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Cancellation of GST Registration

Cancellation of GST registration means when the GSTIN of the taxpayer gets canceled by the GST Authorities or suo-moto (by the taxpayer himself/herself). Once the GST Registration is canceled the taxpayer will not be liable to pay or collect the GST.

So in this article, we will cover all the aspects related to the cancellation of GST registration:

GST Registration Cancellation Ways

GST registration can be canceled by any of the below-mentioned ways:

(i) The GST Authorities cancel the GST registration of the taxpayer.

(ii) The taxpayer applies for the cancellation of GST Registration.

(iii) Cancellation of GST Registration initiated by the legal heirs or representative in case of the demise of the registered taxpayer.

GST Cancellation Reasons

Here is the list of reasons due to which GST registration of a taxpayer can be canceled:

  1. Any person who was not liable to obtain GST registration.
  2. When the business gets insolvent
  3. Change in the Constitution of the Business
  4. Any contravention of GST Provisions
  5. Any composition holder who fails to file GST Returns.
  6. Any normal registered taxable person who fails to furnish the GST Returns.
  7. Non Commencement of Business
  8. Fraudulently obtaining the GST Registration

Process of Cancellation of GST Registration

Here is a step by step guide using which you can cancel the GST registration:

Step 1: Open the GST Portal

Step 2: Log in to your account by using valid credentials.

Step 3: Once you are logged in, you need to choose the Service Option available on top of the menu bar.

Step 4: After choosing it, a drop-down menu will appear and you need to opt registration menu and select the Application for Cancellation of Registration.from the pull-down.

Step 5: You will be redirected to a new page, wherein you need to fill the below three sections:

(i) Basic Details

(ii) Details of Cancellation

Step 6: Post furnishing the above details you need to validate them using DSC or AADHAAR based verification.

Cancellation of GST Registration by the tax officer

The tax officer can cancel the GST registration in case if the registered taxable person-

(a) When no business is carried out by the taxpayer from the registered place of business; or

(b) The taxpayer violates any GST provisions such issue of invoice or bill without any actual supply of goods or/and services; or

(c) The taxpayer does not abide by the provision of anti-profiteering such as not passing the benefit of Input Tax Credits to the customers.

Steps Involved

Here are the steps involved in the Cancellation of GST Registration by the tax officer:

  1. The proper officer can cancel the GST registration by sending him a show-cause notice in the Form GST REG-17.
  2. Once the taxpayer receives it he needs to reply with a reason within 7 days from the date on which the notice was served to him in the Form GST REG-18.
  3. The proper officer will drop the legal proceeding if he finds the reply to be satisfactory and will pass an order in the Form GST REG –20.
  4. In case if the taxpayer does not find the reason furnished by the taxpayer satisfactory, the proper officer will continue the legal proceedings of the cancellation of GST registration by issuing an order in GST REG-19 form. This order will be passed within 30 days from the date on which the reply of show cause notice was received by the tax officer.