Its been 1 Year since implementation of GST in India. In this article we will discuss about the procedure to be followed after filing application for Cancellation of GST Registration i.e. REG-16.

It is to be noted that we have to give reasons for cancellation of GST Registration at the time of filing application in form REG-16. The reasons are mentioned in Sec 29 of CGST Act Read with Rule 21. Some of them are

1. Discontinuance of business or closure of business.

2. Taxable person ceases to be liable to pay tax.

3. Transfer of business on account of amalgamation, merger, de-merger, sale, leased or otherwise.

4. Change in constitution of business leading to change in PAN.

5. Registered voluntarily, but did not commence any business within specified time.

6. Taxable person no longer liable to be registered under GST Act.

Attentions of the readers are requested to the fact that Cancellation of Registration is subject to the approval of Jurisdictional Tax Officer. If the cancellation is not approved i.e. Till the approval of cancellation  by the authority,  Returns (GSTR-3B, GSTR-1) for the upcoming months is shown at the GST Portal and it is advised that taxpayers should  file Nil Returns for the following months in order to avoid Late fees.

To expedite the process of cancellation, taxpayers are advised to follow up to their concerned Jurisdictional Ward along with proof of reason for cancellation. For Eg. in case of Death of Proprietor, carry Death Certificate along with Acknowledgement No (ARN) received   at the time of cancellation. For any other reason carry relevant supporting documents to satisfy the concerned Jurisdictional Officer.

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September 2021