GST Registration
Cancellation
Quick Contact
Documents Required
- GST Identification Number (GSTIN)
- Digital Signature
- Export Details (if applicable)
GST Registration Cancellation
Cancellation of GST registration can be initiated by the taxpayer, a legal heir in case of the death of the taxpayer, or by the GST authorities under certain circumstances. Once the GST registration is canceled, the taxpayer is no longer liable to collect or pay GST and file GST returns. However, cancellation doesn’t absolve the taxpayer from paying any outstanding tax liabilities.
Reasons for GST Registration Cancellation
Voluntary Cancellation:
Ceased Operations: The business has ceased to operate or the taxpayer no longer requires GST registration.
Turnover Below Threshold: The business turnover falls below the mandatory registration threshold and is no longer liable to be registered under GST.
Change in Business Constitution: Changes in business structure such as conversion from a proprietorship to a partnership, merger, or transfer of business.
Cancellation by GST Authorities:
Non-compliance: Failure to comply with GST rules, such as not filing GST returns for a specified period, can lead to cancellation by authorities.
Fraudulent Activities: Involvement in fraudulent activities like issuing fake invoices or not conducting business at the declared place of business.
Non-commencement of Business: If the business has not commenced operations within six months of registration.
Legal Heirs:
In the event of the death of the sole proprietor, the legal heir may apply for the cancellation of the GST registration.
Documents Required
Filing a Letter of Undertaking (LUT) under GST is a streamlined process with minimal documentation, as it is primarily based on self-declaration. However, the following details and documents are typically needed:
GST Identification Number (GSTIN):
The unique identification number provided to the registered taxpayer under GST.
Details of the Authorized Signatory:
Name, designation, and contact details of the person authorized to sign and submit the LUT on behalf of the company or business.
Export Details (if applicable):
Previous year’s export turnover details (for existing exporters).
Estimated export turnover for the current financial year.
Digital Signature Certificate (DSC) or Electronic Verification Code (EVC):
A DSC is required if you are a company or an LLP. For others, an EVC can be used to sign the LUT.
Declaration in the LUT Form:
The LUT form includes a declaration where the exporter agrees to comply with the GST laws. No separate document needs to be uploaded, as the declaration is part of the online filing process.
GST Registration Cancellation Process
1. Login to the GST Portal
- Visit the official GST portal (www.gst.gov.in).
- Use your GST Identification Number (GSTIN) and password to log in.
2. Navigate to Cancellation Section
- Go to the “Services” tab.
- Under “Registration,” click on “Application for Cancellation of Registration.”
3. Fill Out the Application Form (Form GST REG-16)
- Reason for Cancellation: Select the appropriate reason for cancellation from the drop-down menu.
- Details of Inputs/Capital Goods: Provide details of any inputs, semi-finished, finished goods, and capital goods held on the date of cancellation. The taxpayer may need to pay an amount equivalent to the input tax credit (ITC) availed on these items.
- Outstanding Liabilities: If there are any outstanding GST liabilities, they must be cleared before the cancellation is processed.
4. Upload Supporting Documents
- Proof of Business Closure: Documents like dissolution deeds, business closure certificates, or death certificates in case of the proprietor’s death.
- Latest GST Returns: Copies of the latest GST returns filed.
- Declaration: A declaration stating that the taxpayer has not transacted business since the effective date of cancellation.
5. Submit the Application
- Review the details entered in the application.
- Digital Signature Certificate (DSC) or Electronic Verification Code (EVC): Sign the application using a DSC or EVC.
- Submit the application for cancellation.
6. Approval and Cancellation Order
- Once submitted, the application is reviewed by the GST authorities.
- If the authorities are satisfied with the reasons and documentation provided, they will issue a cancellation order in Form GST REG-19 within 30 days of the application.
7. Post-Cancellation Compliance
- Final GST Return (GSTR-10): File a final return within three months of the cancellation date, detailing the closing stock and any liabilities arising on the cancellation.
- Tax Liability Clearance: Ensure all tax liabilities, including interest and penalties, are paid.
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