What Are the Documents Required for GST Retraction?

This article will guide you through the documentation needed for Goods and Services Tax registration Retraction.

Documents Required for Goods and Services Tax Retraction, Goods and Services Tax registration neutralize generally implies that taxpaying residents of India can no longer be considered registered individuals. As a result, that person will be unable to collect or pay any Goods and Services Tax or even claim for the credit of input tax; thus, they would not file any returns. 

Outcomes of Termination of Goods and Services Tax Registration

Here are two possible outcomes of the Termination of the registration of Goods and Services Tax –

• Goods and Services Tax can not be paid by the taxpayer anymore.
• In some businesses, Goods and Services Tax enrollment is considered a mandatory option. However, if Goods and Services Tax registration is still Termination and the company is running, it will be viewed as a crime under Goods and Services Tax, and a huge penalty can be applied to the offender.   

What is Goods and Services Tax Retraction?

The Goods and Services Tax Retraction of Termination registration implies that the rectification has been done to the application form, and the registration of Goods and Services Tax is still useful. But remember, this is only applicable when the officer of Goods and Services Tax has forcibly Termination the gstin registration of a taxpayer. From the Termination order date, that particular taxable individual can apply again to the office of GST cancellation within 30 days. 

What is the Strategy for the Termination of GST Registration?

For many people, the Termination and registration of Goods and Services Tax is a nightmare. There are many steps involved in such processes. Be careful while you file for Termination; if you miss any required step, you will have to start the process from the beginning. 

You will find it easy if you have good knowledge of how to make a Termination. There is no rocket science for the Termination process until you do it right. However, a single error can cost you time and money. If you still do not understand any step in the Termination process, we have further provided every detail. 

Format of Letter of Application for GST Registration Termination 

You can get the letter format for Termination Goods and Services Tax registration from the official website or online portal of Goods and Service Tax. The taxpayer must file their application in the REG-16 form on the official portal of GST within 30 days from the event date that sanctions your registration Termination order. 

In some situations where getting the precise event date is somewhat tough, the deadline for applying can be interpreted in liberal means. In such a case, the application can not be rejected on a deadline’s apparent contravention. 

What is the Procedure for the Termination of Goods and Services Tax Registration by the Taxpayer?

The registration Termination is a lengthy but simple process until followed correctly. Following are the steps to complete the Termination of  registration:

1. The main and initial step for the Termination of registration by any taxpayer is to go to the online portal of the official website of Goods and Services Tax. Login into your account with the help of your username and password
2. After successful login, click on the option of ‘Services’, and then you will find another option of ‘Registration’
3. Select the ‘Registration’ tab and choose ‘Application for Termination of Registration.
4. You will get a REG-16 Form where you are asked to provide basic information, Termination details, verification, and other details

Also, for future reference, you will be asked to put in some information about your addresses and fill in the details of your bank accounts. Or you can click on the option of ‘corresponding address is the same as the permanent address, or you can copy the provided address details. After filling in all these details, click the ‘Save and Continue option

1. Once you complete these steps, the Termination details tab will be active. You will be asked to fill in some necessary sections under the main details tab
2. Now, you are required to provide some basic information. First, you have to select the options available in the option ‘Reasons for Termination’ as depicted below: 

• Business Constitution change resulting in the PAN Card Change;
• Expired of being accountable for Goods and Services Tax payment;
• Business closure or discontinuance; 
• Business transfer owing to the amalgamation, merger, sale, leased, de-merger or differently;
• Only proprietor’s death;
• Others  

1. After selecting the appropriate reason, you must select the date from which you want to cancel the registration. Then enter GSTIN, and click on the Save and Continue option
2. As soon as you complete the details, the verification tab will open. Here you are needed to provide some details of verification
3. The last step is clicking on the option of ‘Submit with DSC’ or ‘Submit with EDC,’ you have to finish your application. You will get an OTP on your provided number on the latter option. Enter this OTP and submit it. At the same time, the former option needs its submission along with your digital signature
4. After your submitted application has been accepted and verified by the Goods and Services Tax Officer, he will be able to pass a registration Termination order via Form REC-19. This order will be passed within 30 days of filling out the application

The tax officer will infer the Termination order, taking effect from that particular date, and the officer will notify the applicant about the same.

