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Quick Summary:

To cancel your GST registration, log in to the GST portal and go to the ‘Services’ tab, then select ‘Registration’ and ‘Cancel Registration.’ Provide the reason for cancellation and submit any required documents. After processing, the GST authorities will confirm the cancellation and update your status. Ensure all returns are filed and dues cleared before initiating cancellation.

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How to Apply for GST Cancellation: A Step-by-Step Guide

Learn the process of applying for GST cancellation. This guide covers how to deregister or cancel your Goods and Services Tax (GST) registration due to reasons such as business closure, cessation of operations, or other circumstances that make you ineligible for GST.

Page last updated

5 May 2024

written By

Afinthrive Advisory

How to Apply for GST Cancellation: A Step-by-Step Guide

Here are some key points regarding GST cancellation :

  • Reasons for Cancellation GST registration may be cancelled for reasons such as cessation of business activities, closure of operations, transfer of business, change in constitution, turnover falling below the threshold limit, or if the taxpayer is no longer liable to register under GST.
  • Voluntary and Mandatory Cancellation GST cancellation can be either voluntary or mandatory. Voluntary cancellation is initiated by the taxpayer, whereas mandatory cancellation may be initiated by the tax authorities if they find the taxpayer ineligible for registration or non-compliant with GST laws.
  • Application for Cancellation To cancel GST registration, the taxpayer needs to apply for cancellation on the GST portal by filling out Form GST REG-16. The application should be filed within 30 days from the occurrence of the event that necessitates the cancellation.
  • Clearance of Dues Before applying for cancellation, the taxpayer should ensure the clearance of all outstanding tax dues, including filing of pending returns and payment of taxes, interest, and penalties, if any.
  • Verification and Approval Once the application for cancellation is filed, the tax authorities may verify the details and documentation provided by the taxpayer. If everything is in order, the GST registration will be cancelled, and a cancellation order will be issued.
  • Effect of Cancellation : Upon cancellation of GST registration, the taxpayer ceases to be a registered person under GST. They are no longer required to collect or pay GST on supplies, file GST returns, or comply with other GST-related obligations.
  • Consequences of Non-Compliance Failure to apply for cancellation of GST registration when required or non-compliance with the cancellation process may lead to penalties and legal consequences under GST laws.
  • Appeal Process If the taxpayer disagrees with the cancellation order issued by the tax authorities, they have the option to file an appeal with the appropriate appellate authority within the prescribed time limit.
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KEY FEATURES

  • GST Cancellation Application
  • Filing of GSTR-10 (Final Return)
FAQs

Get Answers to your most asked questions.

What is GST cancellation?

GST cancellation refers to the process of canceling the Goods and Services Tax (GST) registration of a taxpayer. Once the registration is canceled, the taxpayer is no longer liable to pay GST or file GST returns.

Who can apply for GST cancellation?

Any taxpayer registered under GST who wishes to discontinue their business or no longer qualifies for GST registration can apply for cancellation.

What are the reasons for GST cancellation?

The reasons for GST cancellation include discontinuation of business, closure of business operations, transfer of business, change in constitution, death of the proprietor or partners, or any other reason that makes the taxpayer ineligible for GST registration.

How can I apply for GST cancellation?

To apply for GST cancellation, log in to the GST portal, go to the “Services” tab, and select “Application for Cancellation of Registration.” Fill out the form with the required details, upload supporting documents, and submit the application.

What documents are required for GST cancellation?

The documents required for GST cancellation may include proof of closure of business, surrender of registration certificate, affidavit stating the reason for cancellation, NOC from partners or proprietors, and any other documents as specified by the authorities.

Is there any time limit for applying for GST cancellation?

Taxpayers can apply for GST cancellation at any time when they meet the eligibility criteria for cancellation. However, it is advisable to apply for cancellation within 30 days from the date of cessation of business to avoid penalties for non-compliance.

What happens after applying for GST cancellation?

After applying for GST cancellation, the tax authorities will verify the application and supporting documents. If everything is in order, they will approve the cancellation and issue an order for cancellation of registration. The taxpayer will be notified accordingly.

What are the consequences of not canceling GST registration?

Failure to cancel GST registration when required can lead to penalties for non-compliance. The taxpayer may still be liable to file GST returns and pay GST dues, even if they are not conducting business activities.

Can I apply for GST registration again after cancellation?

Yes, if the taxpayer intends to resume business activities in the future, they can apply for GST registration again using the appropriate procedure.