Who can cancel a GST registration?
GST registration can be cancelled by a GST officer or voluntarily by the person registered under GST.
A GST registration granted to a person can be cancelled by an Officer, if:
- The taxable person under GST does not conduct any business from the declared place of business; or
- Issues invoice or bill without supply of goods or services in violation of the GST Act and/or GST rules.
- If a person having GST registration has continously not filed GST returns for six months.
Before the cancellation of registration, the Officer would issue a notice to such person whose GST registration is liable to be cancelled, requiring show cause within seven working days from the date of service of such notice. The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand cancelled.
Voluntary cancellation by the registered person
Under Section 29 of the CGST Act, a GST registration cancellation can be initiated by the person registered under GST in the following circumstances:
- Discontinuance or closure of a business.
- Transfer of business, amalgamation, merger, de-merger, lease or other pertinent reasons.
- Change in the constitution of business, which results in a change of PAN.
- Turnover reduces below the threshold limit for GST registration.
- Death of the sole proprietor.
- Any other reason, the likes of which must be proved in the application.
Before applying for GST cancellation
Before applying for GST registration cancellation, the taxpayer must file all the GST returns up to date. In case there is non-compliance with respect to GSTR-3B return or GSTR-1 return or GST annual return, the overdue returns must be filed before initiating the GST cancellation process.
Applying for GST cancellation
An application for GST cancellation should be made in Form GST REG-16 on the common GST portal. In the GST cancellation application, the registered person must provide the following information:
- Contact address, which includes the mobile number and e-mail address. Reason for cancellation.
- Particulars of the value and the tax payable on the stock of inputs, the inputs available in semi-finished goods, inputs available in finished goods, the stock of capital goods/plant and machinery.
- Particulars of registration of the entity wherein the existing unit have been merged, amalgamated, or transferred.