GST Cancellation Process In India

The Indian Government implemented the Goods and Services Tax or the GST in 2017. Moreover, it created a lot of confusion in the beginning but people are grasping the context now. A company or an individual providing goods or services have to register for GST in India. Without a GST Registration, it’s close to impossible to carry out business in the country. To sum up, as the air over GST Registration clears, we bring to you the very important GST cancellation process in India.

Information Required To Fill The GST Cancellation Form

Firstly, we’ll advise you to gather the following information or documents required to fill the GST cancellation form.

  • Firstly, you’ll need your registered email, mobile number and address
  • Particular value and information on which tax is payable. You’ll have to manually fill the information when applying.
  • To set off the tax liability you will have to fill in either Electronic Cash ledger or Electronic Credit ledger.
  • Furthermore, you’ll need the details of the last return you filed.
  • Lastly, a reason for why you wish to cancel the registration and the date on which you cancel the registration.

Acceptable Reasons For GST Cancellation Process In India

In the CGST Act of 2017 Section 29(1) mentions the rules and required documents to cancel a GST Registration. Among them are the reasons accepted for cancellation of a GST Registration.

  • In case of a change in PAN.
  • If your business has closed down.
  • When you’ve transferred your company to someone else. That person will have to register separately.
  • If your turnover is less than the threshold turnover you won’t be liable to pay GST.
  • If you’ve registered even if your turnover is less than the threshold turnover, you can apply for cancellation but only after a year from registering.

You Cannot File For Cancellation Of GST Registration In India

  • If you’re Tax deductors or Tax collectors
  • Or Taxpayers with a UIN

Furthermore, if any faults are found the application for the cancellation of GST Registration in India style=”font-weight: 400;”> can be rejected. Moreover, you’ll be given a chance to rectify the errors for the following reasons:

  • If you fail to follow the rules mentioned in the Act.
  • When you haven’t submitted IT Returns for three consecutive years.
  • If you fail to file IT returns for six months.
  • If you don’t conduct any business-related transactions within six months of GST Registration.
  • You filed using illicit methods.

Pending Tax Liability’s Effect On GST Cancellation Procedure

Pending tax liabilities do not affect the GST cancellation procedure. Furthermore, when you cancel your registration, you have to pay a sum which is higher than the following.

  • Firstly, input credit in the form of finished or raw goods. The goods accounted are the ones which are stocked one day before the cancellation.
  • Output Tax for the products mentioned above.

The amount to be paid for capital and machinery cost is higher than the following:

  1. Percentage of the input credit of capital goods (reduced).
  2. Tax filed on these products at transaction value.

GST Cancellation Online Procedure

gst cancellation process in india

  • Firstly, log in to the GST portal from the official site for GST cancellation online.
  • Find the service option on your dashboard and click on Application for Cancellation of Registration.
  • Basic Details, Cancellation Details and Verification options will appear.
  • Fill in the Basic Details and save and continue.
  • Fill in the details like the address for the place of business and future correspondence. You can also click the same as above if they’re same.
  • The reason for the cancellation option will appear in option 6. Fill it in. The reasons mentioned before are the ones applicable.
  • Once you’ve filled the details of the required reason, verification option will appear.
  • You’ll have to fill in the name of the authorised signatory and also the place of making the declaration. Subsequently, choose the relevant option depending on these.
  • DSC is mandatory in case of an LLP company.
  • Lastly, an OTP is generated.

Forms For Cancellation Of GST Registration In India

  1. For Cancellation of GST Registration by a registered individual fill Form GST REG 16.
  2. To issue show cause notice for cancellation of GST Registration fill Form GST REG 17
  3. To reply to show cause notice fill Form GST REG 18
  4. Fill Form GST REG 19 for an order for dissolution
  5. You will have to fill Form GST REG 20 to stop the cancellation proceedings
  6. Fill Form GST REG 18 to stay proceedings
  7. Furthermore, fill Form GST REG 21 to apply for revoking the cancellation
  8. Lastly, fill Form GST REG 22 for an order revoking the cancellation

Revocation Of Cancellation

Revocation of GST cancellation procedure is possible within 30 days of applying for cancellation. Form GST REG 21 allows you to file for revocation if an order has been passed by a Proper Officer. Moreover, you must make sure to clear all your defaults before applying for revoking and have an error-free application.

GST Registration Cancelled

Once your GST Registration is cancelled your final return should have details of all taxable goods and services you provide. Make changes in your final GST Return for the distribution of assets if any. To sum up, GST Cancellation Process in India can be a bit of a fuss. A piece of valuable advice would be to hire an expert like the amazing ones we have here at Taxolawgy.