In case you would like to cancel your GST registration as a result of GST doesn’t apply to you otherwise your business movement went down, or the tax officer demands cancellation, this article can guide you through the method.
WHAT IS MEANT BY CANCELLATION OF REGISTRATION?
Cancellation of GST registration merely implies that the remunerator won’t be a GST registered person any longer. He won’t have to be compelled to pay or collect GST. Registration of GST is not that complicated. GST registration in Chennai can be done through any GST consultants.
CONSEQUENCES OF CANCELLATION
- The remunerator won’t pay GST any longer.
- For certain businesses, registration beneath GST is necessary. If the GST registration is off and business remains continuing, it will be counted as an offence beneath GST and serious penalties will apply.
BY WHOM GST REGISTRATION CAN BE CANCELLED?
GST registration cancellation can be done by:
- Upon taxpayer’s request
- Tax officer
- Legal heirs in case of taxpayer’s death
CANCELLATION OF GSTIN FOR MIGRATED TAXPAYERS
Every person who was registered beneath erstwhile tax laws had to compulsorily migrate to GST. Several such persons might have not been susceptible to be registered beneath GST.
For example, the brink beneath VAT in most states was 5 lakhs whereas it is 20 lakh beneath GST. However, do confirm you’re not creating inter-state providers since registration is obligatory for inter-state suppliers aside from service suppliers. Rs 40 lakhs or Rs 10 lakhs in few states/Union Territories.
Such a remunerator had to submit an application electronically in type GST REG-29 at the GST portal. The proper officer shall, once conducting a probe PRN would cancel the registration.
CANCELLATION BY REMUNERATOR (OTHER THAN MIGRATED)
Why would a remunerator would like to cancel his registration?
- The business has been interrupted.
- The business has been transferred totally, amalgamated, demerged or otherwise disposed —The transferee (or the new company from amalgamation/ demerger) needs to get registered. The transferer can cancel its registration if it ceases to exist.
- There is a modification within the constitution of the business (For example- non-public Ld. has modified to a public restricted company).
FORMS FOR CANCELLATION
All people who cannot follow the above methodology should file an application for cancellation in type GST REG 16. The legal heirs of the deceased remunerator can follow an equivalent procedure as below.
- Application for cancellation needs to be created in type GST REG 16.
- The following details should be enclosed in type GST REG 16
- Details of inputs, semi-finished, finished merchandise control available on the date on that cancellation of registration is applied
- Liability on that
- Details of the payment
- an order should be issued by the proper officer needed for cancellation in type GST REG-19 within 30 days from the date of application. The cancellation is going to be effective from a date determined by the officer and he can give notice to the subject person.
CANCELLATION BY TAX OFFICER
Why can the officer cancel registration?
The registration is off, if the taxpayer-
(a) doesn’t conduct any business from the declared place of business OR
(b) problems invoice or bill while not offer of goods/services (i.e., in violation of the provisions) OR
(c) Violates the anti-profiteering provisions (for example, not passing on good thing about ITC to customers)
With result from first January 2021
(d) use of ITC from electronic credit ledger to discharge over 99% of the liabilities for fixed taxpayers violating Rule 86B – with the entire subject price of providing an extraordinary Rs.50 lakhs thousand within the month, with some exceptions.
(e) A remunerator who cannot file GSTR-1 because of GSTR-3B not being filed for over 2 consecutive months (one quarter for people who choose into the QRMP scheme)
(f) Avails input decrease in violation of the provisions of section 16 of the Act or the principles.
- If the right officer has reasons to cancel the registration of an individual then he can send a prior notice to such person in type GST REG-17.
- The person should reply in type REG–18 within seven days from date of service of notice why his registration shouldn’t be off.
- If the reply is found to be satisfactory, the right officer can put off the proceedings and pass an order in type GST REG–20.
- If the registration is prone to be off, the right officer can issue an order in type GST REG-19. The orders are going to be sent within thirty days from the date of reply to the show cause.
REVOCATION OF CANCELLATION OF REGISTRATION
What is revocation of cancellation?
Revocation suggests that the official cancellation of a call or promise. Revocation of cancellation of registration implies that the registration continues to be valid and also the choice to cancel the registration has been reversed.
WHEN IS REVOCATION OF CANCELLATION APPLICABLE?
This is applicable only if the tax officer has put off the registration of a subject person on his own motion. Such remunerating person can revoke the cancellation by applying to the officer within 30 days from the date of the cancellation order.
- A registered person will submit an application for revocation of cancellation, in type GST REG-21, if his registration has been called off in his or her own accord by the right officer.
- It should be submitted at the Common Portal within thirty days from the date of service of the cancellation order.
- If the right officer finds it satisfactory he will revoke the cancellation of registration by an order in type GST REG-22 within thirty days from the date of receipt of the application. Reasons for revocation of cancellation of registration should be recorded in writing.
- The proper officer will reject the application for revocation by an order in type GST REG-05 and communicate an equivalent to the soul.
- Before rejecting, the right officer should issue a show cause notice in type GST REG–23 for the taxpayer to point out why the applying shouldn’t be rejected. The officer should reply in type GST REG-24 within seven operating days from the date of the service of notice.
- Within thirty 30 from the date of receipt of clarification the proper officer can wind off in type GST REG-24.
Note: Application for revocation can’t be filed if the registration has been off attributable to the failure to file returns. Such returns should be well-founded first alongside payment of all dues amounts of tax, interest & penalty.