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
Author Bio
My gst not use of business then my gst no cancel from the concern department
Dear Sir,
We are a Partnership Firm & have two GST Nos. We want to surrender one. We need your kind Suggestion in this regard.
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Iam taken GSt with plan of starting a New Business,but this present situation iam not getting any work . Now iam working under a private firm. iam taken GST Number Aug 2020 and not filed any return. So How to surrender this, and to whom i should contact to cancel? Is there is any charges if till date iam not filed ..
Dear sir,
The proprietor of the business has expired. How to surrender GST.
Is surrendering processfor lifetime? can I get a new gst no. after voluntarily surrendering the old gst no.?
if yes, then how do re- register?
Sir,
I registered sole proprietor under gst and filed return for 3 months and then discontinued my business so I wish to cancel my GST number please guide me for the further process.
Sir,
I have to change proprietorship to partnership can you please suggest the what is the procedure as proprietorship having the GST.
Dear sir i have applied for cancellation of gst no. i have timely filled all the returns but officer still asking for balance sheets for previous 3 years.pls confirm me what to do
Sir,
I am prorior of my Forever Living Products business and I registered under GST.I had discontinued my business so I wish to cancel my GST number please guide me for the further process.
Sir,
I am a proprior and I wish to cancel my GST number as my business is discontinued and I forgot my password as well now please guide me for the further process.Thanks.
One of my client closed his business and want to surrender its GST no. and some capital goods lying in the books of account on which ITC was claimed now ITC will be reversed as per Rule 44(1) (b) on pro rata basis, taking the useful life as five years.
As per Rule 44 (4) The amount so determined under sub rule (1) shall form part of the OUTPUT LIABILITY of the registered person and the details of the amount shall furnished in FORM GSTR-10, where such amount relates to cancellation of registration.
My question is how can utilized cash ledger by paying its liability whether by using FORM GSTR-3B or some other form
thanks for the information
Sir,
I need a clarfication on Surrender of GST Registration.
Surrender was made as income was below the limit of 20 lakhs. Application made on 11th May 2019.
Its still pending for process.
for how many months should I be filing GST Returns after my Application for surrender. Cause once the application is made I stopped charging GST to clients, as well as quoting the GST No. for ITC.
One of my clent want to surrender gst no as the turnover is less than 40 lacs . is it possible with the business being continued under same constituition.
dear sir
please clarify me an assessee of mine wants to surrender gst registration because his turn over is below 20 lacs. earlier he was registered in service tax. please advice me the assessee is applying for cancelation of registration after filing of annual return under gst for the financial year 2017-18 and 2018-19 or before this annual return filling.
thanks
Cancellation tab not reflecting in gst portal
hii sir,
i want to surrender my gst no, it is proprietership. i have a dought that mt inputs is avaialble almost rs60000 this input are refundable or not
Hi,
I registered for GST 1 year back but no business conducted till date, want to surrender my GST registration. Will I have to file returns and pay penelty and interest for nill returns ? Pls suggest.
thanks for such a valuable information .
Sir I Took Casual Gst Registration & Filled all GST Returns for three month , which indicates period for Registration for 90 days , Than i Need surrender or it will Cancel automatically ?
What is the meaning of r/o closure in gst cancellation.
I have been registered under gst. I import industrial chemicals ans sell to factories here. Because of some reasons i now wish to discontinue my business.I have already sold all the stocks in july 2018 and have not issued any invoice thereafter. Can I surrender my registration now. Should I file a nil return for Aug. before applying for cancellation. Will I have any liability to file any returns hereafter.
i have registered under gst act in july 2017 since then i have not filed any return. i want to surrender my gstn what will be the penalty for not filing the return i do not have any transaction during the period. i am regular taxpayer
I have closed my business since 01-04-18 . I have given application for surrender my GST registation and got the surrender application acceptence from the portal, but at present my GST No. is active in the GST portal still now.
Please guide me what we will do for cancelation confirmation letter from GST department.
I have been filling gstr~1 till date since start of gst. I have filed gstr3 till October 2017 .all have been nill except for March 2018 . Tax amount has been paid which was less then RS600. Inadvertently I have failed to file gstr3 from November 2017.now I find I have to pay penalty/interst . In spite of no turnover .(nill ) for all other months . Any way out ?
Dear Sir
I have input tax credit in my gst registration but the business is close and i want to cancel the registration what is the process of cancellation of my registration and what is done with my ITC which is in my account .
Please Guide me.
We have to surrender the GST registration, as the business is closed. But, there is some unavailed ITC in the credit ledger and also deposited excess amount in cash ledger. How to claim the refund ? Will the amount be automatically refunded once if we submit the cancellation under Form GST Reg. 16.
We have to surrender the GST registration, as the business is closed. But, there is some unavailed ITC in the credit ledger. How to claim the refund ? Will the amount be automatically refunded once if we submit the cancellation under Form GST Reg. 16.
Kindly advice.
i am having a GST registration and proprietorship and my turnover is not increasing more than 6 lacs in a year so i want to surrender or cancel the GST registration. Please help me and my GST consultant is insisting me to surrender the GST certificate and close the company also. then open a new company
Sir, i have cancelled my gst registration and officer has also issued oreder for cancellation of registration in form GST REG – 19. But I am still able to abel to login on the gst portal. Is this possible ???
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???
Can you help me how to cancel the persons registered under New registration in GST Portal?
Presently Form REG 16 is not available on the portal how to file application
form GST REG – 16 is not available on GST portal. How to proceed – please tell.
When REG 16 will open?
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
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?
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
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.