Understanding GST Cancellation
A Registration issued under the GST can be canceled on stated grounds. Cancellations may be made either by the department or the registered person or by legitimate heirs in the event of the death of the registered person. In the event of the cancelation of the registration by the department, provision is made for the revocation of the cancelation of the registration.
An officer under GST may cancel a GST registration on his own initiative or in response to an application filed by the registered person or his or her legal heirs in the event of the registered person’s death. An individual who voluntarily obtained GST registration, on the other hand, cannot apply for GST registration cancellation before one year has passed after the effective date of registration.
Conditions for GST registration cancellation
By the individual, or by his descendants :
- A taxable person has been registered under any of the previous laws (Excise, VAT, etc.), but is not responsible for being registered under the GST Act or under the GST Act.
- For any reason, including death or amalgamation or demerging or disposal of, or disposal of, the enterprise was discontinued or transferred.
- The constitution of the company, or any change in the constitution of the company.
- A taxable person other than a registered person who is voluntarily registered under25 (3) shall no longer be liable for registration under 22 or Sec 24.
By the Proper Authority :
The registered person has infringed the provisions of the Act or the rules laid down therein, as may be prescribed, or
- The Composition Dealer did not provide the return for three consecutive tax years.
- No return has been provided by the registered person (other than the composition dealer) for a continuous period of 6 months.
- Within 6 months of the date of registration, the voluntarily registered individual has not started the company.
- Registration was achieved by fraud/wilful misrepresentation or suppression of evidence.
Final Returns :
When the registration of a registered individual other than :
- Distributor of an Input Service
- A taxable Non-Resident Citizen
- A Taxpayer in Composition
- A person who deducts/collects TDS/TCS
These individuals are required to file a final return within three months of the cancellation date or the cancellation order date, whichever is later, electronically via the common portal in FORM GSTR-10.
Late-filing penalty: In the event of late filing of GSTR-10, a notice is issued to the corresponding taxpayer granting a period of 15 days to file the return. In the absence of compliance by the taxpayer, the tax officer would pass the cancellation order together with interest or penalty on the tax payable.
Revocation of the GST registration withdrawal :
- A registered individual whose registration has been canceled on his own motion by the competent officer may, within a period of thirty days from the date of service of the revocation order, apply a request for cancellation of the registration to the competent officer by means of Form GST REG-21.
- However, if registration has been canceled for failure to provide returns, an application for revocation shall be filed only after such returns have been made and any amount owing as tax has been paid along with any interest, penalty or late fees.
- If the Officer is pleased with the review of the application that the reasons for the cancelation of the registration may be adequate to relocate it, within 30 days from the date of the application's receipt, revoke an order to cancel the registration in the form of FORM GST REG-22. But if the correct officer is unsatisfied, he will send a letter in FORM GST REG-23 asking the applicant to prove that the appeal submitted for revocation should not be denied and the applicant must answer within seven business days from FORM GST REG-24.
- Upon receipt of a reply, when pleased, the Appropriate Officer shall, within 30 days of receipt of the reply, dispose of the appeal. In the event that the applicants cannot be satisfactorily heard, the claimant will then, by order of form GST REG-05, refuse the appeal to revoke the cancelation of the registration, and inform the applicant after having reported the reasons in writing.
