Is cancellation of GST registration in India possible?

Goods and Service Tax (GST) is an indirect tax imposed on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. Any supplier with a gross turnover exceeding Rs 20 lakh needs to register under GST. Although, certain types of suppliers need to compulsorily register under GST irrespective of their turnover. After obtaining GST registration, there may be instances when you might need to cancel GST registration. This blog effectively explains the steps involved in the cancellation of GST registration in India.  

So, what are some of the common reasons for cancellation of GST registration in India?

  • Closure/discontinuation of the business
  • When a taxable person ceases to be liable to pay tax
  • In case of transfer of business due to amalgamation or merger or de-merger or sale or lease etc
  • In case of a change in PAN due to change in the constitution of business
  • Non-commencement of business within the specified time limit
  • In the case, a taxable person is no longer liable for registration under the Goods and Service Tax Act.

But, can anybody apply for the GST cancellation process in India?

In India, only people who meet certain criteria can apply for the GST cancellation process in India. They are:

  • Registered taxpayers
  • Registered officers
  • Legal heir, in case of death of the taxpayer

GST cancellation procedure for registered Taxpayers

When a taxable person cancels their registration, it is called voluntary cancellation. Taxpayers are required to apply on the common portal within 30 days of the event warranting cancellation in form GST REG-16.

1.Login to the site using your username and password

2. Click on the Services tab then click on Registration and the option of Application for cancellation of registration option will appear.

3. Fill out the Form GST REG-16 in the application form

4. Submit the form after filling out all the necessary details.

Voluntary cancellation cannot be done within one year from the date of registration. You can only apply for cancellation of registration after one year from the date of registration.

GST cancellation procedure for the Officer

GST registration can be cancelled in certain circumstances by the officer in charge. These circumstances can be:

  • The taxpayer is not following the rules of the GST Act
  • The taxpayer has not filed GST returns for 6 months
  • A person listed under GST Composition Scheme has not filed GST returns for 9 months
  • A taxpayer who registered for GST has not started a business within 6 months
  • The GST registration was obtained fraudulently

If these situations arise, the officer has to follow the below-given steps:

1. Firstly, the officer has to raise a show-cause notice in form GST REG-17

2. The taxpayer will then file a suitable reply in form GST REG-18 within a period of 7 days from the date of the show-cause notice

3. If the reply from the taxpayer satisfies the officer, then he would cancel the proceedings and issue an order in form GST REG-20

4. On the contrary, if the taxpayer’s reply doesn’t satisfy the officer then he will issue an order in form GST REG-19

GST cancellation procedure for Legal heir, in case of death of the taxpayer

The legal heir of the sole proprietor has to file an application for cancellation of GST registration in form GST REG-16, manually.

Documents required for GST cancellation online

cancellation of GST registration in India
A complete guide on cancellation of GST registration in India, GST cancellation procedure and the documents required in the procedure.
  • Pan of the GST registration applicant
  • Proof of business registration or incorporation certificate
  • Identity & address proof of promoters with photographs
  • Address proof for the place of business
  • A bank account statement showing name, address & a few transactions

Hope this blog helps you with the GST cancellation online process easily. Although, if you still have any queries reach out to us by clicking here.