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.
- Who can apply for the Cancellation of GST Registration?
- Process for Cancellation of GST Registration on GST Portal
Who can apply for Cancellation of GST Registration?
Tax Officer– Suo Moto Cancellation
A tax officer may initiate cancellation of registration in the following cases.
- Taxpayer is not doing business from his registered place of business.
- The taxpayer issues tax invoices without selling goods or services.
- The taxpayer violates the provisions of the act or rules issued by the GST Council.
- GST Registration was obtained either by fraud or misstatement of facts.
- A 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.
Taxpayer – Voluntary Cancellation
A registered taxpayer may initiate the cancellation of registration on the GST Portal 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, lease, 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.
- Application for cancellation, in case of voluntary registration, can be done only on after expiry of one year from the registration date.
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
- Login to GST Portal
Go to the GST Portal and login using a valid username and password.
- Go to Services > Registration > Application for Cancellation of Registration
Navigate to the option ‘Application for Cancellation of Registration’ under the tab Services.
- Basic Details, Cancellation Details, Verification
The cancellation form comprises of 3 tabs – Basic Details, Cancellation Details and Verification.
- 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.
- 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.
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.
- Success Message
A success message is displayed on the successful submission of the application.
- Track status of application
To track the status of the ARN, go to Services > 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
Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise
Ceased to be liable to pay tax
Discontinuance of business / Closure of business
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.
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.
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.