GST Registration Cancellation

Hassle-free Cancellation of GST registration!

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    Cancellation of GST registration

    Surrendering your GST registration could be a challenging task. Various criteria need to be satisfied before the Cancellation of GST registration. Improper handling of cancellation application might lead to many issues in future. So, it’s better to take help from seasoned experts! There are broadly two reasons for the Cancellation of GST registration

    Cancellation by an Officer

    GST Officer can cancel the registration citing the following reasons: 1. Trying to evade the GST by not issuing GST invoices 2. Failure to file GST return for 6 months straight. 3. Conducting Business from other places than mentioned in the application A show-cause notice is given to the entity to come up with a suitable explanation for its unlawful conduct. If the entity fails to answer for the same, registration of such entity is cancelled.

    Voluntary Cancellation

    Section 29 of the GST act allows a business entity to apply for the Cancellation of GST registration. Application for the Cancellation may be for any of the below-mentioned reasons

    ► Death of the proprietor in proprietorship firm

    ► Closure of Business

    ► Transfer, merger, de-merger or any of the similar reason

    ► Change in PAN due to change in the nature of Business

    ► Reduction of aggregated turnover below the threshold limit

    ► Miscellaneous reason with suitable proof

    All the liabilities should be cleared before the application for Cancellation of the GST registration. Outstanding GSTR3B, GSTR1 or GSTR9 must be filed. Any outstanding liability will lead to the rejection of application of Cancellation.

    Application for the Cancellation

    Application for the Cancellation can be made online via GST portal by filling FORM GST REG-16. Following information must be attached with the application:

    Reason for Cancellation.

    Mobile number, email address and residential address.

    Value and tax of stock, machinery and inputs.

    Details of the entity with which the current entity is merged, if any.

    Details for latest GST return filed.

    Clearance of any outstanding payment

    Before the application for Cancellation, the applicant must clear all the outstanding liabilities. In case of outstanding input tax on input stocks and output tax on supplied goods, applicant has to set aside whichever is higher. The applicant cannot claim ITC on Cancellation of GST, and hence ITC must be paid back.

    Repercussions on failing to apply for Cancellation

    If a business’s GST registration is revoked by authority due to any non-compliance of the rules, new registration cannot be obtained under the same PAN. Thus, it’s critical to apply for the Cancellation of GST registration if you are not conducting any business to avoid any future inconvenience.


    Frequently asked questions

    Yes, you can apply for the cancellation of your GST registration through FORM GST REG-16 as per section 27 of the CGST act.
    Change in the constitution of Business , Closure of Business , Transfer of Business , Death of Sole Proprietor , Any other reason that must be mentioned in the FORM GST-REG-16
    No, cancellation under the CGST act automatically applies to the SGST act too. So you will not have to apply for it separately.
    Yes, your cancellation request will not be entertained if you have any existing tax liability. The application can be made only after clearing any of those liabilities.
    If registration is obtained through any misstatement, suppression of facts or fraud, it can be canceled with immediate effect when such an issue is brought forward in front of the relevant officer.
    This amendment came into effect from 2018. This offers the registered taxpayer freedom from following regular compliances like filing returns while his/her application for the cancellation of registration is pending.

    Related Services

    Are you deducting tax at source? Don’t forget to file your TDS return on time!
    Propel your business with Probal Consulting Group. Kick-start your business with our full-suite accounting and legal services.
    Every supplier registered under the GST law has to file various returns regularly. Period of filing returns and the type of returns are based on the nature of business. GST returns can be filed online via GST portals.
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