of the GST registration:

1. The taxpayer can make an application to revoke cancellation using Form GST REG-21. This applies when the tax officer cancels the registration on his or her initiative.

2. This application must be submitted within 30 days after the cancellation order date on the GST site.

3. If the officer is pleased with the application, he or she may withdraw it by issuing an order in the form GST REG-22 within 30 days of receiving it. Reasons for revocation must be presented in writing.

4. Furthermore, the officer may deny the revocation of cancellation via Form Reg-05, which will be intimidating to the applicant.

5. Before issuing the rejection decision, the officer would issue a show-cause notice in Form GST REG-23. The applicant will be required to offer reasons why the revocation should not be refused on this form.

6. The applicant must submit a GST REG-24 response within 7 days of receiving the show-cause notice.

7. Once the officer receives the applicant's explanation in the form GST REG-24, a decision will be made within 30 days of obtaining this form.

If the registration was canceled due to a failure to submit returns, a revocation application cannot be filed.

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FAQs

How can I get rid of my GST registration number?

If a registered person's registration has been revoked Suo moto by the competent authority, he can file an application for revocation of cancellation in form GST REG-21.

He must submit it to the Common Portal within 30 days of the date of service of the cancellation order.

Can I terminate my GST registration if I haven't filed any returns?

A taxpayer and a proper officer can initiate the cancellation of a GST registration under GST. Other than composition taxpayers, a taxpayer fails to file returns for six consecutive periods.

An assessed have voluntarily registered for GST but has not begun a business within six months after registration.

Is there a charge for canceling GST?

If the taxpayer quits his GST registration, he will no longer be required to pay GST. If an individual continues to do business after relinquishing their GST registration, they will violate GST, and hefty penalties will apply.

There would be no need to file any GST returns.

Is GSTR-10 required?

It is only required for taxpayers who have had their GSTIN deleted. A normal GSTIN bearer is not liable for it.

Summing Up

Since GST is a dynamic act, the government is always making modifications to improve its operation. As a result of the advancement of technology, the government has offered GST registration cancellation online for transparency and ease of use.

All efforts are being made to ensure that individuals feel at ease with all of the procedures, with as little manual involvement as possible.

GST cancellation is one of them, and it is simple to execute using the process outlined above.