GST Cancellation / GST Surrender
GST Cancellation / GST Surrender is the process of closure of GST Number, it is required in closure of business. Sometimes GST Officer carries out GST Cancellation / GST Surrender if GST Return was not filed for consecutive periods.
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GST Cancellation / GST Surrender can initiate by three modes:
GST Cancellation / GST Surrender based on the application made by Tax Payer:
There are various reasons in which a tax payer can file application for cancellation of registration, these are:
- On account of discontinuance or closure of business.
- On account of transfer / amalgamation / merger of business to another entity.
- Due to change in the constitution of business leads to generation of another PAN card.
- On account of not crossing the threshold limit and the registration is not compulsory.
A registered tax payer can make an application for GST cancellation / GST surrender online through GST portal wherein there is option given to taxpayer for application for GST Cancellation. A Taxpayer can file GST cancellation at any point of time wherein any condition establishes for not seeking GST registration any further, a registered tax payer need to mention the reason for cancellation in the application.
In case the registered tax payer has any input on the stock held by it or any liability for GST then simple application for GST cancellation cannot be filed and a detailed application in form GSTR-16 need to be filed specifying the details of Input of GST and creating the liability and paying the same through the cash ledger.
Post application of GST Cancellation, the tax officer will scrutinize the application and may send a show cause notice seeking further details regarding GST in form GSTR-17, the tax payer need to give proper reply in GSTR-18 within 7 days of receipt of notice in form GSTR-17. If the tax officer considers the reply of tax payer as proper and appropriate, then he will issue cancellation order in GSTR-19.
Cancellation of GST Registration by Tax Officer
There are various reasons in which a tax officer can proceed for application for cancellation of registration, these are:
- Tax payer has contravened the provision of the Act or rules made there-under
- Tax payer (other than composition scheme) has not furnished returns for continuous period of six months.
- Tax payer who opts for composition scheme has not furnished returns for three consecutive tax periods.
- Tax payer under voluntary registration has not commenced business within six months.
- Tax payer has obtained GST registration by means of fraud, wilful misstatement or suppression of facts.
Procedure for cancellation of registration by Tax officer is initially a show cause notice is issued in form GSTR-17, registered tax person need to provide reply within 7 business days in form GSTR-18, finally order for cancellation of registration is passed in Form GSTR-19.
Revocation of Cancellation
Once the GST registration is cancelled by tax officer, it can be revoked on the request of tax payer. The revocation request can be made by tax payer within 30 days of cancellation of GST Registration, in form GSTR-21 by mentioning reason for revocation of GST Registration.
If the GST Registration is cancelled by the reason of non furnishing of return, then revocation of GST registration is not available till the registered tax payer furnishes all pending return along-with deposit of GST Liability, Interest and late filing fees.
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your GST Cancellation / GST Surrender and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfil in order to carry out GST Cancellation / GST Surrender economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.