Cancellation of GST registration is a process where the registered GST person will no longer be able to continue his business. The person is also not required to pay GST anymore once he initiates this process. GST aims in one nation and one tax principle. If there is a change in the business of the applicant after GST registration, the applicant can apply for cancellation of GST registration through the official website of GST website. If the GST registration is terminated and the business is still continued, it will lead to an offense under CGST Act, 2017 and heavy penalties will be imposed on the registered person. The cancellation process is as complicated as GST Registration process. Hence you are suggested to take expert advice while cancelling your GST Registration. 

Who can Apply for GST Registration Cancellation?

GST Registration can be cancelled through the following three ways: 

• By the registered person:-

A registered person can apply for cancellation of GST Registration by filing an application through the official website. 

• By GST Officer:- 

GST officer can cancel the registration on his own motion. Revocation done by GST officers can be revoked according to Section 30 of the CGST Act, 2017.

• By Legal Heirs:-

The legal heirs can apply for cancellation of GST Registration after the Death of the registered person

When is Cancellation of GST Registration Done?

Cancellation of GST Registration is done under the following instances:-

1. The turnover is less than the required threshold,
2. He/she wants to discontinue the business,
3. The said business is no longer under the purview of GST regulations. 
4. The registered person has violated the provisions of GST act or rules, 
5. A person registered under the composition scheme has not filed tax for three consecutive years. 
6. The registration process has been done through fraud, wilful misstatement or suppression of facts. 
7. The registered company has not generated any business within 6 months from the date of registration for GST. 
8. The business has been discontinued
9. The business has been transferred fully, amalgamated, demerged, or otherwise disposed 
10. There is a change in the constitution of the business 

NOTE: GST officer will give the registered person an opportunity to be heard before canceling the registration. 

Required Details for GST Registration Cancelation- 

The required details for cancellation of GST registration are as follows:- 

1. Contact details (email and mobile number)
2. Address of the applicant
3. Change in business (when there is a change in PAN)
4. Desired date of cancellation
5. Grounds of cancellation 
6. Digital Signature 
7. Others

Procedure 

The procedure for cancellation of GST registration is done online and the steps are as follows:-

Step 1: Login into your account 

For the purposes of cancellation of GST registration, the applicant is required to login into their account through the official website of GST India. (www.gst.gov.in)

Step 2: Apply for cancellation of registration

Click on “services” and under services, there is registration. The applicant should click on “Application for Cancellation of Registration.” There will be three tabs as follows:

• Basic Details
• Cancellation Details
• Verification

Step 3: Fill Basic details

The applicant should fill in the required details such as an address for any future communications or the applicant can select “Address same as above” and then go ahead with the “Cancellation Details” tab.

Step 4: Cancellation details

The applicant should select the reason for cancellation and date from which registration is to be cancelled. The page will show the following options for reasons for cancellation:-

• Change in business (change in PAN)
• No longer liable to pay tax
• Discontinuance of business / Closure of business
• Transfer of business due to amalgamation, de-merger, sale, leased, or otherwise.
• Death of Sole Proprietor
• Others

Step 5: Verification 

Under the verification tab, the applicant should verify by clicking on the verification statement box and use Digital signature (DSC). 

NOTE: Digital Signature is compulsory for Companies and LLP.

Step 6: Receives OTP

The registered user and receiver will receive OTP to their respective email and mobile number. Enter the OTP number in the given box and submit it. 

Step 7: Generate ARN

On successfully filing of the application for cancellation of registration, the system will generate the Application Reference Number (ARN) and send a confirmation message to the respective email and mobile number. The concerned authority will look into the application and decide to accept or reject the application of Cancellation of Registration. 

Instances Where Officers cannot Accept the Request of GST Cancellation–

GST officer will not be able to accept your application if the following occurs:- 

• If the application is incomplete, 
• In the case of a transfer, merger, the new company is not registered. 

Revocation of Cancellation of GST Registration- 

Revocation means the cancellation of a decision. Revocation of cancellation of GST registration means to reverse the decision to cancel the registration. According to Section 30, the registered person can apply for revocation of cancellation of GST registration done by the GST officer on his motion in the prescribed manner within 30 days from the date of the cancellation order. The officer can either revoke the cancellation of the registration or reject the application but it shall not be rejected unless the applicant has been given an opportunity of being heard. The registered person can request for revocation of cancellation of GST registration within 30 days of the date of application for cancellation of the GST registration.

Re-registration after GST Cancellation- 

When considering an application for re-registration, the concerned authority will check the following: 

•  If a registered taxpayer applies for another registration within the same state, the concerned authority must analyze whether the existing registration will continues or be cancelled. 
•  If the registration is cancelled, then the authority will determine if the registration was cancelled due to a breach of the provisions of 
  1. Section 29(2)(b):- the composition dealer did not submit returns for 3 consecutive tax periods. 
  2. Section 29(2)(c):- registered taxpayer did not submit returns for a continuous period of 6 months. 
•   If the registration is cancelled, enquire whether the taxpayer has filed for revocation of cancellation of registration. 

Conclusion- 

Registrations granted under GST may be canceled for the above-mentioned reasons. Cancellation can be done by the department, the registered person, or the legal heir. If the registration is canceled by the concerned authority, there is a provision to revoke the GST cancellation. Both the process is done online through the official website. Please contact Bizadvisors for further clarifications.

Read our article:All You Need to Know about Eligibility Criteria for GST Registration