Cancellation of GST Registration – who can apply and process

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 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.

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.

  3. Basic Details, Cancellation Details, Verification

    The cancellation form comprises of 3 tabs – Basic Details, Cancellation Details and Verification.

  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.

  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.

  7. Success Message

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

  8. 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

  • 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!