TAXAJ

Cancellation or Surrender of GST Number

Cancellation of GST registration simply means that the taxpayer will not be a GST registered person anymore. He will not have to pay or collect GST or claim the input tax credit and accordingly, need not file GST returns.


This is usually needed when an existing business is discontinued or merged with another or converted as per the Indian Law. With TAXAJ your GST Number is cancelled smoothly and transition is made super easy along with Post Cancellation Compliances as per the GST Law in India.

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About This Plan

Not using your GST Registration or closed down your business? You need your GST Cancellation or Surrender the GST Registration

Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

It usually takes several months for GST Officer's Approval, if they find everything in order.

Buy Now
Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Eligibility Consultation
  • Preparation of documents
  • Filing of Application for Surrender / Cancellation for 1 GSTIN
  • Filing of GSTR 10 for 1 GSTIN
  • Business Hour CA Support
Who Should Buy
  • Individuals who want to cancel GST Registration
  • All entities who want to cancel GST Registration
How It's Done

    • Purchase of Plan
    • Upload documents
    • Filing of application
    • Get Application Code
Documents Required
  • Acknowledgement of GST Return of the preceding month
  • GST Login Credentials

GST Cancellation - Surrender of GST Number Explained

All About Cancellation of GST Number

What are the reasons for Cancellation of GST Number?

GST Registration is usually cancelled under following instances -

  • The business has been discontinued
  • The business has been transferred fully, amalgamated, de-merged or otherwise disposed —The transferee (or the new company from amalgamation/ demerger) has to get registered. The transferor will cancel its registration if it ceases to exist.
  • There is a change in the constitution of the business (For example- Private limited company has changed to a public limited company)

Can GST Registration be cancelled when Turnover is less than 20 lakhs?

Every person who was registered under old laws of taxation like Service Tax, Sales Tax, Excise, etc. had to mandatory migrate to GST. Many such persons are not liable to be registered under GST.


For example, the threshold under VAT in most states was 5 lakhs whereas it is 20 lakhs under GST. However, do make sure you are not making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.

Which Form is filed for Cancellation of GST Number?

All those who cannot follow the above method must file an application for cancellation in form GST REG 16. The legal heirs of the deceased taxpayer will follow the same procedure as below.

  • Application for cancellation has to be made in form GST REG 16.
  • The following details must be included in form GST REG 16-
    • Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation of registration is applied
    • Liability thereon
    • Details of the payment
  • The proper officer has to issue an order for cancellation in the form GST REG-19 within 30 days from the date of application. The cancellation will be effective from a date determined by the officer and he will notify the taxable person

Can the Tax Officer Cancel my GST Number on its own?

The registration can be cancelled if the taxpayer-

(a) Does not conduct any business from the declared place of business OR 

(b) Issues invoice or bill without supply of goods/services (i.e., in violation of the provisions) OR 

(c) Violates the anti-profiteering provisions (for example, not passing on the benefit of ITC to customers) OR

With effect from 1st January 2021-

(d) Utilisation of ITC from electronic credit ledger to discharge more than 99% of the tax liability for specified taxpayers violating Rule 86B – with the total taxable value of supplies exceeding Rs.50 lakh in the month, with some exceptions. OR

(e) A taxpayer who cannot file GSTR-1 due to GSTR-3B not being filed for more than two consecutive months (one quarter for those who opt into the QRMP scheme) OR 

(f) Avails input tax credit in violation of the provisions of section 16 of the Act or the rules.

Procedure for Cancellation of GST Number by Tax Officer?

  • If the proper officer has reasons to cancel the registration of a person then he will send a show-cause notice to such person in form GST REG-17.
  • The person must reply in form REG–18 within 7 days from the date of service of notice why his registration should not be cancelled.
  • If the reply is found to be satisfactory, the proper officer will drop the proceedings and pass an order in the form GST REG–20.
  • If the registration is liable to be cancelled, the proper officer will issue an order in the form GST REG-19. The order will be sent within 30 days from the date of reply to the show cause.

What happens if you don't cancel the GST Number correctly?

After obtaining GST registration, if there is no business activity, the taxpayer needs to initiate GST cancellation as per the process laid out above. If the taxpayer stops filing GST returns and lets the GST registration to be cancelled by the GST department, then he or she would not  be eligible to obtain another GST registration under the same PAN.


Also, in case a GST registration gets cancelled by the Government, the taxable person would first have to apply for revocation of GST registration cancellation by paying all the late fees (which could run into lakhs) and after restoration - cancel the GST properly or continue filing GST returns. Hence, once a GST registration is obtained, it is vital for the taxpayer to monitor compliance ,and in case of no business  activity, file for cancellation of GST registration at the earliest.

In what scenario my GST Cancellation Application may not be accepted ?

In case the submitted application is Incomplete or In the event of transfer, merger or amalgamation of business, the new entity hasn’t registered with the tax authority prior to the submission of application. In these situations, the concerned Officer provides a written intimation to the applicant regarding the nature of the discrepancy. In which case, the applicant is required to respond to the same within seven days of the date of receipt of the letter, failing which the concerned  Officer may reject the application after providing him/her with an opportunity to be heard.

Anything to be done after filing Cancellation of GST Application?

Every person whose registration has been cancelled are required to file a final GST return in Form GSTR-10 within three months of the date of cancellation or the date of order of cancellation, whichever is later. This is done to ensure that the taxpayer is devoid of liabilities. It may be noted that Input Service Distributors or non-resident taxpayers who are required to pay tax under section 10, section 51 or section 52 are exempted from this provision.


If the final GST return is not filed in Form GSTR-10, the taxpayer will be issued a notice in GSTR-3A, prompting him/her to do the same within  15 days of the issue of such notice. If the taxpayer fails to comply with the notice, initiatives will be taken to assess the liability of the  taxpayer based on the information available with the concerned Officer. The assessing order will be withdrawn if the applicant files the  return within 30 days of the issue of notice.

Revocation of Cancellation of GST Number

Revocation means the official cancellation of a decision or promise. Revocation of cancellation of registration means that the decision to cancel the registration has been reversed and the registration is still valid.


This is applicable only when the tax officer has cancelled the registration of a taxable person on his own motion. Such taxable person can apply to the officer for revocation of cancellation within thirty days from the date of the cancellation order.

Procedure for Revocation of Cancellation of GST Number

    • A registered person can submit an application for revocation of cancellation, in form GST REG-21, if his registration has been cancelled suo moto by the proper officer.
    • He must submit it within 30 days from the date of service of the cancellation order at the Common Portal.
    • If the proper officer is satisfied he can revoke the cancellation of registration by an order in form GST REG-22 within 30 days from the date of receipt of the application. Reasons for revocation of cancellation of registration must be recorded in writing.
    • The proper officer can reject the application for revocation by an order in form GST REG-05 and communicate the same to the applicant.
    • Before rejecting, the proper officer must issue a show-cause notice in form GST REG–23 for the applicant to show why the application should not be rejected. The applicant must reply in form GST REG-24 within 7 working days from the date of the service of notice.
    • The proper officer will take a decision within 30 days from the date of receipt of clarification from the applicant in form GST REG-24.


    Note: Application for revocation cannot be filed if the registration has been cancelled because of the failure to file returns. Such returns must be furnished first along with payment of all dues amounts of tax, interest & penalty.   

Can the business register for GST after cancellation?

Yes, there is no restriction to taking GST registration once it has been cancelled except where it was cancelled by the tax officer.

Talk to our Expert for any further queries.