GST – GST FAQ 3rd Edition – December, 2018 – 03.2 – 3.2 Cancellation of Registration Q 53. Whether Cancellation of Registration Certificate is permissible? Ans. Yes. Section 29 of the CGST Act, read with rule 20 of the CGST Rules provides that a taxpayer can apply for cancellation of registration in FORM GST REG-16 in the following circumstances: Discontinuance of business or closure of business; Transfer of business on account of amalgamation, merger, de-merger, sale, lease or otherwise; Change in constitution of business leading to change in PAN; Taxable person (including those who have taken voluntary registration) is no longer liable to be registered under GST; Death of sole proprietor; Any other reason (to be specified in the application) Application in FORM GST REG-16 has to be submitted within a period of 30 days of the occurrence of the event warranting the cancellation . Q 54. What if the period of 30 days of the occurrence of the event warranting the cancellation is over? An
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erson to pay tax and other dues or to discharge any obligation under this Act or the rules made thereunder 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. Q 57. What are the obligation of a registered person applying for cancellation? Ans. As per Section 29(5) of the CGST Act, read with rule 20 of the CGST Rules, the taxpayer seeking cancellation of registration shall have to pay, by way of debiting either the electronic credit or cash ledger, the input tax contained in the stock of inputs, semi-finished goods, finished goods and capital goods or the output tax payable on such goods, whichever is higher. As per section 45 of the CGST Act, every registered person whose registration is cancelled needs to file a final return in GSTR-10 with in three months of cancellation. The requirement to debit the electronic credit and/or cash ledger by suitable amounts should not be a prerequisite for app
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tion may be cancelled with retrospective effect by the proper officer. (Section 29(2) (e)) Q 60. What is suspension of registration? Ans. Section 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for Suspension of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. (This would be brought into force from the date law amendment is notified) Q 61. Can cancellation of registration order be revoked? Ans. Yes, but only in cases where the initial cancellation has been done by the proper officer suo moto, and not on the request of the taxable person or his legal heirs. A person whose registration has been cancelled suo moto can apply to the proper officer for revocation of cancellation of registration within 30 days from the date of communication of the cancellation order. The proper officer may wit
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