Goods and Services Tax (GST) is applicable in India from 1st July 2017. Under the new GST regime, nearly 1.4 crore businesses in India have obtained GST registration. All entities having GST registration are required to file GST returns every month. GST return filing is mandatory for all entities having GST registration, irrespective of business activity or sales or profitability during the return filing period. Hence, even a dormant business that obtained GST registration must file GST return.
Not using your GST Registration or closed down your business? You need your GST Cancellation or Surrender the GST Registration
It usually takes several months for GST Officer's Approval, if they find everything in order.
- 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
- Individuals who want to cancel GST Registration
- All entities who want to cancel GST Registration
- Purchase of Plan
- Upload documents
- Filing of application
- Get Application Code
- Acknowledgement of GST Return of the preceding month
- GST Login Credentials
? Frequently Asked Questions
Every person who was registered under old laws of taxation like Service Tax, Sales Tax, Excise, etc. had to mandatorily 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.
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)
The submitted application is incomplete.
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.
What is GSTR 10 ?
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.
What are the consequences of not filing GST Cancellation ?
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.