Following are the circumstances under which registered taxpayer can apply for cancellation of GST registration –
1. Closure / discontinuation of the business;
2. When a taxable person ceases to be liable to pay tax;
3. In case of transfer of business due to amalgamation or merger or de-merger or sale or lease etc.;
4. In case of a change in PAN due to change in the constitution of business;
5. Non- Commencement of business within the specified time limit;
6. In the case were the taxable person is no longer liable to be registered under the Goods and Service Tax Act.
Your registration can also be cancelled by a Proper Officer if he finds certain specified defaults in your registration. But before cancelling your registration, he will give you an opportunity to be heard on the following grounds:
1. You have contravened prescribed provisions and rules of the Act;
2. You being a Composition taxpayer failed to furnish returns for three consecutive tax periods;
3. You being a Normal taxpayer failed to furnish returns for a continuous period of six months;
4. You had opted for voluntary registration but failed to do business within six months from the date of registration;
5. You had obtained registration by means of fraud, willful misstatement or suppression of facts.
Who All Cannot File the Cancellation of GST Registration?
1. Taxpayers registered as Tax deductors / Tax collectors.
2. Taxpayers who have been allotted UIN.
3. UIN stands for Unique Identity Number. It is the unique registration number, which is given to certain specified persons, instead of the usual GSTIN.
The persons who are issued the UIN are as follows:
1. A specialised agency of the United Nations Organisation or a multilateral financial institution and organisation notified under the United Nations (Privileges and immunities) Act of 1947. For example: IMF, UNESCO, WHO etc.
2.Consulates or embassies of foreign countries.
3.Any person notified by the Commissioner.
As one can observe, these are persons who do not make any taxable outward supplies. The reason why a UIN number is granted to these persons is, that they are entitled to a refund of the tax which they pay on inward supplies. To standardise this process, the UIN is provided, so that using the same, they may claim the refund of the tax paid on their inward supplies. The structure of the UIN in GST will be similar to the GSTIN i.e. it will be a 15 digit code.
How to Cancel GST Registration ?
GST registration can be canceled using the form given below.
GST REG 16
GST REEG 16 form is used to apply for cancellation. Any application for cancellation of registration will be considered in the case of a taxable person who has voluntarily registered before one year from the effective date of registration.
GST REG 17
An appropriate officer can send a registered person cancellation notice using this form. Where the appropriate officer has reason to believe that the registration of a person can be canceled under section 29. He will issue a notice to a person who has used Form GST RE-17 This notice will have to be issued within 7 days. Otherwise, the registration of the person will not be canceled.
GST REG 18
The reply of the show cause notice issued under sub-rule (1) will be presented in Form RGE-18 within the specified period in the sub-rule. The concerned person should reply within 7 days notice in this form, why his registration should not be canceled.
GST REG 19
This form will be utilized by the appropriate authority for issuing formal orders for cancellation of registration. This order should be sent from the date of application or within 30 days from the date of response in the GST REG 18 form.
GST REG 20
If the appropriate GST official feels satisfied, then the appropriate officer will leave the proceeding and the farm will pass an order in GST RE-20.
Prepartion of Application Gst Cancellation
Submission Of Application
Required OTP from Client
GST Cancellation Certificate