GST Cancellation

A GST registration granted to an individual is often canceled by a politician, if:

• The taxable person under GST doesn’t conduct any business from the declared place of business; or
• Issues invoice or bill without supply of products or services in violation of the GST Act and/or GST rules.
• If an individual having GST registration has continuously not filed GST returns for 6 months.

Before the cancellation of registration, the Officer would issue a notice to such person whose GST registration is susceptible to be canceled, requiring show cause within seven working days from the date of service of such notice. The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand canceled.

1. Discontinuance or closure of a business.
2. Transfer of business, amalgamation, merger, de-merger, lease or other pertinent reasons.
3. Change within the constitution of business, which ends up during a change of PAN.
4. Turnover reduces below the edge limit for GST registration.
5. Death of the only proprietor.
6. Any other reason, the likes of which must be proved within the application.

1. Contact address, which incorporates the mobile number and e-mail address. Reason for cancellation.
2. The desired date of cancellation.
3. Particulars of the worth and therefore the tax payable on the stock of inputs, the inputs available in semi-finished goods, inputs available in finished goods, the stock of capital goods/plant and machinery.
4. Particulars of registration of the entity wherein the prevailing unit are merged, amalgamated, or transferred.
5. Particulars of the newest GST return filed by the taxpayer alongside the ARN of the actual return.

The final GST payment is often made through the GST electronic credit or cash ledger. the ultimate payment also can be made during the submission of filing of ultimate GSTR-10 return.

1. The submitted application is incomplete.
2. In the event of transfer, merger or amalgamation of business, the new entity hasn’t registered with the tax authority before the submission of application.

In these situations, the concerned Officer provides a written intimation to the applicant regarding the character of the discrepancy. during which case, the applicant is required to reply to an equivalent within seven days of the date of receipt of the letter, failing which the concerned Officer may reject the appliance after providing him/her with a chance to be heard.

If the ultimate GST return isn’t filed in Form GSTR-10, the taxpayer is going to be issued a notice in GSTR-3A, prompting him/her to try to an equivalent within 15 days of the difficulty of such notice. If the taxpayer fails to suits the notice, initiatives are going to be taken to assess the liability of the taxpayer-supported the knowledge available with the concerned Officer. The assessing order is going to be withdrawn if the applicant files the return within 30 days of the difficulty of notice.

Also, just in case a GST registration gets canceled by the govt, the taxable person would first need to apply for revocation of GST registration cancellation by paying all the late fees (which could run into lakhs) and after restoration – cancel the GST properly or continue filing GST returns. Hence, once a GST registration is obtained, it’s vital for the taxpayer to watch compliance, and just in case of no commercial activity, file for cancellation of GST registration at the earliest.