What is the Checklist Required for Cancellation of GST Registration

If registered for GST in India, you may cancel your registration anytime by contacting the GST registration authority in India.

The Goods and Services Tax (GST) is a value-added tax that was introduced in India in 2017. It is levied on the supply of goods and services at a national level and replaces several indirect taxes previously levied by the central and state governments. GST is charged at different rates depending on the good or service supplied. If registered for GST in India, you may cancel your registration anytime by contacting the Cancellation of GST registration authority in India.

Under the GST regime, all businesses are required to register for GST if they exceed the threshold limit of turnover. Once registered, businesses are required to file monthly, quarterly, or annual GST returns, depending on their turnover. In addition, goods and services exempt from GST are still required to be registered for GST.

Cancellation of GST Registration

There can be various reasons for cancelling your GST registration. Some common reasons are:

1. You can cancel your GST registration if your business turnover is below the threshold limit of Rs 20 lakhs (Rs 10 lakhs for NE and hilly states).
2. If you have ceased your business operations, you can cancel your GST registration.
3. If you have taken voluntary registration and now wish to cancel it, you can do so by filing the appropriate application with the concerned authority.
4. If your business is registered under the composite scheme, you can cancel your GST registration on ceasing to be eligible for the scheme.
5. If you have taken registration in error or misrepresented facts, you can cancel your GST registration.
6. If your business is registered under the wrong category (e.g., as a manufacturer when you are only a trader), you can cancel your GST registration.
7. If you have been involved in fraudulent activities, your registration can be cancelled.
8. If you have not filed your GST returns for six months, your registration can be cancelled.
9. If you have not paid your GST dues for three months, your registration can be cancelled.
10. If the proper officer has reasons to believe that you are not carrying out any business activity, your registration can be cancelled.

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There Are Different Forms to Be Filled at Different Times

Taxpayers or individuals use Form GST REG-16 to cancel the registration

• Form GST REG 17 is used to send show-cause cancellation notices.
• Form GST REG-18 is used if a Show Cause Notice answer is required.
• Form GST REG-19 must be used to submit an order for dissolution.

• Form GST REG-20 must be used to order the suspension of the cancellation procedures.
• Form GST REG -21 is used to submit your request to rescind the cancellation.
• Form GST REG-22 must be submitted when the order revocation of Cancellation of GST Registration is issued.

It is required that the following checklist be completed before cancellation of Goods and Services Tax (GST) registration:

1. All tax returns must be filed and up to date
2. All tax debts must be paid in full
3. There should be no pending audits or investigations
4. All GST-registered premises should be vacated
5. Goods and services tax should be cancelled with all relevant authorities

It is important to note that the registered person can only cancel Goods and Services Tax registration. Therefore, if you are no longer registered, you will need to contact the newly registered person to arrange for GST cancellation.

Conclusion

These are the key steps and documents required for cancelling your GST registration in India. Make sure you have all your ducks in a row before starting the process, as it can be quite complicated. Vakilsearch can help you with any questions you may have along the way.