Introduction:

The registration granted under GST can be cancelled for specified reasons. The GST Registration cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their GST registration. In case of death of registered person, the legal heirs can apply for GST Registration cancellation. In case the GST registration has been cancelled by the department there is a provision for revocation of the cancellation. On cancellation of the GST registration the person has to file a return which is called the final return.

Reason for GST Registration cancellation:

The GST registration can be cancelled for the following reasons:

a) a person registered under any of the existing laws, but who is not liable to be registered under the GST Act;

b) the business has been discontinued, transferred fully for any reason including death of the proprietor, amal­gamated with other legal entity, demerged or otherwise disposed of;

c) there is any change in the constitution of the business;

d) the taxable person (other than the person who has vol­untarily taken registration under sub-section (3) of sec­tion 25 of the CGST Act, 2017) is no longer liable to be registered;

e) a registered person has contravened such provisions of the Act or the rules made thereunder;

f) a person paying tax under Composition levy has not furnished returns for three consecutive tax periods;

g) any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of six months;

h) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced busi­ness within six months from the date of registration;

i) registration has been obtained by means of fraud, will­ful misstatement or suppression of facts

Procedure for cancellation of GST Registration:

i. A person already registered under any of the existing laws (Central excise, Service tax, VAT etc.), but who now is not liable to be registered under the GST Act has to submit an application electronically by 31sT December 2017, in FORM GST REG-29 at the common portal for the cancellation of registration granted to him. The Superintendent of Central Tax shall, after conducting such enquiry as deemed fit, cancel the said registration.

ii. The cancellation of registration under the State Goods and Services Tax Act or the Union Territo­ry Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under Central Goods and Services Tax Act.

iii. In the event, the Superintendent of Central Tax has reasons to believe that the registration of a person is liable to be cancelled, a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registra­tion shall not be cancelled; will be issued.

iv. The reply to the show cause notice issued has to be furnished by the registered person in FORM REG­18 within a period of seven working days.

v. In case the reply to the show cause notice is found to be satisfactory, the Superintendent of Central Tax will drop the proceedings and pass an order in FORM GST REG –20.

vi. However, when the person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is li­able to be cancelled, the Superintendent of Central Tax will issue an order in FORM GST REG-19, within a period of thirty days from the date of appli­cation or, as the case may be, the date of the reply to the show cause issued, cancel the registration, with effect from a date to be determined by him and no­tify the taxable person, directing him to pay arrears of any tax, interest or penalty

vii. The registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, 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 or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax pay­able on such goods, whichever is higher.

viii. In case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the in­put tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher.

ix. The cancellation of GST registration shall not affect the liability of the person to pay tax and other dues 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.

Final Returns:

When the GST registration of a registered person other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the composition scheme or TDS/TCS; has been cancelled, the person has to file a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, electronically in FORM GSTR-10 through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

Revocation of Cancellation of GST Registration:

i. When the GST registration has been cancelled by the Proper Officer (Superintendent of Central Tax) on his own motion and not on the basis of an applica­tion ,then the registered person, whose registration has been cancelled, can submit an application for revocation of cancellation of registration, in FORM GST REG-21, to the Proper Officer (Assistant or Deputy Commissioners of Central Tax), within a period of thirty days from the date of the service of the order of cancellation of registration at the com­mon portal, either directly or through a Facilitation Centre notified by the Commissioner:

ii. However, if the GST registration has been cancelled for failure to furnish returns, application for revocation shall be filed, only after such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable to­wards interest, penalty and late fee in respect of the said returns.

iii. On examination of the application if the Proper Of­ficer (Assistant or Deputy Commissioners of Cen­tral Tax) is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revo­cation of cancellation of GST registration, then he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.

iv. However, if on examination of the application for revocation, if the Proper Officer (Assistant or Dep­uty Commissioners of Central Tax) is not satisfied then he will issue a notice in FORM GST REG-23 requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG­24.

v. Upon receipt of the information or clarification in FORM GST REG-24, the Proper Officer (Assis­tant or Deputy Commissioners of Central Tax) shall dispose of the application within a period of thirty days from the date of the receipt of such information or clarification from the applicant. In case the infor­mation or clarification provided is satisfactory, the Proper Officer (Assistant or Deputy Commissioners of Central Tax) shall dispose the application as per para (iii) above. In case it is not satisfactory the applicant will be mandatorily given an opportunity of being heard, after which the Proper Officer (Assis­tant or Deputy Commissioners of Central Tax) after recording the reasons in writing may by an order in FORM GST REG- 05, reject the application for revocation of cancellation of registration and com­municate the same to the applicant.

vi. The revocation of cancellation of GST registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of can­cellation of registration under Central Goods and Services Tax Act .

Our Recommendation on GST

Sr No.  Particulars
1 Registration under GST Law
2 Cancellation of Registration in GST
3 The Meaning and Scope of Supply
4 Composite Supply and Mixed Supply
5 Time of Supply in GST
6 GST on advances received for future supplies
7 Concept of Aggregate Turnover in GST
8 Non-resident taxable person in GST
9 Casual taxable person in GST
10 Input Service Distributor in GST
11 Composition Levy Scheme in GST
12 Reverse Charge Mechanism in GST
13 Tax Invoice and other such instruments in GST
14 Accounts and Records in GST
15 Credit Note in GST
16 Debit Note in GST
17 Electronic Cash/Credit Ledgers and Liability Register in GST
18 Electronic Way Bill in GST
19 Input Tax Credit Mechanism in GST
20 Transition Provisions under GST
21 Integrated Goods and Services Tax Act
22 Compensation cess in GST
23 Imports in GST Regime
24 Zero Rating of Supplies in GST
25 Deemed Exports in GST
26 Pure Agent Concept in GST
27 Job Work under GST
28 Works Contract in GST
29 Valuation in GST
30 Margin Scheme in GST
31 Provisional Assessment in GST
32 Returns in GST
33 Statement of Outward Supplies (GSTR-1) in GST
34 Refunds under GST
35 Refund of Integrated Tax paid on account of zero rated supplies
36 Refund of unutilised Input Tax Credit (ITC)
37 Advance Ruling Mechanism in GST
38 Goods Transport Agency in GST
39 GST on Charitable and Religious Trusts
40 GST on Education Services
41 GST on Co-operative Housing Societies
42 Online Information Data Base Access and Retrieval (OIDAR) Services in GST
43 GST Practitioners
44 National Anti-Profiteering Authority in GST
45 Benefits of Goods and Services Tax (GST)
46 Special Audit in GST
47 TDS Mechanism under GST
48 TCS Mechanism under GST
49 Inspection, Search, Seizure and Arrest
50 Appeals and Review Mechanism under GST
51 Recovery of Tax
(Republished with Amendment as on 01.01.2018 – Source- CBEC)

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One response to “Cancellation of Registration in GST- All you want to know”

  1. Vaidyanathan H K says:

    If the GST registration is cancelled by dealer himself by mistake or oversight, although not liable for cancellation, how such cancellation be revoked. How the liabilities which was required to be cleared before cancellation can be cleared after cancellation. After such cancellation dealer obtained new Regn. as instructed by Jurisdictional officers. What will be the position thereafter.

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