How can I cancel my GST registration?

GST (India)
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cancellation

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As per Sec 29 of the CGST Act, 2017, cancellation of GST registration can be initiated by

  • The proper officer (Suo Moto) or
  • A Registered Person (Voluntary Cancellation)

Full provisions regarding the circumstances under which a proper officer or registered person can initiate cancellation of registration can be referred to in the links below.

To obtain cancellation of GST registration voluntarily, the following steps needs to be followed.

Application for cancellation

Subject to the conditions mentioned under Section 29, every registered person under GST who wants to cancel the registration shall submit an application in Form GST REG-16: “Application for Cancellation of Registration” through the GST portal.

The form should furnish the following details within a period of 30 days as per Rule 20 of the CGST Rules, 2017.

  • Details of inputs held
  • Details of finished goods held in stock
  • Details of capital goods held in stock
  • Liability to be discharged and
  • Any other required details.

On successful filing of the application for cancellation of registration, the system will generate the ARN and display a confirmation message.

The GST Portal will also send a confirmation message to the registered mobile phone number and e-mail ID.

The step-by-step procedure for filing Form GST REG-16 can be referred in the below link

Suspension

  • As per Rule 21A of CGST Rules, 2017, where a registered person has applied for cancellation of registration under Rule 20, the registration shall be deemed to be suspended from

    • the date of submission of the application or

    • the date from which the cancellation is sought, whichever is later,

  • During the period of suspension, the registered person shall not make any taxable supplies and is also not required to furnish any return.

Order of Cancellation

The proper officer shall issue an order in FORM GST REG-19: Order of Cancellation within a period of thirty days from the date of the application submitted under Rule 20.

The order specifies certain conditions to be fulfilled by the registered person, which includes

  • Furnishing all pending returns till date
  • Along with discharging all tax liabilities, including late fees or interest, if any.

Final Return

  • After fulfilling the above conditions, the registered person is required to furnish the final return in GSTR 10 within three months of the order in FORM GST REG-19.
  • GSTR 10 is the last return filed after cancellation of GST registration.
  • Its main purpose is to report
    • Closing stock
    • Input tax credit reversal
    • Tax liabilities to settle outstanding dues

Consequences of not filing GSTR 10 within 3 months

  • Late fee of ₹200 per day
  • May receive GSTR 3A notice to be filed within 15 days
  • Followed by assessment
  • Legal action
  • Potential recovery of dues.

Thus, GST registration can be cancelled by following the prescribed procedure, ensuring compliance with return filing and payment of liabilities.

Source Links:

Sec 29 : taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter6/section29_v1.00.html

GST REG 16 : Cancellation of Registration