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Things to know
An overview
GST cancellation means the person will not be a registered person in GST anymore. Also, the person need not pay GST or claim input tax credit (ITC) and not even required to file GST returns.
The cancellation of GST can either be initiated by the GST Officer on his own motion or the registered person can apply for cancellation of their registration.
Whenever the registration has been cancelled by the GST department there is an option for the taxpayer for revocation of the GST cancellation. On cancellation of the registration, the Registered Person has to file a Final Return.
Cancellation can be applied by the registered person.
Cancellation by the proper officer, when the officer believes it as right to make it stand unregistered
Cancellation request by legal heirs in case of taxpayer’s death
Particulars |
Related ITC |
Output Tax Payable |
Higher of the two shall be payable |
||
Inputs of Stock |
ITC availed on such input |
Output tax payable on it |
Capital Goods Underlying |
Reduced ITC |
Output tax payable on it |
Note: The above-calculated amount can be paid through debit in the e-credit ledger or e-cash ledger.
After finalisation of cancellation proceedings, The GSTIN status will change from ‘proceeding for cancellation initiated’ to ‘inactive’.
GST cancellation by Taxpayers
Situations where Cancellation of Registration applied by Registered Party
GST cancellation by Department
Situations where Cancellation of Registration done by GST Officer:
Application for cancellation of GST registration is to be made in Form GST REG-16 on the GST portal within 30 days of the “occurrence of the event warranting the cancellation.”
Mandatory details to be filled in application –
Particulars |
Related ITC |
Output Tax Payable |
Higher of the two shall be payable |
||
Inputs of Stock |
ITC availed on such input |
Output tax payable on it |
Capital Goods Underlying |
Reduced ITC |
Output tax payable on it |
In case of merger or transfer of entity, particulars of registration of entity in which existing business is amalgamated, merged or transferred (attachment of a copy of transfer deed) has to be given.
Details of last filed by the person along with ARN number.
After filling in all the required information, submit the application by using one of the below-mentioned methods:
Note: Every registered entity whose registration has been cancelled after acceptance from the proper officer shall file a final return in Form GSTR-10, within three months of the effective date of cancellation or order of cancellation, whichever is later.
Revocation of Cancellation of Registration
For revocation of cancellation of registration, the taxpayer has to file Form GST REG-21 online over GST Portal within 30 days from the date of order of cancellation.
In accordance with Rule 23, all returns due till the date of such cancellation are required to be furnished before filing of the application for revocation.
If a person has received a notice in Form GST REG-23, then he should file a reply online to the department in Form GST REG-24 within 7 working days from the date of service of notice in Form GST REG-23.
The GST officer either revoke the cancellation of registration or reject the application, provided rejection can’t be done unless the applicant has been given an opportunity of being heard.
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