GST Registration Cancellation

Who Can Cancel GST Registration?

An Officer under GST can either on his own accord or an application filed by the registered person or by legal heirs of the registered person , in case of death of such person, can cancel a GST registration. However, a person who obtained GST registration voluntarily cannot apply for GST Registration cancellation before the expiry of a one year from the effective date of registration.

A GST registration granted to a person can be cancelled by an Officer, if:

• The taxable person under GST does not conduct any business from the declared place of business; or
• Issues invoice or bill without supply of goods or services in violation of the GST Act and/or GST rules.

Prior to cancellation of registration, the Officer would issue a notice to such person whose GST registration is liable to be cancelled, requiring show cause within 7 working days from the date of service of such notice as to why the GST registration should not be cancelled. The registered person can reply to the show cause notice within the prescribed time or the GST registration can stand cancelled.

Procedure for Cancellation of GST Registration

To cancel a GST registration, application must be submitted on the GST Common Portal in FORM GST REG-16. Along with FORM GST REG-16, the following details need to be submitted:

• 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 cancellation of registration is sought.
• Details of any tax liability.
• Details of any GST payment, made against such liability.

If a GST registration is cancelled involuntarily, then the above documents along with the application for GST Registration Cancellation and other relevant documents must be submitted on the GST Common Portal within 30 days.

On submission of an application for cancellation of GST registration, the GST officer is required to verify the application and issue an order in FORM GST REG-19, within 30 days from the date of application.

Revoking a Cancelled GST Registration

In case a GST registration application is cancelled involuntarily by a GST Officer, an application for revocation of cancellation of registration can be filed. All application for revocation of cancellation of GST registration must be filed within 30 days of order of cancellation of GST registration on the GST common portal.

If a GST registration was cancelled due to failure in filing GST returns, then an application for revocation of cancellation can be filed only after filing the GST returns and paying any amount due as tax, along with any amount payable towards interest, penalty and late fee payable.

After filing the delayed GST returns and paying the penalty, an application can be made by a taxpayer for revocation of cancellation of registration. The GST Officer would then verify the reasons for revocation of cancellation of registration, and if satisfied about the grounds for revocation of cancellation of registration, he would revoke the cancellation of registration.