Cancellation of Registration of GST
Cancellation of GST registration simply means that the taxpayer will not be a GST registered person any more. He will not have to pay or collect GST.
Cancellation of GST registration can be done by-
*** Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.
Purchase Updated Best Book on GST
(Circular No. 69/2018-GST)
CBIC has clarified on various issues in relation to processing of the applications for cancellation of registration filed by taxpayers in Form GST REG-16 as detailed hereunder:
Application for cancellation of registration:
A taxpayer can apply for cancellatin of registration on the common portal within a period of 30 days of the “occurrence of the event warranting the cancellation” in the following cases-
• Discontinuance of business or closure of business;
• Transfer of business on account of amalgamation,
merger, de-merger, sale, lease or otherwise;
• Change in constitution of business leading to change in
• Taxable person (including those who have taken
voluntary registration) is no longer liable to be registered
• Death of sole proprietor;
• Any other reason (to be specified in the application)
In order to reduce the difficulty in identifying the day on which above mentioned event occurs, it is being clarified that application filed by the taxpayer may not be rejected due to violation of the 30 day deadline and the 30 day deadline may be liberally interpreted. The taxpayers need to carefully fill in all the mandatory details while filing the application so that the cancellation application is successfully submitted.
Acceptance of application: It is further clarified that the proper officer should accept application of cancellationwithin a period of 30 days from the date of filing the
application and issue order for cancellation in Form GST
REG-19, except in the following circumstances::
• The application in Form GST REG-16 is incomplete;
• In case of transfer, merger or amalgamation of business,
the new entity in which the applicant proposes to amalgamate or merge has not got registered with the tax authority before submission of the application for cancellation. In respect of above circumstances, proper officer is required to inform the applicant in writing about the nature of the discrepancy and give a time period of seven working days to the taxpayer to reply and if reply on examination is found satisfactory, the proper officer may approve the application for cancellation and issue an order in Form GST REG-19. If reply received is not found to be satisfactory or if no reply is received , then proper officer may reject the application after giving the applicant an opportunity to be heard. Where the reply is received and found to be satisfactory, the proper officer shall approve the application and proceed to cancel the registration by issuing the order in Form GST REG-19 with the effective date of cancellation.
Final Return: Every registered person whose registration is cancelled needs to file a final return in GSTR-10 within three months of the effective date of cancellation or the date of order of cancellation, whichever is later. The purpose of the final return is to ensure that the taxpayer discharges any liability that taxpayer may have incurred. It is also clarified that the requirement of debit the electronic credit and/or cash ledger by amount in case of payment against input tax contained in stock of inputs, semi-finished goods, finished goods and capital goods immediately preceding the date of cancellation of registration should not be a pre-requisite for applying for cancellation of registration. This requirement can be fulfilled at the time of submission of final return in Form GSTR-10.
In case the final return in FORM GSTR-10 is not filed within the stipulated date, then notice in FORM GSTR-3A has to be issued to the taxpayer. If the taxpayer still fails to file the final return within 15 days of the receipt of notice in FORM GSTR-3A, then an assessment order( BEST JUDGMENT BASIS) in FORM GST ASMT-13 shall have to be issued to determine the liability of the taxpayer. If the taxpayer files the final return within 30 days of the date of service of the order in FORM GST ASMT-13, then the said order shall be deemed to have been withdrawn. However, the liability for payment of interest and late fee shall continue.
Purchase Updated Best Book on GST