Process for cancellation of GST registration

Cancellation of GST registration is a process of de-registering a business entity from the Goods and Services Tax (GST) system. GST registration is mandatory for businesses that have an annual turnover exceeding a certain threshold limit.

A GST registration can be cancelled for various reasons, including:

1. Closure of business operations.

2. Change in business ownership or structure.

3. Change in the nature of business activities.

4. Non-compliance with GST regulations.

5. Transfer of business ownership.

To cancel the GST registration, the business entity must file an application in the prescribed form (Form GST REG-16) on the GST portal. The application for cancellation of GST registration must be filed within 30 days from the date on which the cancellation of registration is required.

Once the application is filed, the GST officer may request additional information or documents for processing the application. If the officer is satisfied that all the conditions are met, the GST registration will be cancelled within a period of 30 days from the date of application.

Before the GST registration is cancelled, the business entity must file all the pending GST returns and pay any outstanding taxes, interest or penalties before the cancellation is effective.

The process for cancellation of GST registration involves the following steps:

1. Log in to the GST portal: The first step is to log in to the GST portal using the registered user ID and password.

2. Go to the Services menu: Click on the “Services” tab and then select “Registration” from the drop-down menu.

3. Choose the Cancellation of Registration option: Under the “Registration” tab, select “Application for Cancellation of Registration” option.

4. Fill in the Form GST REG-16: Fill in the Form GST REG-16 with all the required details, such as the reason for cancellation, the date from which cancellation is required, and the details of the authorized signatory.

5. Submit the application: After filling in the details, submit the application along with the required supporting documents.

6. Follow up on the application: Once the application is submitted, it will be verified by the GST officer. In case of any deficiencies, the officer may request additional documents or information. The applicant must respond promptly to any such requests to avoid any delay in processing the application.

7. Receive the cancellation order: If the GST officer is satisfied with the application and supporting documents, he/she will issue an order for cancellation of GST registration. The order will be issued within a period of 30 days from the date of application.

The author is a GST and Income Tax Practitioner and can be contacted at 9024915488.