Need a GST Registration Cancellation? We are a perfect match.

GST registration can be cancelled voluntarily if the business is dormant or does not have the necessary business turnover. Further, a GST registration can also be cancelled by a GST officer if the business is non-compliant under GST. Once GST registration is cancelled, the person or entity is no longer required to file GST returns and is not required to pay or collect GST.

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Process of GST Cancellation

📞 Get in Touch with Us

Contact us via phone, WhatsApp, or email for a free expert consultation to check eligibility and the right type of cancellation (voluntary, transfer, closure, etc.).
📄 Document Collection

We collect required documents such as GST certificate, last return copy, PAN, Aadhaar, bank details, and details of business closure or transfer.
💳 Fee Payment

Make secure payment of our professional charges via UPI, bank transfer, or online payment gateway.
🔍 Eligibility Check & Ledger Reconciliation

We verify if all GST returns are filed, dues are cleared, and electronic ledgers are reconciled to ensure a smooth cancellation process.
📝 Application Preparation (Form GST REG-16)

Our team fills the cancellation application with accurate reasons, date of cancellation, and required disclosures.
📤 Submission & ARN Generation

We submit your application on the GST portal, attach DSC or EVC as applicable, and generate the ARN for your tracking.
📬 Approval & Cancellation Order (Form REG-19)

Once processed, you receive the Order of Cancellation from the department along with confirmation on the portal.

Key consequences

Cease to Collect GST

Once GST registration is cancelled, a business can no longer collect GST from its customers. The business must update all billing and invoicing systems to ensure GST is not charged after the effective date of cancellation.

No Input Tax Credit (ITC)

Purchases made after the cancellation of GST registration are not eligible for ITC. Additionally, the taxpayer must pay an amount equivalent to the ITC for goods held in stock, inputs in semi-finished or finished goods, and capital goods under certain conditions as of the day immediately preceding the date of cancellation.

Filing of Final Return

The taxpayer must file a final return using Form GSTR-10 within 3 months from the date of cancellation or the date of the cancellation order, whichever is later.

Compliance and Record-Keeping

Even after cancellation, businesses must maintain financial records, accounts, and documents for a period of 6 years from the date of cancellation. This is necessary for any future audits, investigations, or compliance checks by tax authorities.

Legal Implications

Failure to comply with GST law provisions after cancellation, such as not filing the final return or not paying the amount due on ITC reversal, can lead to penalties and legal action by GST authorities.

Impact on Business Operations

GST registration cancellation can disrupt regular business operations. Reapplying for GST registration after cancellation involves a fresh application and scrutiny by tax authorities.

Refunds

Eligible taxpayers may receive refunds for any excess GST paid after cancellation, provided they apply for a refund within the prescribed time frame.

Cancellation of All Registrations on PAN:

If a business operates in multiple states or has multiple business verticals within a state, cancellation of GST registration in one state or for one vertical may cancel all GST registrations associated with the same PAN across India.

Pending returns

File all the pending GST returns up to the revocation date. It is essential to fulfil your tax obligations and provide accurate financial information before closing your GST registration.

GST

GST Cancellation Procedure

GST Registration Cancellation

When GST registration is cancelled, the person or entity is no longer identified as a GST-registered taxpayer. This termination implies that they aren’t required to gather, submit, or pay GST. Moreover, they can’t claim input tax credits, and the responsibility of filing GST returns is also lifted from them.

The Importance of Timely GST Cancellation

If no business activity occurs after acquiring GST registration, the taxpayer must begin the GST cancellation process as outlined. If a taxpayer stops filing GST returns and allows his GST registration to lapse, he cannot apply for fresh GST registration using the same PAN.

Further, if the government cancels a GST registration, the taxable person must first apply for the cancellation to be revoked by paying any late fees. Following the restoration, appropriately cancel the GST or continue filing GST returns.

As a result, once a GST registration is received, the taxpayer must keep track of compliance. Hence, if there is no commercial activity, apply for GST registration cancellation as soon as possible.

Time limit for cancellation of GST registration

The time limit for cancellation of GST registration varies depending on the circumstance that prompts the cancellation.

For voluntary cancellations, a taxpayer can apply any time after registration if they believe they are no longer liable to be registered under GST. However, for cancellations initiated by the tax authorities due to non-compliance, such as not filing returns for consecutive periods (six months for regular taxpayers), the authorities start the cancellation process automatically after the stipulated period of non-compliance.

Taxpayers must file for cancellation within 30 days of becoming aware of any circumstance warranting cancellation, such as discontinuation of business or change in the business structure.

Consequences of Cancellation of GST Registration

Criteria for GST Cancellation: Who Can Apply?

By the Taxpayer

Taxpayers who possess a GST registration can voluntarily kickstart the cancellation procedure. This might be because they deem the registration unnecessary or because they fulfil specific cancellation criteria.

By Tax Authorities:

If tax officials find any non-compliance with the rules or inconsistencies in a taxpayer’s activities or records, they have the right to cancel the GST registration. To initiate this, they can release a show-cause notice through the GST REG-17 form.

By Legal Successors:

In circumstances where a taxpayer passes away, the legal successors or heirs can put forward a request to annul the deceased’s GST registration.

Steps for Cancellation of GST Registration

Login to the GST Portal

Navigate to the GST Portal and log in using your credentials.

Apply for Cancellation

Go to the ‘Services’ tab, select ‘Registration,’ and choose ‘Application for Cancellation of Registration.’

