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GST registration is required for a wide range of businesses. E-Commerce businesses, businesses with a turnover of more than ₹40 lakhs, and businesses transporting goods worth more than ₹50,000/- from one state to another are all required to register for GST. Furthermore, e-way bills can only be generated by taxpayers who have registered for GST and have filed their GST returns on time and correctly. However, if a business wishes to cease operation and have its GST suspended, it can do so.
| The rules and documents required to cancel your GST registration are laid out in Section 29 of the CGST Act of 2017. The proper officer may cancel the registration at his discretion or on the basis of an application filed by the registered person or his legal heirs according to Section 29(1). |
However, when the CBIC revokes a taxpayer’s assigned GSTIN, it means the taxpayer is no longer a GST enrolled entity. He would be relieved of the burden of paying and collecting GST. This is referred to as a Cancelled GST Registration, and it can be very damaging to a business.
| You cannot seek cancellation if you are a tax deductor, tax collector, or taxpayer with an assigned UIN (Unique Identity Number). |
Reasons to Cancel GST Registration
- If the company is going out of business,
- If there are significant changes to the PAN card, or if the company’s constitution changes,
- If the company was demerged, merged with another legal entity, or otherwise disposed of
- If the company was completely transferred to someone else, such as when the proprietor died,
- If the annual turnover is less than the established limit,
- Following the amendment, even taxpayers who voluntarily registered for GST can cancel their registration within one year of registration.
| The cancellation of your registration is unaffected by any pending tax liabilities or obligations. Such obligations are still easily fulfillable. You must pay a fee greater than: when you cancel your registration. One day before the cancellation, the input credit in the form of finished or raw goods was stocked. As previously stated, the output tax for products. |
Information Required to Cancel GST Registration
- Home address, email address, and registered phone number.
- The reason for the cancellation of GST registration, as well as the most preferred date for cancellation
- Details of the taxpayer’s most recent tax return
- When an existing unit is merged, demerged, transferred, etc., the new entity’s GST registration details are updated.
- Particulars on which tax must be paid:
- On semi-finished and finished goods,
- The stock of input and capital input is available
| Bear in mind that the amount of your tax liability will have to be manually entered. You’d have to fill out either an electronic cash ledger or an electronic credit ledger to offset your tax liability. |
How to Cancel GST Registration: Step by Step Guide
Step 1: Go to the official GST website and log into your account.
Step 2: On your dashboard’s service option, a drop-down menu will appear. Select Registration, followed by ‘Application for Cancellation of Registration.’ Three sub-headings will appear after you select ‘Application for Cancellation of Registration’:
- Basic details
- Specifics on the cancellation
- Verification
Step 3: Fill in the required information, then press the ‘Save and Continue’ button. If your business address and your future correspondence address are the same, select the ‘Same as the above’ option.
Step 4: Fill in the reason for the cancellation of GST registration.
Step 5: A ‘verification’ option will appear after providing the reasons for cancellation and the required details. Fill in the name of the authorised signatory as well as the location where the declaration will be made. In this step, an OTP will be generated as well.
Depending on the signatory, select the appropriate option to submit. For instance, as DSC is required for verification in the case of a company or LLP.
Step 6: Only when an invoice has not been issued is the preceding step valid. In the event that a taxpayer has issued an invoice, he or she must instead complete GST REG-16. When a taxpayer files GST REG-16, the tax officer must cancel the taxpayer’s GST registration within 30 days.
GST Cancellation: Final Returns
When the registration of a registered person other than an Input Service Distributor, a non-resident taxable person, or a person paying tax under the composition scheme or TDS/TCS is cancelled, the person must file a final return electronically in FORM GSTR-10 within three months of the date of cancellation or date of order of cancellation, whichever is later, either directly or through a Facilitation Centre notified by the Commissioner.
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