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Cancellation of GST Registration

If a business shuts down or doesn't generate enough revenue, the GST registration may be voluntarily cancelled. A GST officer could also revoke the registration if a company is not GST compliant. Due to the cancellation of the GST registration, the person or business is no longer required to file GST returns or to pay or collect Tax.

Voluntary removal of GST

A person or organisation that has registered for GST may ask the GST Department to cancel their registration by filing Form GST REG-16. The GST Officer will issue an order to revoke the GST registration in Form GST REG-19 if, after evaluating the application, he or she is satisfied.

Some of the main explanations for voluntarily ending a GST registration include the following:

the termination or closing of a business.

Examples of causes include corporate transfers, mergers, leases, and other relevant events.

Organizational modifications that affect PAN in a company.

Reduced turnover brings it below the GST registration level.

passing away of the sole owner.

By voluntarily cancelling a GST registration, a business owner can save themselves the stress of having to submit GST returns on a monthly basis and incur penalties or late filing fees.

Through the GST Officer

If the officer has a valid reason, the officer may start the cancellation of a GST registration in accordance with GST. The GST Cancellation by Officer procedure will start with the distribution of a show-cause notice in Form GST REG-17.

If any of the following circumstances arise, a GST officer may begin the cancellation procedure.

if a taxpayer repeatedly sends incorrect GST filings.

A taxpayer voluntarily registered for GST, but they didn't start their business in the permitted amount of time.

The registered taxpayer has broken a couple of the GST Act's provisions or regulations.

Fraud or willful deception is used to obtain the GST registration.

A taxpayer either supplies goods or services without filing an invoice or prepares an invoice without actually providing any goods or services in order to avoid paying taxes or fraudulently claim the input tax credit.

The taxpayer whose GST registration is at risk of termination will be alerted in advance if the GST Officer decides to cancel. Prior to the cancellation of the taxpayer's GST registration, they would first be given a fair opportunity to be heard.

The response from the GST Officer to the taxpayer in Form GST REG-17 must include specific justifications for why the GST registration should be cancelled. If a hearing was planned, the notification would also give a day and time for the taxpayer to reply.

The relevant authority may dismiss the case and issue an order in Form GST REG-20 if the taxpayer reacts to the notice in a suitable manner. He may issue a Form GST REG-19 order to revoke the GST registration if he is not satisfied.

How may your GST registration be cancelled?

Taxpayers can cancel their GST registration online with the aid of Returnfiler. The taxpayer must file all past-due GST returns before continuing. Before the GST cancellation procedure can start, the GSTR-3B, GSTR-1, or GST annual return must be filed if they are noncompliant.

Step 1: Submit a GST cancellation application on the unified GST system using Form GST REG-16. The GST cancellation application must contain the following details.

Details on how to contact us, including our phone number and email address.

Reason for cancellation.

the chosen cancellation date.

Information on the value and tax obligations associated with the stocks of raw materials, semi-finished products, finished products, and capital goods/plant and machinery.

The taxpayer uploads the ARN of the pertinent return along with the contents of the most current GST return.

Step 2 :  Within 30 days of the application's submission date, the GST Officer must review the request and issue an order cancellation in the Form GST REG-19. The officer shall notify the taxpayer of the cancellation and the cancellation shall take effect on the date specified by the officer.

If you want to revoke a GST registration, contact a Returnfiler GST Expert or send us an email at We'll check to see if your GST returns have been filed, help you with any that are still due, and submit a request for tax cancellation.

In addition, after you've filed your application, we'll keep an eye on it, respond to any queries you might have, and help you finish the procedure.

Last return

The individual or organisation is obliged to submit a final GST return on Form GSTR-10 within three months of the cancellation date, which is the earlier of the cancellation order's date or the cancellation date.

To ensure that the taxpayer has no unpaid GST, this is done. Input service distributors and non-resident taxpayers who are subject to taxation under Sections 10, 51, or 52 are exempt from this paragraph.

A notification in Form GSTR-3A will be sent to the taxpayer reminding them to file the final GST return in Form GSTR-10 within 15 days of the notice's issuance.

If the taxpayer disregards the notification, actions will be taken to ascertain the taxpayer's obligations based on the information the relevant Officer is aware of. If the applicant sends the return within 30 days of receiving the notice, the assessment order will be cancelled.

Think about cancelling your GST registration

Any past-due GST obligations must be settled by the applicant before the GST cancellation process may begin. Additionally, the taxpayer must pay the higher of the output taxes on the stock of inputs, semi-finished goods, finished goods, and capital goods that are due.

Because the taxpayer won't be able to make a claim if the GST registration is revoked, the input tax credit on the current stock must be paid back.

The final GST payment can be made by a cash ledger or an electronic GST credit. The final payment might be turned in at the same time as the final GSTR-10 return.

Rejecting the GST repeal idea

Any of the following situations may lead the relevant Officer to reject the application.

The submitted application has gaps in it.

The new entity need not register with the tax office before submitting an application in the case of a company transfer, merger, or amalgamation.

In these cases, the competent Officer notifies the applicant in writing of the nature of the disparity. Within seven days of receiving the letter, the applicant must reply. He may deny the application after providing the applicant a chance to speak if they don't comply.

GST Cancellation Revocation

When a GST cancellation is overturned, the registration remains in effect even though the cancellation decision has been reversed. This only applies when a tax official decides to unilaterally revoke a taxable person's registration, which rarely happens. The taxpayer may request revocation of the cancellation order within thirty days of receiving it. The steps for revoking a GST cancellation are as follows:

Within 30 days of the cancellation order, a request for revocation of cancellation in form GST REG-21 may be submitted if the competent Officer has cancelled a registered person's registration suo-moto.

If the GST Officer is satisfied, he or she may, within 30 days after receiving the application, revoke the cancellation of registration by issuing an order in form GST REG-22. Any cancellation or revocation of registration must be justified in writing.

Additionally, the Officer has the authority to deny the request for revocation and to inform the applicant via an order in form GST REG-05. However, the Officer must first send the applicant a GST REG-23 show-cause letter asking for an explanation before rejecting an application. The applicant must reply using form GST REG-24 within seven business days after the notice date. Within 30 days after receiving the applicant's clarification in form GST REG-24, the appropriate authority will make a decision.

advantages of voluntary GST termination

After obtaining a GST registration but before engaging in any commercial activity, the taxpayer must start the special GST cancellation procedure. The same PAN cannot be used to reapply for GST registration if a taxpayer stops filing GST returns and lets his GST registration lapse.

Before submitting a request to have the government's cancellation of a GST registration overturned, the taxable person is required to pay any late costs assessed by the government. Once the restoration is complete, you can properly cancel the GST or keep sending GST reports.

As a result, the taxpayer must monitor compliance once they have obtained a GST registration. Thus, file a request to revoke your GST registration as soon as there is no longer any commercial activity.

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