How to Cancel GST Registration [Part 1 Video Tutorial]

By | November 10, 2018
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(Last Updated On: November 10, 2018)

How to Cancel GST Registration

Video Tutorial by CA Satbir Singh  .

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  1. Whether Voluntary Registration can be Cancelled? Voluntary registration can be cancelled at any time Provisio to Rule 20 of the CGST Rules, 2017 has been omitted by the Central Goods and Services Tax (Amendment) Rules, 2018, w.e.f. 23-1-2018. Prior to its omission, the said proviso read as under “Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration

  2. Whether Registration for TDS/ TCS under GST can be Cancelled? Where, upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is satisfied that a person to whom a certificate of registration in FORM GST REG-06 has been issued is no longer liable to deduct tax at source under section 51 or collect tax at source under section 52, the said officer may cancel the registration issued under sub-rule (2) and such cancellation shall be communicated to the said person electronically in FORM GST REG-08: I Rule 12(3) of the CGST Rules, 2017 1 Note: Person Liable for TDS /TCS under GST can not apply for cancellation of GST registration. Only GST officer can do cancellation in this case after enquiry.

  3. When can GST registration be Cancelled? Cancellation ‘[or suspension] of registration The proper officer may, either on his own motion or on an application2Z filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed2, having regard to the circumstances where, (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or (b) there is any change in the constitution of the business; or (c) the taxable person, other than the person registered under sub- section (3)of section 25 [voluntary registration], is no longer liable to be registered under section 22 or section 24 [Section 29(1) of CGST Act 2017 ] Note 1: Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified. 2. Refer rule 22 of the CGST Rules, 2017

  4. Who can cancel GST registration? GST Registration Cancellation By Registered Person By GST Officer

  5. How can a registered person apply for cancellation of GST registration ? Application for cancellation of registration A registered person, other than a person to whom a registration has been granted under rule 12 (Grant of registration to persons required to deduct tax at source or to collect tax at source) or a person to whom a Unique Identity Number has been granted under rule 17, seeking cancellation of his registration under sub-section (1) of section 29 shall electronically submit an application in FORM GST REG-16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof, at the common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner: [ Rule 20 of the CGST Rules, 2017 ]

  6. When can GST registration be cancelled by GST Officer? Cancellation Ior suspension] of registration The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,- (a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or [Section 29(2) of CGST Act 2017 ] Note 1: Refer rule 21 of the CGST Rules, 2017.

  7. When can GST registration be cancelled by GST Officer? Cancellation Ior suspension] of registration The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where, (b) a person paying tax under section 10 [ Composition Scheme] has not furnished returns for three consecutive tax periods; or (c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or [Section 29(2) of CGST Act 2017 1

  8. What if person does not reply to the notice but pays GST? Cancellation of registration 1 [Provided that where the person instead of replying to the notice served under sub-rule (1) of Rule 22 for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer shall drop the proceedings and pass ain order in FORM GST-REG 20.] I Rule 22(4) of the CGST Rules, 2017 ] Note 1: Proviso inserted by the Central Goods and Services Tax (Eighth Amendment) Rules, 2018, w.e.f. 4-9-2018.

  9. When can GST registration be cancelled by GST Officer? Cancellation Ior suspension] of registration The proper officer may cancel the registration of a person from such date including any retrospective date, as he may deem fit, where,- (d) any person who has taken voluntary registration under sub-section (3)of section 25 has not commenced business within six months from the date of registration; or [Section 29(2) of CGST Act 2017 ]

  10. When can GST registration be cancelled by GST Officer? Cancellation Ior suspension] of registration The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,- (e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: [Section 29(2) of CGST Act 2017 ]

  11. When can GST registration be cancelled by GST Officer? Registration to be cancelled in certain cases The registration granted to a person is liable to be cancelled, if the said person, (a) does not conduct any business from the declared place of business; or (b) issues invoice or bill without supply of goods or services in violation of the provisions of the Act, or the rules made thereunder; or (c) violates the provisions of section 171 [Anti-profiteering measure 1 of the Act or the rules made thereunder.] [Rule 21 of CGST Rules 2017 ] Note 1. Clauses (b) and (c) substituted for clause (b) by the Central Goods and Services Tax (Amendment) Rules, 2017, w.r.e.f. 22-6-2017. Prior to its substitution, clause (b) read as under “(b) issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder.”

  12. What GST office is required to do before canceling Registration? Cancellation ‘[or suspension] of registration Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard: [Section 29(2) of CGST Act 2017 ]

  13. How Can GST registration be Cancelled by GST Officer? Cancellation of registration Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue 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 Rule 22(1) of the CGST Rules, 2017 ]

  14. How Can GST registration be Cancelled? Cancellation of registration Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under 1I***] rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing hinm to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub section (5) of section 29. I Rule 22(3) of the CGST Rules, 2017 1

  15. When can GST registration be Suspended? Cancellation [or suspension] of registration 1 [Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed .] e engisered person, the regs may pe prescribed 1 [Section 29(1) of CGST Act 2017 ] Note 1: Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified

  16. What if GST is not paid and GST registration is cancelled? Cancellation Ior suspension] of registration The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act 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. [Section 29(3) of CGST Act 2017 ]

  17. What will happen under CGST Act if GST registration is cancelled under State GST Act ? Cancellation ‘Ior suspension] of registration 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 this Act. [Section 29(4) of CGST Act 2017 ]

  18. What will happen under CGST Act if GST registration is cancelled under State GST Act ? Cancellation Ior suspension] of registration. Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed1: [Section 29(5) of CGST Act 2017 ] Note 1: Refer rule 44 of the CGST Rules, 2017. (Manner of reversal of credit under special circumstances)

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