GST REGISTRATION CANCEL OR SURRENDER

Now a Days, GST is the most discussing topics in India. All of us are still confused about the process for registration, filling the return forms, tax challan, e-way bill and other forms for GST.

But these days a major issue which is arising is that how to surrender our GST Registration? and where to surrender for GST Registration Certificate.

If you have applied GST by mistake and got registration certificate form GST and you worried that what should be the further process.

If you have wrongly registered for GST and want to surrender your GST Registration, one can cancel GST Registration only if the annual turnover of his business is less than 20 lacs (total of sale and unregistered purchase).

Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.

As per Section 29 of CGST ACT :

(1) The proper officer may, 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, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,––

(a) 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; or

(b) there is any change in the constitution of the business; or

(c) the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24.

(2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,––

(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or

(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or

(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or

(d) 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; or

(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

(3) The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder 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.

(4) 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 this Act.

(5) Every 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, calculated in such manner as may be prescribed:

Provided that 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.

(6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.

CGST Rule for Application for cancellation of registration :

A registered person, other than a person to whom a registration has been granted under rule 12 or a person to whom a Unique Identity Number has been granted under rule 17, seeking cancellation of his registration under sub-section (1) of section 29 shall electronically submit an application in FORM GST REG-16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof, at the common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner:

Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration. 

CGST Rule for Registration to be cancelled in certain cases :

The registration granted to a person is liable to be cancelled, if the said person,-

(a) does not conduct any business from the declared place of business; or

(b) issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder; or

(c) violates the provisions of section 171 of the Act or the rules made thereunder. 

CGST Rule for Cancellation of registration:

(1) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue 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.

(2) The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM REG–18 within the period specified in the said sub-rule.

(3)Where a 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 proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under sub-rule (1) of rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), 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 including the amount liable to be paid under sub-section (5) of section 29.

(4) Where the reply furnished under sub-rule (2) is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG –20.

(5) The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself. 

SURRENDER OR CANCELLATION OF GST REGISTRATION

GST Registration can be surrender or cancelled through the following three ways:

1. GST surrender By the registered person – A registered person can apply for cancellation of GST Registration by himself.

  • If your turnover is less than 20 lacs
  • If your business has been discontinued
  • Death of the Proprietor in case of sole proprietorship
  • If the business is no longer liable to GST (like you have taken registration for the sake you trade inter-state but later government relaxed the norms that GST registration not mandatory for inter-state trade)
  • Because you are shutting down your business or profession.
  • Or any other issue.

2. By GST Officer – GST officer can cancel the registration if the organization falls under following conditions: –

  • If the Organization has violated any law against GST.
  • A composition registered person has not filed tax for three consecutive years.
  • If the registration process has been done through fraud methods.
  • If the registered company has not generated any business from the last six months after registration for GST.
  • Or any other issue.

3. GST surrender By Legal Hirer – A legal hirer can apply for cancellation of GST Registration after Death of the Proprietor in case of sole proprietorship

Steps for Cancellation of Provisional GST Registration:

If you want to surrender GST Registration then you must follow the following steps: –

Step 1

Log in to the GST Portal and click the Cancellation of Provisional Registration.

Step 2

  • The Cancellation page opens.
  • Your GSTIN and name of business will show automatically.
  • You are required to give a reason for cancellation.

Step 3

You will be asked if you have issued any tax invoices during the month.

Step 4

Simply fill up the details of authorized signatories, place.

Step 5

Finally, Sign off with EVC with you are a proprietorship or a partnership.

LLPs & Companies must mandatorily sign with DSC. 

If the taxpayer has issued any tax invoice then form GST REG – 16 needs to be filed.

  • You must log into GST Portal and click on the cancellation.
  • Fill form GST REG – 16 applications for cancellation of GST Registration and provide details like liability date, details of payment, inputs, and capital goods held in stock.
  • The person must reply in Form REG – 18 within 7 days after the notice asking the cause for the cancellation of registration.
  • After verification, the order will be passed in Form GST REG – 20.
  • If the cancellation is confirmed then an officer will issue the order under Form GST REG – 19.

If one cancels CGST then SGST will automatically be cancelled and vice versa.

In case you need assistance or any query about cancellation of GST Registration, please leave a massage in comment box.

Author Details :

Ashish kamthania, Advocate, BSc, BEd, PGDCA, LL.B., LL.M.

Director: Tax & Legal Professional Private Limited

Contact at : GstGuruJi@gmail.com

https://www.facebook.com/kamthania

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9 responses to “GST Registration How to Cancel or Surrender”

  1. Tahir Shaikh says:

    Can you help me how to cancel the persons registered under New registration in GST Portal?
    No online forms to cancel available on website.

    How can I process???

  2. Tejaswi Vuthuri says:

    Can you help me how to cancel the persons registered under New registration in GST Portal?

  3. Amit says:

    Presently Form REG 16 is not available on the portal how to file application

  4. N K Jain says:

    form GST REG – 16 is not available on GST portal. How to proceed – please tell.

  5. Suresh says:

    When REG 16 will open?

  6. Sanjay De says:

    Sir
    Interstate service under 20 lakhs is exempted by igst circular dt 13/10/2017 but due to compulsory registration for interstate service from 1st July I have to take registration but I can’t find any option to cancel what to do and I have also stopped billing with gst no and is not charging gst any more and filling nil 3b return unless I can surrender my gst please guide how to surrender

  7. CMA Rahul Pore says:

    Presently Form REG 16 is not available on the portal. Also, jurisdictional officers are not accepting manual forms and are not aware of the time frame when the form will be made available on the portal. So by that time what procedure should be followed for cancellation?

  8. Syed Mohammad Ghouse says:

    Aadhish sir,ur step by explanation for surrender of provisional migrated GST is very good& informative.But,so far,REG form 16 is still not available in the portal of the GST website.Can u pls.inform the pobable date.U may be aware that this aspect is also causing concern to those dealers,whose t.o.is below 20 lakhs,but issued GST invoices

  9. RAJU R says:

    Sir,
    Thank you for your guidance.
    In case, whether refund is possible, if i’ve Input credit (yet to be availed) lying in credit ledger?

    Provision explains about only Tax payable, however whether provision available fore refund of ITC if closure of business.

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