Any Registration granted under the CGST Act may be cancelled by the proper officer either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person.
A registered person, other than a person to whom a unique identification number has been granted under Rule 17 or a person to whom registration has been granted on the basis of TAN under Rule 12, can seek cancellation of his registration.
In respect of a taxable person who has obtained voluntary registration, the application for cancellation of registration would not be entertained before expiry of 1 year from effective date of registration.
A registration granted can be cancelled when –
Proper officer may cancel the registration of a person from such date, including retrospective date, as he may deem fit only after affording an opportunity of being heard, when – a registered taxable person has contravened such provisions of the Act or the rules made there under as may be prescribed; or Registration 37 a person paying tax under Composition Scheme has not furnished returns for three consecutive tax periods; or
Cancellation of registration, shall not affect the liability of the taxable person to pay tax and other dues under the Act for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
Cancellation of registration under SGST or UTGST Act shall be deemed to be a cancellation of registration under the CGST Act or vice versa
Notice of hearing and opportunity of being heard is a MUST before cancellation
Where the registration is cancelled, the registered taxable person shall pay an amount equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher. The payment can be made by way of debit in the electronic credit or electronic cash ledger. In case of capital goods, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods reduced by the prescribed percentage points or the tax on the transaction value of such capital goods [under sub-section (1) of section 15 (Value of Taxable supply) of Act], whichever is higher. The amount payable under these provisions shall be calculated in accordance with the generally accepted accounting principles.
For ease of reference the brief of Registration Rules with regard to Cancellation of Registration are provided in a flowchart form:
GST Registration Cancellation using Portal
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.
Let us take up each case.
Every person who was registered under old laws had to mandatorily migrate to GST. Many such persons are not liable to be registered under GST.
For example, the threshold under VAT in most states was 5 lakhs whereas it is 20 lakhs under GST. However, do make sure you are not making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.
Such a taxpayer can submit an application electronically in FORM GST REG-29 at the common portal.
The proper officer shall, after conducting an enquiry as required will cancel the registration.
Log in to the GST Portal and click the Cancellation of Provisional Registration
You will be asked if you have issued any tax invoices during the month.
Simply fill up the details of authorized signatories, place. Finally, sign off with EVC with you are a proprietorship or a partnership. LLPs & Companies must mandatorily sign with DSC.
Note: Taxpayers who have not issued tax invoice can avail above service. If the taxpayer has issued any tax invoice then FORM GST REG-16 needs to be filed. Refer below.
Cancellation of GST Registration by taxpayer in other cases
All those who cannot follow the above method must file an application for cancellation in FORM GST REG 16. The legal heirs of the deceased taxpayer will follow the same procedure as below.
The registration can be cancelled, if the taxpayer-
(a) Does not conduct any business from the declared place of business OR
(b) Issues invoice or bill without supply of goods/services (i.e., in violation of the provisions) OR
(c) Violates the anti-profiteering provisions (for example, not passing on benefit of ITC to customers)