GST Cancellation Process - Form, Reasons, Certificate & FAQ

Get GST Registration Cancellation Services

  • Adding details of Inputs, Semi finished and Finished goods on date of cancellation
  • Calculation of liability thereon and filling the application.
  •  Issue of Cancellation certificate or Show Cause Notice
  • Replying to Show cause notice
  • In case there is revocation of cancellation and getting order revoking cancellation of registration

GST Cancellation Online

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Latest GST Notifcations on GST Cancellation

Update as of 24/05/2021

It was observed that a large number of applications for GST cancellation were not disposed of by officers within the prescribed time of 30 days.  Guidelines have been issued for officers to accept GST Cancellation application within a period of 30 days from the date of filing of the application and disposing them except when the form is incomplete or any entity incorporated after an amalgamation has not obtained registration in GST and has applied for cancellation of the pre-merger entity.

What is the reason for GST cancellation?

Circumstances where GST registration is liable to be canceled. GST cancellation process is initiated due to the following reasons:

  • Business discontinued
  • Transferred fully for any reason including death of the proprietor
  • Amalgamated with other legal entity
  • Demerged or otherwise disposed of
  • Change in the constitution of business (For example Change of Pvt ltd company to a Public company)
  • Taxable person (other than the voluntarily registered person) who is no longer liable to register.

What is the procedure for cancellation of GST registration?

The GST cancellation process can be completed online:

  • Application for cancellation shall be submitted in FORM GST REG-16 within 30 days of the occurrence of the event warranting cancellation.
  • Details of inputs held in stock and of Capital goods held in stock on the date from which cancellation of registration is sought, its liability, details of the payment made against such liability to be disclosed.
  • The proper officer either on his own motion or based on the cancellation application, cancel the registration.
  • The cancellation of registration shall be effective from a date to be determined by the proper officer.

During the pendency of proceeedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period such manner as may be prescribed.

The registered person shall not make any taxable supply during the suspension period and shall not be required to file any returns under Section 39 of the CGST act.

What happens if my GST number is Cancelled?

  • Cancellation does not affect tax liability that is a person needs to pay tax and other dues for any period prior to the date of cancellation.
  • Input tax credit availed for stock and capital goods on the day immediately preceding the date of cancellation should be reversed or paid.
  • Deemed cancellation under CGST Act, if cancellation is made under SGST or UTGST act.

Cancellation of GST registration by the proper officer

Following are the reasons for the cancellation of registration by the officer:

  1. The taxpayer does not conduct business from the declared place of business
  2. Issues invoice/ Bill of Supply of goods and services in violation of the provisions of this act.
  3. Violates the provisions of Section 171 of the CGST Act (Antiprofiteering rules)
  4. He violates the provisions of Rule 10A, that is he shall furnish details of bank account within 45 days from the grant of the registration certificate or the due date of furnishing return under section 39 whichever is earlier.
  5. A registered person has not filed returns for continuos 6 months ( 3 consecutive tax periods in case of a person who opted for composition levy)
  6. The voluntarily registered person has not commenced the business within 6 months from the date of registration.
  7. Registration was obtained by means of fraud, wilful misstatement, or suppression of facts.

Pending returns to be filed before the revocation of cancellation of registration

If the registration has been canceled on account of the failure of the registered person to furnish returns, no application for revocation of cancellation of registration shall be filed.

After furnishing the returns and payment of tax related to such returns, then an application for revocation of cancellation can be filed.

Latest FAQ on GST Cancellation

A registered person who has obtained separate registration for multiple businesses and who intends to transfer, either wholly or partly the unutilized Input tax credit lying in his electronic credit ledger to any newly registered place of business.

shall within a period of thirty days from obtaining such separate registrations, the details in FORM GST ITC-02A electronically on GST portal, either directly or through a facilitation center notified this behalf by the commissioner.

The input tax will be transferred through FORM GST ITC 02 A in the ratio of the value of assets held by them at the time of registration. Here ‘value of assets’ means the value of the entire assets of the business whether or not input tax credit has been availed thereon.

Yes the new entity here referred to the newly registered person(transferee) on the GST portal has to accept the details so furnished by the registered person(transferor) and after accepting it, input tax credit specified in FORM GST ITC 02 A shall be credited to his electronic credit ledger.

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