The Procedure for Online Cancellation of GST Registration

By Ravish kumar - March 06, 2018

The Procedure for Online Cancellation of GST Registration

Businesses in India that make a turnover exceeding Rs.20 lakhs on goods supply or services have to get registered under the Goods and Service Tax. The GST was implemented on the 1st of July 2017 to submerge all the multiple indirect taxing systems onto one.

 Registering for GST makes your company legitimate and helps the government predict the income tax revenue growth that will aid policy changes that will affect your business in the foreseeable future. With the online company registration in India, more companies are registering for GST.

When a taxpayer cancels his online GST registration, it means that the taxpayer will not be a GST designated person anymore. He will not have to pay or collect GST. The GST portal has made the process of cancellation of GST registration very easy. But before a taxpayer can cancel his GST online, he should have done his online company registration in India.

For GST Online Registration

  • Log on to www.gst.gov.in.
  • At the top of the page, Click on the ‘Services’ tab on the menu
  • You will be given three options, viz.‘Registration ’, ‘Payments, and ‘User Services ’.
  • Since you want to register, Click on ‘Registration’ and click on ‘ New Registration ’.
  • You will have to choose between being a taxpayer or a GST practitioner on a new page you will be redirected to as well as entering some few details.
  • Information such as the legal name of the business, the state and district in which the entity is located, Permanent Account Number, email address and mobile number.
  • Information supplied would then be verified by the portal before a one-time password, or an email will be sent to you for confirmation.
  • You will have to upload some documents depending on the kind of business you run.
  • You will fill in some few details after which the Application Reference Number will be sent through email or SMS.
  • A GST officer will verify your application and approve it, or you will be requested to provide some more details or documents until all requirements are satisfied. Then your application will be approved.

The online GST cancellation feature on the GSTTN portal is limited to only three entities: The taxpayer, GST officer and a legal heir of the taxpayer

A taxpayer can cancel the GST registration based on the following reasons

  • The taxpayer is no longer liable to pay tax
  • Closure or discontinuation of the business
  • If there is a change in the PAN due to change in the business constitution.
  • Any activity that transfers ownership of business due to a merger, sale, amalgamation, or lease of the company.
  • A taxpayer who registered voluntarily but was unable to commence any business within specified time

However, taxpayers registered as tax collectors or deductors and those who have received their UIN are not eligible for the cancellation of online GST registration.

Cancellation of GST Registration Online

Taxpayers who have done their online company registration in India but have not issued any invoice after registration can cancel their registration on the GSTN portal. The steps include;

  • Login to the GST platform with username and password.
  • Next click on the 'Cancellation of provisional registration.'
  • A popup will ask that if a taxpayer has raised any tax invoice - Select- No
  • You have to submit all the forms containing related details alongside a digital signature. This would be done after the taxpayer is verified.

GST registration cancellation forms

GST REG 16: A year or two after the expiration of a taxpayer's GST registration, this form can be applied so long as the taxpayer himself asks for the cancellation of registration

GST REG 17: The GST REG 17 form is issued to the taxpayer by an authorised GST officer for the cancellation of registration. The taxpayer can ask for show cause as to why the registration should not be cancelled.

GST REG 18: A reply is sent to the taxpayer who must respond to the show cause notice within a seven day period explaining why the cancellation of registration should be safeguarded.

GST REG 19: The GST REG 19 form is used by the GST officer to issue a formal order for the cancellation of GST registration. The order for sending the notice us under a 30-day duration from the date of application.

GST REG 20: when the GST officer is satisfied with the show cause notice he can direct for the revoke of any proceedings towards the cancellation of the registration, and he should enforce the order entrenched in Form GST REG 20.

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