Cancellation of GST Registration
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 12-3-2019
Cancellation of Registration is more important than registration of GST. Reason is simple that all are doing registrations of GST and process is simple but on the other way Cancellation is more complicated because only few have come across this situation and not aware of the steps and form to be filed for cancellation.
** ₹ 20 Lacs or ₹ 40 Lacs .
*** in case of Voluntary Registration made under GST, can be made only after one year of the date of registration.
From the above chart it is clear that cancellation can be initiated by Tax Payer → Tax Officer → Legal heir in case of Death of Taxpayer.
Reason for cancellation:
The registration can be cancelled for the following reasons:
* A person registered under any of the existing laws, but who is not liable to be registered under the GST Act;
The business has been discontinued, transferred fu
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ession of facts.
Procedure for cancellation:
i. The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under Central Goods and Services Tax Act.
ii. In the event, the Superintendent of Central Tax has reasons to believe that the registration of a person is liable to be cancelled, a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled; will be issued.
iii. The reply to the show cause notice issued has to be furnished by the registered person in FORM REG-18 within a period of seven working days.
iv. In case the reply to the show cause notice is found to be satisfactory, the Superintendent of Central Tax will drop the proceedings and pass an order in FORM GST REG -20.
v. However, when the pe
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In case of capital goods or plant and machinery, the taxable 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 under section 15, whichever is higher.
viii. The cancellation of registration shall not affect the liability of the person to pay tax and other dues for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
Final Returns:
When the registration of a registered person other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the composition scheme or TDS/TCS; has been cancelled, the person has to file a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, electronically in FORM GSTR-10 throu
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terest, penalty and late fee in respect of the said returns.
iii. On examination of the application if the Proper Officer ( Assistant or Deputy Commissioners of Central Tax) is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, then he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.
iv. However, if on examination of the application for revocation, if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is not satisfied then he will issue a notice in FORM GST REG-23 requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24.
v. Upon receipt of the
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