Cancellation of GST Registration

Cancellation of GST registration means that the taxpayer will not be a GST registered person any more. Taxpayer will not have to pay or collect GST or claim input tax credit and needs not file GST returns. For few businesses, registration under gst is mandatory. If the gst registration is cancelled and the business is still in operation, it will mean an offence under GST and heavy penalty will apply accordingly.

Who can cancel the GST registration?

Cancellation of GST registration can be done be the following persons: –

• By the taxpayer
• By tax officer
• By legal heirs (in case of death of taxpayer)

Reasons for GST Cancellation

The proper officer can initiate the cancellation proceedings if any of these circumstances arise:

• If a taxpayer registered under the composition scheme has not filed the returns for six continuous months.
• A taxpayer other than composition taxpayers fails to file returns for six continuous months.
• An assessee has taken voluntary GST registration but has not started a business within six months of registration.
• The registered taxpayer failed to comply the provisions of the GST Act or Rules made thereunder.
• The GST registration is obtained by fraud or willful misstatement.
• A taxpayer supplies goods or services without any invoice or issues any invoice without a supply of goods or services to evade tax or wrongful availing of the input tax credit.
• If a taxpayer fails to pay tax, interest or penalty to the GST department within three months from the date on which such payment becomes due.
• Change in constitution of the taxpayer leading to change in PAN.
• Transfer of business due to merger or amalgamation.
• Closure of business of the taxpayer.
• Death of sole proprietor.

Date of Cancellation of GST registration if cancelled by tax officer

• The effective date of cancellation shall be the date as mentioned in the cancellation order in Form GST REG-19.

Consequences of cancellation of GST Registration

Once the GST registration is cancelled:

• Taxpayers will be informed about the cancellation of GST registration.
• Cancellation order in GST Form REG-17 will be issued to taxpayers.
• Taxpayers will not be allowed to file a return or upload invoices for the period after the cancellation date.
• Taxpayers will not be able to change registration details except phone number and email after the issue of the cancellation order.

Taxcellent helps you in filling revocation application and ensure proper compliance with all the statutory notices.