FAQs on cancellation of registration under GST
Q.1 What are the circumstances under which a registered Taxpayer can file for cancellation of GST registration?
Ans: A registered Taxpayer can file for cancellation of GST registration on the occurrence of any of the following events:
- Discontinuance of business or closure of business.
- Taxable person ceases to be liable to pay tax.
- Transfer of business on account of amalgamation, merger, de-merger, sale, leased or otherwise.
- Change in constitution of business leading to change in PAN.
- Registered voluntarily, but did not commence any business within specified time.
- Taxable person no longer liable to be registered under GST Act.
Q.2 Who all can file for cancellation of GST registration?
Ans: The following can file for cancellation of GST registration:
- Existing Taxpayer
- Migrated Taxpayer whose application for enrolment has been approved
- Migrated Taxpayer who has not filed any other form after filing of application for enrolment
Q.3 From where can I file for cancellation of GST registration?
Ans: Application for GST registration can be filed from the GST Portal, after logging in.
The path is Services > Registration > Application for Cancellation of Registration.
Q.4 Who all cannot file for cancellation of GST registration?
Ans: The following people cannot file for cancellation of GST registration:
- Persons registered as Tax Deductors / Tax Collectors
- Persons to whom UIN has been allotted
Q.5 What is the pre-condition for cancellation of GST registration in case of amalgamation / merger / change in constitution of business?
Ans: In case of amalgamation / merger / change in constitution of business, the new entity (i.e. transferee entity) must be registered with the tax authority, and must have a valid GSTIN at the time of filing for cancellation of GST registration by the old amalgamated / merged / transferred entity.
Q.6 What is the implication of tax payable on stock while filing for cancellation of GST registration?
Ans: While filing the application for cancellation of GST registration, the Taxpayer needs to fill the value of stock and corresponding tax liability on the stock, and accordingly offset the liability (tax payable) from Electronic Cash Ledger / Electronic Credit ledger equivalent to the credit of input tax in respect of inputs hold in stock and inputs contain in semi-finish goods or finished goods hold in stock or capital goods or plant and machinery, on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribe.
In case of capital goods or plant and machinery, the person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery, whichever is higher.
In case of Nil or no amount to be entered by Taxpayer in value of stock and tax payable section, the Taxpayer can still submit the form.
Q.7 Why is the Submit button in form for cancellation of GST registration not getting active despite filling it out?
Ans: The Submit button gets activated once all the mandatory fields (other than signatures) are filled. Please check all the mandatory fields carefully and provide information for any field that you might have missed.
Q.8 What is the duration within which Taxpayers need to file for cancellation of GST registration?
Ans: Taxpayers need to file for cancellation of GST registration within 30 days from the date from which registration is liable to be cancelled, in case of voluntary cancellation.
Q.9 Is there any limitation on filing for GST registration by Taxpayers who had registered voluntarily?
Ans: In case a Taxpayer has taken voluntary registration in GST regime, he cannot file application for cancellation of registration before the expiry of one year.
Q.10 Can I file for amendment of Core fields after applying for cancellation of GST registration?
Ans: No. Once you have submitted the application for cancellation of registration, and ARN has been generated, you will not be allowed to file for amendment of Core fields.
Q.11 Can I file for amendment of Non-Core fields after applying for cancellation of GST registration?
Ans: Yes. Once you have submit the application for cancellation of registration, and ARN has been generated, you can file for amendment of Non-Core fields.
Q.12 I was issued a temporary-ID by Suo Moto registration. Can I file for cancellation of this GST registration?
Ans: No. You cannot file for cancellation of Suo Moto registration. However, you can file an appeal against the issuance of Suo Moto registration to you. At the appropriate forum, as provided in law.
Q13. What are the forms use to cancel GST registration?
Ans: Following forms are available-
- GST REG 16: applicable when the taxpayer himself applies for the cancellation of registration
- GST REG 17: An authorized GST officer can provide the notice of show cause/cancellation to the registered taxpayer and its business entity
- GST REG 18: The show cause notice can be reply by the means of furnished GST REG 18 form under the specified time period stated
- GST REG 19: The GST REG 19 form is for the usage of GST officer for issuing a formal order for the cancellation of GST registration
- GST REG 20: The show cause notice when satisfied by the GST officer can direct for the revoke of any proceedings towards the cancellation of the registration
Disclaimer: Author of this write up intends to impart the knowledge of the amendment made by the Government regulatory. And step taken to ease the compliance. Author is nowhere liable for any damage or indirectly and it is advisable to the viewers to consult their professional expertise to seek the advice.