Goods and Service Tax usually known as GST is the value-added tax that is imposed on a majority of the goods and services traded for domestic use. GST is paid by the customers who purchase the goods and services, but it is the businesses that remit this tax to the government upon selling the goods and services. You can identify if you need to register under GST by checking your annual turnover.
Previously the threshold limits per financial year were set for INR 20 lakhs for the states that come under the normal category and it was INR 10 lakhs for special category states. However the new threshold limits were announced on April 1st, 2019 and a GST registration limit of 40 lakh has been set for the states that come under the standard category and INR 20 lakhs for special group states.
This guide will give you more details regarding the GST cancellation, what forms are required for cancelling the GST, and the steps involved in it.
What does the term GST Cancellation mean?
GST cancellation means that Central Tax Authority cancels the GSTIN (Goods and Service Tax Identification Number) which has been issued to a business. Cancellation of GSTIN of a taxpayer means that he/she will no longer be registered under GST and need to pay or collect GST further.
Businesses cannot simply cancel the GST. Before applying to cancel it, a business should make sure that the turnover of the business in a financial year is less than the new threshold limit for GST. Likewise, if you are shutting down your business, you can apply for GST cancellation.
Forms used for GST registration cancellation
To apply for GST cancellation, there are different forms like GST REG 16, GST REG 17, GST REG 18, GST REG 19, and GST REG 20. These forms are for different people and the details regarding them are given below.
- GST REG 16 – This form should only be used by the taxpayer if he/she is applying for cancellation of GST. Consideration is not given for the application other than the taxpayers’ application that has elapsed one or more years after GST registration.
- GST REG 17 – This form is used by an authorized GST officer to provide the notice stating the cancellation of registration of GST to the taxpayer. The authorized office can initiate the GST cancellation after issuing the GST REG17 form to the taxpayer.
- GST REG 18 – Using this form, the sow case notice can be replied under the quantified period which is stated in the sub-rule (1). When the taxpayer receives the notice, he/she should reply to it within seven days of the issuance of the notice. The taxpayer must give an explanation to safeguard the cancellation of GST registration.
- GST REG 19 – This form is used by the GTS officer to issue a formal order for the GST cancellation. The order to send the notice should be under 30 days from the date of application or the response date given in the GST REG 18.
Anybody who wishes to cancel the GST should fill this form with necessary details such as:
- Information related to inputs, semi-furnished and finished good help in stock on the date on which the cancellation of GST registration is applied
- Details regarding the payment
The GST cancellation will be in effect from a date that the office has determined and he/she will inform the taxable person regarding the same.
Steps involved in the cancellation of GST registration online
Ever since all the registration and cancellation of GST is made online, it is a very easy task and the client does not have to spend a lot of time on it. The GST portal is available for the migrated taxpayers to apply for GST cancellation. Install myBillBook on your phone to easily access the GST portal.
The taxpayers who have not issued any invoice after the registration can choose this service. But if the taxpayers have filed any tax invoice, then he/she must fill the GST REG- 16 form. Follow the steps mentioned here to cancel the GST registration online.
Alternatively use the myBillBook app from your phone and visit the GST portal to skip steps like providing your personal and business details
- Visit the GST portal by clicking this link – https://www.gst.gov.in/
- Log in to your account
- On the menu bar on top, you can see the service option, click on it
- Under the service section, you must select the Registration and then click on the application for cancellation of registration
- A pop-up message with three different segments:
- Basic Details,
- Cancellation Details
- Verification will be displayed on the screen
- You must fill in the basic details
- Click on the Save and Continue button
- Under the Cancellation details, you will find six options which are as follows:
- Change in the constitution of trade leading to change in PAN
- Ceased to be liable to pay tax
- Discontinuance/ closure of business
- Death of sole proprietor
- Transfer of business on account of unification, de-merger, sale, leased, etc
- You must fill in various details in the cancellation form like the reason for GST Cancellation, desired date to cancel the GST, particulars on which tax is payable, choose electronic cash ledger or electronic credit ledger to set off the tax liability and the details of the last tax return filed.
- Later after filling in all the required details, the verification details section will appear on the screen.
- You must fill in the name of the authorized signatory and the place of making the declaration
- Fill in other details based on the authorized signatory and choose the relevant selection to apply.
- After submitting the details on the verification an OTP will be generated.
- Enter the OTP
- A message will be displayed on the screen stating that the submission of details has been successful
The person who applied for the GST Registration cancellation will receive an acknowledgement within 15 minutes after submitting the cancellation application.
How to check GST cancellation status
You can track the GST cancellation status online through the GST portal.
- Visit the homepage of the GST portal and click on the Services tab.
- From the drop-down menu, select the Registration option.
- Choose Track Application Status and you can see two options displayed on the screen: ARN and the Submission Period.
- Click on the Submission period and enter the date when you applied for cancellation of GST. Click on the Search button.
- You will now receive the detailed status of the GST cancellation process on the dashboard. When the status is approved by the concerned authority, click on the ARN Number and the HST REG – 02(form) will be generated.
- Save the copy of this form which is the acknowledgement certificate of GST Cancellation.
FAQs on GST Cancellation
- Who can cancel the GST?
Cancellation of GST can be applied by the registered taxpayer, by tax offer’s order, and upon request by legal heirs in the case of death of the taxpayer.
- Can I revoke the GST registration once it is cancelled?
You can revoke the cancellation of GST registration within 30 days from the date of the cancellation order.
- Who cannot file the cancellation of GST registration?
Taxpayers who are registered as tax deductors or tax collectors cannot file for GST cancellation. Likewise, taxpayers who have been allotted UIN also cannot apply.
- How much time does it take for the GST cancellation to complete?
It will take about one month for the GST cancellation to happen after you surrender your GST registration certificate.
- Do I have to walk in for GST to apply for GST cancellation?
No. The GST cancellation can be done online.