Who can cancel GST Registration?

Cancellation of GST Registration means the GST Number or GSTIN of a registered taxpayer becomes inactive. The taxpayer will not have to pay GST, collect GST or file GST Returns, after the cancellation of GST registration. The GSTIN of a taxpayer registered under GST can be cancelled due to multiple reasons.

The taxpayer or legal heir can cancel GST Registration by filing Form REG-16 on the GST Portal.

The following people can apply for Cancellation of GST Registration:

1. Tax Officer (Suo Moto Cancellation)

A tax officer may initiate cancellation of registration if:

• Taxpayer is not doing business from his registered place of business
• The tax invoices are issued without selling goods or services by the taxpayer
• The provisions of the act or rules issued by the GST Council are violated by the taxpayer
• GST Registration was obtained either by fraud or misstatement of facts
• Taxpayer under the regular scheme has not filed returns for a continuous period of 6 months
• Taxpayer under composition scheme has not filed returns for three consecutive tax periods

2. Taxpayer (Voluntary Cancellation)

A registered taxpayer may initiate cancellation of registration in the following cases:

• The taxpayer has either closed or discontinued his business
• The taxpayer has transferred his business due to amalgamation, merger, de-merger, sale, leased etc
• There is a change in the constitution of business leading to change in PAN. For Example, proprietorship converted to a private limited company
• The taxpayer has taken voluntary registration but did not commence any business within a specified time
• If a taxable person is no longer liable for registration under the GST Act
• The taxpayer is no longer liable to pay tax

3. Legal Heirs

The legal heirs can file for cancellation of GST registration of the proprietorship firm in case of death of a sole proprietor.