Fill in the Details

Provide necessary details such as the reason for cancellation, date of cancellation, and value/details related to the ITC of the inventory on the date of cancellation.
If multiple businesses are registered within the same state, specify which business the cancellation is applied for.

Pay Liabilities and File Returns

Make the payment of any pending dues, including taxes, interest, or penalties.
File all pending returns up to the date of cancellation.

Verification and Submission

Verify the information submitted in the application form using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Submit the completed application.

ARN Generation

After submission, an Acknowledgement Reference Number (ARN) is generated. Use the ARN to track the status of your application.

Officer’s Review

A GST officer will review the cancellation application. If additional information is needed, they may request it through the GST portal. Respond promptly to any queries.

Issue of Cancellation Order

If the officer is satisfied, a cancellation order will be issued using Form GST REG-19, specifying the effective date of cancellation.

Filing the Final Return Post GST Cancellation

After completion of GST cancellation process, the person or entity must file a final GST return on Form GSTR-10 within three months of the cancellation date or the date of the cancellation order, whichever comes first.

GST Dues Verification

This is done to make sure the taxpayer has no GST dues pending. This provision does not apply to input service distributors or non-resident taxpayers who must pay tax under Sections 10, 51, or 52.

GSTR-10 Filing Notice

If the final GST return is not filed in Form GSTR-10, the taxpayer will receive a notice in Form GSTR-3A requiring him or her to do so within 15 days after the notice’s issuance.

Liability Assessment for Non-Filing

If the taxpayer ignores the notice, steps will be made to determine the taxpayer’s liability using the facts available to the concerned Officer. The assessment order will be cancelled if the applicant files the return within 30 days of receiving the notice.

How Associate CA Streamline GST Registration Cancellation

Navigating the path to GST registration cancellation can be complex, but with Associate CA, this journey becomes simplified and efficient. Here’s a step-by-step breakdown of our assistance on how to close GST account:

Pre-Cancellation Assessment

Before diving into the GST cancellation process, it’s imperative to ensure all outstanding GST returns are filed. If there are any lags in compliance, be it with GSTR-3B, GSTR-1, or the GST annual return, these need to be addressed first. Our team at Associate CA will assist you in checking your GST return filing status and aid in completing any pending returns.

Submitting Cancellation Application

The actual process begins with the submission of the GST cancellation application using Form GST REG-16 on the official GST portal. The form requires detailed information, such as:

Updated contact details, encompassing mobile number and email address.
The reason prompting the cancellation.
The preferred date for cancellation.
A detailed breakdown of values and taxes related to stock inputs, semi-finished goods, finished products, and capital assets like machinery.
Specifics related to the most recent GST return filed, along with the ARN (Application Reference Number) of that return.

Navigating Official Procedures:

Once the application is submitted, a GST Officer reviews it. Within 30 days from the date of application, the Officer is expected to issue a cancellation order in Form GST REG-19. The effective date of GST cancellation is at the officer’s discretion, who then informs the taxpayer. In this way, the problem of how to close a GST account comes to an end.

Rejection of application for GST cancellation

In some instances, the concerned Officer may reject the application for the following reasons.

The submitted application is incomplete.
In the Transfer, merger, or amalgamation of business, the new entity has not registered with the tax authority before applying.

In such circumstances, the concerned Officer provides an intimation in writing to the applicant regarding the discrepancy’s nature. The applicant must respond to the same within seven days of receipt of the letter. If the applicant fails to do the same, he or she may reject the application after providing him/her with an opportunity to be heard.

Revocation of GST Registration Cancellation

The cancellation of GST registration can be revoked under specific circumstances:

Conditions for Revocation: Revocation is possible only if the GST authorities cancel the GST registration. It is not permitted if the taxpayer voluntarily cancels the registration.
Application for Revocation: The taxpayer can apply for revocation of the cancellation within 30 days from the date of the cancellation order issued by the GST authorities.

Procedure for Revocation of GST Registration Cancellation

Login to the GST Portal: Access the GST portal using your credentials.
Navigate to Revocation Application: Go to the ‘Services’ tab, then select ‘Registration’ and choose ‘Application for Revocation of Cancelled Registration’.
Provide Reasons for Revocation: Enter the reasons for revoking the cancellation and provide supporting documents, if any.
Verification and Submission: Verify the information using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) and submit the application.
Acknowledgement: Upon successful submission, an Acknowledgement Reference Number (ARN) will be generated for tracking the application status.
Officer’s Review: The GST officer will review the application and may request additional information or documents if necessary.
Decision: If the officer is satisfied with the application, they will revoke the cancellation and restore the GST registration.

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Pick a Business Structure That Works Best For Your Business

Applicable Law
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Companies Act, 2013
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2 â€“ 200
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Limited Liability Partnership

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Compare with other formation types

The GST cancellation process involves several steps, whether initiated by the taxpayer or enforced by GST authorities.
Form GST REG-16: The taxpayer can apply for cancellation of GST registration voluntarily through Form GST REG-16 on the GST portal.
Form GST REG-17: If the cancellation is initiated by the GST authorities, they issue a notice to the taxpayer through Form GST REG-17.
As mentioned above, after cancelling GST registration, the taxpayer must file a final return in Form GSTR-10.
The proper officer has to issue an order for cancellation in the form GST REG-19 within 30 days from the date of application.
The taxpayer is liable for the payment of any outstanding tax dues, including GST liabilities, pending until the date of cancellation.