Necessary documents for Goods and Service Tax Termination 

You will require many forms to help you apply for registration Termination. These document details are given below:

• Form GST REG-16: The taxpayer is supposed to have this document to apply for Termination.
• Form GST REG-17: This form requires a cause notice for the Retraction.
• Form GST REG-18: This document is needed to reply to the notice.
• Form GST REG-19: It is required during the period of order dissolution.
• Form GST REG-20: This document of Termination entails the order to decline the proceedings of Termination.
• Form GST REG-21: It is required at the moment of Retraction.
• Form GST REG-22: This document is needed for a Retraction order of registration Termination.

Knowledge required while filing for the Termination of Goods and Services Tax registration

You will require the below-given information while filing an application for registration Termination in the REG-16 Form:

• Contact information, such as mobile number, email id, etc.
• Reasons for registration Termination of Goods and Services Tax
• Address of the main business site
• GSTIN
• Chosen Termination date for registration
• Information about business registration if the business unit was merged, collaborated, or transferred
• Information about the value and payable tax on the input stocks, the inputs accessible in semi-finished and finished goods, the commodity of capital plant/goods and machinery
• Facts of the return with the specific return’s ARN

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Method to check the status of Termination

The government, in the 28th conference, addressed and chaired by Shri Piyush Goyal, has proposed some amendments to the Termination process of registration. As per new amendments, the status of registration will be Termination instantly as soon as the candidate files for the Termination of registration. Therefore, Goods and Services Tax would be no liability after you have successfully filed for the Termination of Goods and Services Tax registration. 

You can track your Termination status as soon as you apply for registration Termination at your convenience. You are supposed to follow the below-given steps to track your cancellation status:

1. Visit the official online website of Goods and Services Tax. Log in with your email address and password. On the home page, click on the option ‘Services’ and then select the ‘Registration’ option in the same menu
2. After selecting the above tabs, you will see the option ‘Track Application Status’. After selecting it, it will direct you to another web page. You must click on the ‘Submission Period’ option on page
3. Now provide the details, i.e., dates of ‘From’ and ‘To’ as cited in the registration Termination form and select the option ‘Search’
4. After clicking on the search option, your screen will display an ARN associated with your filled application and the status of registration Termination. 

Eligibility for Termination registration

From following, anyone can cancel their registration:

• The taxpayer with a turnover less than the threshold value.
• Tax officer on his own accord.
• If the main and sole proprietor dies, the legal beneficiaries can cancel the registration.
• An individual who has shut down the business and is not running the business anymore.

Reasons for Termination

For Termination of registration, there can be several reasons:

• Termination of business, or complete transfer of business for reasons like amalgamation with other valid commodities, proprietor’s death, merging or other reasons;
• Any alteration in the business constitution;
• An individual is not eligible to enroll under the Act of tax if registered under any prevailing laws;
• If any individual has overstepped any existing laws of the Act or the laws made under it;
• The taxable commodity (except the one who has freely developed enrollment under sub-section (3) of Section 25 of the CGST Act, 2017) is not eligible for standing enrolled;
• Any taxpayer under the composition levy has not regularly provided returns for three continued tax intervals;
• Any registered person who has not provided the returns for six months, except the one under composition levy;
• If a voluntarily registered individual under sub-section 3 of Section 25 has not started the business within six months from the registration date;
• If anyone has collected their registration via facts suppression, wilful misstatement, or fraudulence. 

Conclusion

Nowadays, when someone starts their business, they first get their registration. However, there may come a time when you would like to cancel your registration. In this article, we have explained how you can cancel the registration. The details for different documents required for revocation of cancellation of gst registration are also provided here. However, if you still need any help, Vakilsearch experts are at your service always.