Cancellation of GST Registration - who can apply and process

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Sakshi Shah

GST Portal
GST Registration
GSTIN
Last updated on April 26th, 2021

Cancellation of GST Registration means the GST Number or GSTIN of a registered taxpayer becomes inactive. The taxpayer will not have to pay or collect GST or file returns, after the cancellation of Registration.

Index

GST Registration Cancellation
Take help of an expert to apply for cancellation of registration under GST
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GST Registration Cancellation
Take help of an expert to apply for cancellation of registration under GST
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Who can apply for Cancellation of GST Registration?

Tax OfficerSuo Moto Cancellation

A tax officer may initiate cancellation of registration in the following cases.

Taxpayer – Voluntary Cancellation

A registered taxpayer may initiate the cancellation of registration on the GST Portal in the following cases.

Legal Heirs

The legal heirs can file for cancellation of registration of the proprietorship firm in case of death of a sole proprietor. The taxpayer or legal heir can cancel GST Registration by filing Form REG-16 on the GST Portal.

Process for Cancellation of GST Registration on GST Portal

  1. Login to GST Portal

    Go to the GST Portal and login using a valid username and password.

  2. Go to Services > Registration > Application for Cancellation of Registration

    Navigate to the option ‘Application for Cancellation of Registration’ under the tab Services.Cancellation of GST Registration - Navigation GST Portal

  3. Basic Details, Cancellation Details, Verification

    The cancellation form comprises of 3 tabs – Basic Details, Cancellation Details and Verification.Cancellation of GST Registration - Tabs

  4. Enter details in tab – Basic Details

    Under the first tab of Basic Details, enter the following:
    a. Address of future correspondence,
    b. Mobile Number,
    c. Email Address.Cancel GST Registration - Basic Details

  5. Enter details in tab – Cancellation Details

    Under the second tab of Cancellation Details, select the reason for cancellation from the drop-down. For each reason selected, enter additional details as mentioned in the table under next topic.

  6. Verification

    Under the last tab of Verification, select the name of authorised signatory from the drop-down and enter the place of declaration. Submit the application using DSC or EVC.Verification on GST Portal

  7. Success Message

    A success message is displayed on the successful submission of the application.Success Message

  8. Track status of application

    To track the status of the ARN, go to Services > Registration > Track Application Status.Cancellation of GST Registration - Track Application Status

Cancellation of GST Registration – Reason & Additional details

Reason for cancellation

Additional details required

Change in constitution of business leading to change in PAN

  • Date from which registration is to be canceled
  • GSTIN of the new entity

Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise

Ceased to be liable to pay tax

  • Date from which registration is to be canceled
  • Value of stock
  • Tax liable to be paid on the stock
  • Amount to be used from cash ledger and credit ledger to pay the tax

Discontinuance of business / Closure of business

Others

FAQs

What are the consequences of cancelling registration under GST?

1. The taxpayer will not have to pay GST anymore
2. For certain businesses, registration is mandatory. If the registration is canceled and business still continues, it will be considered as an offense and heavy penalties will apply.

When can I cancel Voluntary Registration under GST?

In the case of a voluntary registration, the taxpayer can apply for cancellation only after the expiry of one year from the date of registration.

How to change GST registration details?

In order to change the details of your registration, you need to visit the GST official portal. Go to Services > Registration > Amendment of Registration Non-Core Fields. Select the desired tab and make the necessary changes.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    GST Registration is the application for GST Number or GSTIN(GST Identification Number). Under the GST(Goods and Service Tax) Regime, it is mandatory for to have GSTIN to collect, pay GST and claim the Input Tax credit.

    For GST registration, the dealer has the following options:

    • Compulsory Registration: Under certain scenarios, the businesses have to get registration under GST

    When is Compulsory GST Registration needed?

    • Voluntary Registration: The business does not have the liability to register under GST, however, can apply for GST Registration. This usually is when the businesses are willing to take advantage of the Input Tax Credit facility

    • Registration under Composition Scheme: Composition scheme is a voluntary and optional scheme for registering under GST. Under the composition scheme, the compliance is simpler and lesser returns are to be filed. The tax is to be filed at a fixed rate. If the business turnover is in between INR 40 Lakhs and 1.5 Crores, they can opt for GST Registration under Composition Scheme

    • No Registration: In the case, when your business does not fall under the conditions for compulsory registration you do not require GST Registration

    Read more on GST Registration Types.

    Hope this helps!

  2. What documents do I need for a new GST number?

  3. Hey @SonalYadav

    To get a GST Number or GSTIN in India, you will be required to Register under GST(Goods and Service Tax)

    Usually, you receive the GST Number within 4–7 days of GST Registration application is submitted.

    Follow these steps to register under GST on GST Portal:[1]

    PART A of the GST Registration Application

    • Go to GST portal
    • Navigate to Services > Registration > New Registration
    • Click on ‘New Registration’ and enter the details

    • You will be displayed with a Provisional ID/GSTIN / UIN for the same PAN. Click on Proceed
    • An OTP (One Time Password) is generated and sent on registered the Mobile number and Email ID. The OTP is valid for 10 mins. You can generate the OTP again in case the time exceeds 10 mins, or the OTP you entered is invalid.
      • You are required to enter both the OTPs received on the mobile number and email id.
    • A TRN (Temporary Reference Number) will be displayed. The same TRN will be sent on your email id and mobile number.
      • You now have a 15 days window to complete and submit your GST Application using the TRN.

