What Is Cancellation Of GST Registration?
When GSTIN number issued to the registered taxpayer cancelled by the taxpayer himself voluntarily or by
the central tax authority, it is known as cancellation of GST registration. GST cancellation is basically done to surrender GST number and to opt out of GST scheme. It is mandatory for certain businesses to apply for GST registration. After GST cancellation, you will not be considered as a registered person under GST scheme and you don’t have to pay or collect any GST. If you are still running your business after GST cancellation, you will be liable to pay high penalties to the income tax department. Tax officer is responsible for cancellation of GST registration in India. In case of voluntary registration, cancellation application can only be made after one year from the date of registration by the registered taxpayer.
Reasons For GST Cancellation
There are various reasons for GST cancellation which are as follows –
Persons registered under any of the previous tax laws are not liable for registration under GST act.
For example – The threshold limit for registration of already registered persons under VAT was Rs.10
Lakhs which has been extended to Rs.40 lakhs for GST registration and therefore persons who were
registered under VAT are not liable for registration under GST scheme.
Discontinuation of business is also considered one of the reasons for GST cancellation. GST number
can be cancelled in the following situations –
Transfer of business (either full or partial) includes the death of the proprietor.
Combining of one business entity with other known as amalgamation.
Any change in the constitution of business results in GST number cancellation.
Any registered taxable person who is no longer entitled for GST registration can go for GST
cancellation. It excludes persons or individuals registered voluntarily under section 25(3) of the
In case a person registered under GST composition scheme fails to submit the return for 3months continuously, GST number of the concerned person will be cancelled by the tax
There are certain cases where persons take voluntary registration under section 25(3) of the
CGST act but don’t start their business within 6 months from the registration date results in GST
If a person registered under GST unable to submit GST returns (https://www.finacbooks.com/gstreturn-filing) for the period of 6 months continuously, GST number of the concerned person will
be cancelled by the tax authorities.
If any person obtains registration by means of fraud, misstatement or suppression of facts, GST
registration of the concerned person will be cancelled by the tax authorities.
Who Can Cancel The GST Registration?
There is a standard procedure which is to be followed by the tax officer for cancellation of GST registration in India. A show cause will be sent by the tax officer to the registered person that he or she needs to answer
within 7 working days from the date of GST cancellation order. The registered person needs to reply this
notice within the specified time unless the GST registration will be cancelled by the tax authorities.
Cancellation of GST registration can be done by the following persons –
1 By the taxpayer
2 By tax officer
3 By legal heirs (in case of death of taxpayer)
Who CanFile For Cancellation Of GSTRegistrationInIndia?
The following persons can file for GST cancellation online in India –
Migrated taxpayer whose enrolment application has been approved
Migrated taxpayer who has not filed any other form after filing the enrollment application.
Who Cannot File For Cancellation Of GSTRegistrationInIndia?
Following persons cannot file for GST cancellation online in India –
Persons registered as tax diductors/tax collectors.
Persons with unique identification number (UIN)
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