APPLICATION FOR CANCELLATION

The registration provided for GST can be cancelled for the following reasons.

1) One of the common reasons for cancellation of registration is a person who registered, but is not liable to be registered under the GST Act.
2) Change in nature of the business.
3) The person who is paying tax under the composition levy did not furnish returns for 3 consecutive tax periods.
4) Registration has been done by means of fraud, suppression of facts or by willful misstatement.
5) Any person filing voluntary registration under sub-section (3) of section 25 did not start business within months from the date of registration.

Who can cancel the registration?

1) The cancellation of the GST registration can be initiated by the department for some particular reason which you would be informed of. A provision has been made for revocation of registration cancellation.
2) Registered persons can also apply for cancellation of their registration.
3) When a person registered for GST dies, their legal heirs can also apply for cancellation.
4) When a business or company undergoes an acquisition, merging or death of the proprietor, amalgamated with another legal entity, or discontinued.

Procedure for cancellation:

1) A person registered under any existing laws, but now is not liable to be registered under GST Act, is supposed to submit an application electronically by EOY, in FORM GST REG-29 at the common portal for cancellation of registration granted to him. SI of Central Tax Cancellation of Registration for GST 12 GST FLYERS shall thereafter conduct such an inquiry as deemed fit and cancel the said registration.
2) Cancellation of registration under the State GST or Union Territory GST Act, shall be considered as a cancellation of registration under the Central GST Act.
3) In the event that the SI of Central Tax has reason to think that the registration of the person is liable to be cancelled, a notice will be sent to such a person in FORM GST REG-17, requiring him to show cause and reason, within a time-slab of seven working days from the date of notice, as to his registration shall not be cancelled.
4) The reply to the cause notice issued has to be proposed by the registered person in FORM REG– 18 within a period of 7 working days.
5) If the reply to the cause notice is found to be valid and proper, the SI of Central Tax will stop the proceedings and pass the order in FORM GST REG –20.
6) When person submits application for cancelling his registration does not stand liable to be registered or his registration is liable to be cancelled, an order will be issued by the SI of Central Tax in FORM GST REG-19, within a period of thirty days from the date of application or, the date of the reply to the cause issued for, cancel the registration, with effect from a date which has to be determined by him and notify the taxable person, asking him to pay arrears of any tax if any, interest or penalty.
7) The registered person should pay an amount by debit in the electronic credit ledger or electronic cash ledger, which is equivalent to the credit of input tax with respect to input which is held in stock and capital goods or plant and machinery on the day there-itself preceding the date of such cancellation or output tax payable on such goods, whichever is more.