    Now let’s start with the PART B of the GST Application

    • Navigate to Services > Registration > New Registration
    • Log in using the TRN
      • Interpret and Enter the CAPTCHA code
      • Verify using OTP. The same OTP is sent on email id and mobile number.
    • Go to ‘My saved application’ page. Click on ‘edit icon’ under actions to continue filling in the application.

    The PART B of GST Application has various tabs. You will be required to enter the relevant details and upload relevant documents.

    • The First Tab is ‘Business Details’. If you want to apply for composition scheme under GST- select ‘Yes’ in the option for composition field. Click on save and continue after you fill in the details and upload the relevant documents.

    Read More: Should I register under Composition Scheme?

    • The second tab is ‘Promoters / Partners’. Here enter personal information, identity & address details, also upload relevant proofs for the same.
    • For ‘Authorized Signatory’ will be auto-filled if the authorized signatory in the earlier tab was selected.
    • Next, add ‘Authorized Representative’ if you have a different authorized person for GST. In most cases, details in this tab are not required.
    • The fifth tab is ‘Principal Place of Business’. Principal place of business is where the headquarters are located and books of accounts are maintained. Apart from the details, you will be required to upload the legal ownership document.
      • Add additional place of business (if any).
    • The sixth tab is for ‘Goods and Service’. Add the details of goods and services supplied by the business. You can enter up to a maximum of 5 goods and 5 services.
    • Next enter ‘Bank Account Details’. Sometimes bank account details are not asked during the GST Registration.
      • In such cases, bank account details should be added after GST registration is successful. The following message will be displayed when you log in into your GST account.
      • Now, you can add bank account details after ‘Amendment of Registration Non-Core fields’.

    • The Authorized Signatory can add bank details and upload the relevant proof. They will be required to verify the proof by e-verification or DSC.

    • In the eighth tab enter ‘State Specific Information’
    • Finally, the last tab is for ‘Verification’. It can be done by
      • Submitting with DSC: DSC is for Digital Signature. You will be required to register the DSC on GST Portal. Sign the application using DSC token.
      • Submitting with EVC or e-Signature: For this option, you will receive an OTP, enter this OTP and submit the application.
    • After the successful submission of GST Registration application, you will receive an ARN (Acknowledgment Reference Number). Use this ARN to track your GST Application.

    Use Track GST Application by ARN tool

    Usually, GST Number or GSTIN is allocated within 4–7 days from submitting the GST registration application.

    Get GST Registration using Quicko.

    Hope this helps!

    Footnotes

    [1] GST Registration Process online on GST Portal: Guide | Help Center | Quicko

  4. Hey @Shweta_Saini

    You can opt out of Composition Scheme from your account on GST Portal. Once the taxpayer type is updated to Regular in your profile, you can start filing GST Returns under the regular scheme. If you are facing any issues while making the withdrawal application, you can create a grievance on the GST Portal.

    Do let us know if you have any further queries.

  5. I want to be able to claim input tax credit for GST paid. Should I opt for the GST composition scheme or regular scheme?

  6. Hey @Joe_Fernandes

    If you wish you claim Input tax credit, you should opt for GST Regular Scheme.

    Read more about the difference here.

  7. 1.composite scheme dealer inward supplies detailes(purchases invoices ) uploaded manadatory show in gstr4 annual return.
    2.composite dealer late fees and interest calculate procedure.

  8. Hi @Sundaraiah_Kollipara,

    As per Rule 62(3)(a) of CSGT Rules, 2017 (Part A_Rules) A composition taxpayer has to furnish

    • Invoice-wise details of inward supplies relating to both intra-state & interstate from registered and unregistered persons separately.

    As per the instructions given below FORM GSTR-4 of CGST Rules, 2017 (Part B_Forms), the following information relating to inward supplies (rate-wise) needs to be provided

    • Table 4A – Information will auto-populate relating to inward supplies from a registered supplier other than supplies where the reverse charge is applicable from the returns furnished by the suppliers in GSTR-1 and GSTR-5.
    • Table 4B – Information will auto-populate relating to supplies from a registered supplier where the reverse charge is attracted from the returns furnished by the suppliers in GSTR-1.
    • Table 4C – Information will auto-populate relating to inward supplies from an unregistered supplier.
    • Table 4D – Information relating to the import of services.

    But as per clarification by GST department, when the auto-population feature for inward supplies which was available on the GST portal was not working. Reporting in table 4A of GSTR-4 is not mandatory.

    Further, late fee of Rs. 200 per day is levied if the GSTR-4 is not filed within the due date. The maximum late fee that can be charged cannot exceed Rs. 5,000. Interest is also calculated at rate of 18% p.a on tax liability.

    You can read our below articles for more insights:

  9. A retail pharmacy store dealer composite scheme registered in gst act recently.dealer purchase of medicines different tax rates(1 ,12,18 percent)and sale to counter sales through on Google pay and phone pay online mode and cash mode sales two types amounts received.my doubt: dealer how to accounting entry passed procedure in books

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