In case, either the taxable person is no longer liable to be registered under Goods and Services Tax (GST) or the proper officer believes that the registration is liable to be cancelled. Then, the proper officer shall issue an order cancelling the GST registration in Form GST REG-19. Thus, in nut-shell, whenever the GST registration of the taxable person is cancelled, the proper officer will issue an order in Form GST REG-19.

The present article briefly explains the circumstances under which the proper officer will issue a cancellation order in Form GST REG-19.

Cancellation on GST Registration

Issuance of order in Form GST REG-19 when the taxable person himself applies for the cancellation of registration-

As per rule 20 of the Central Goods and Services Tax Rules, 2017, the taxable person can apply for cancellation of GST registration in Form GST REG-16. The taxable person under GST can apply for cancellation of GST registration under any of the following situation-

1. Discontinuance/closure of his business; or

2. He is no longer liable to pay GST; or

3. There is a change in the constitution, resulting in a change of PAN; or

4. He is no longer liable to be registered under GST law; or

5. After obtaining voluntary registration, the taxable person has not commenced the business within the due time; or

6. Due to transfer of business on account of amalgamation or sale or de-merger etc.

When the cancellation application is received by the proper officer and he is satisfied that the taxable person is no longer liable to be registered under GST. Then, the proper officer will issue an order in Form GST REG-19 cancelling the GST registration of the taxable person.

Issuance of order in Form GST REG-19 when the proper officer cancels the GST registration-

If the proper officer has a reason to believe that the GST registration of the taxable person is liable to be cancelled. Then, he can initiate the cancellation proceedings by issuing a notice in Form GST REG-17. Following are the circumstances under which the proper officer can initiate the cancellation proceedings-

1. The taxable person has contravened GST Act and rules made thereunder.

2. The taxable person has wrongly obtained GST registration by either willful misstatement or suppression of facts or fraud.

3. The taxable person, being a composition dealer, has not filed three consecutive returns under GST.

4. The taxable person, other than composition dealer, has not furnished six consecutive returns under GST.

5. The taxable person is voluntarily registered under GST, but, has not commenced the business within six months of registration.

As seen above, prior to cancelling the GST registration, the proper officer is mandatorily required to issue a notice. Post receipt of reply/non-reply of the taxable person, if satisfied, the proper officer will issue an order cancelling the GST registration in Form GST REG-19.

Coverage of cancellation order in Form GST REG-19-

The cancellation order covers the following details-

  • Reference number and date,
  • Application Reference Number and date,
  • Reason for cancellation, if applicable,
  • The effective date of cancellation of registration, and
  • Determination of the amount payable pursuance to cancellation.

Synopsis-

The taxable person is willing to cancel the GST registration The proper officer has a reason to believe that the GST registration should be cancelled
1. Apply for cancellation of GST registration in Form GST REG-16.

2. If the proper officer is satisfied, he will issue an order cancelling the GST registration in Form GST REG-19.

1. Issue a notice, in Form GST REG-17, informing reasons for cancellation of GST registration.

2. If the reply filed by the taxable person is not satisfactory or the taxable person has not filed the reply, then the proper officer will issue an order in Form GST REG-19 cancelling the GST registration.

Author Bio

Qualification: CA in Practice
Company: Taxguru Consultancy / Taxguru Edu
Location: Mumbai, Maharashtra, IN
Member Since: 27 Feb 2017 | Total Posts: 854
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