written by Khatabook | January 12, 2022

How to Cancel, Revoke, and Re-Register under GST?

Every person or business has to get themselves registered under Goods and Services Tax (GST) if they cross the limits prescribed for the annual turnover. Similarly, any person making an interstate taxable supply of goods and services is required to get registration compulsorily. At the same time, if the taxpayer is no longer required to pay the tax, they can get their GST registration cancelled by a respective officer. Unless the cancellation is revoked, a supply of goods and services cannot be made. Therefore, let's know about the revocation of GST registration, how to reactivate GST numbers and other relevant information in this article. 

Did you know?

You have to register under GST if your annual turnover is above ₹40 lakhs, whereas ₹10 and ₹20 lakh for special category states.

Cancellation of GST Registration

The taxpayer's GST registration can be cancelled, which means they will no longer be a GST registered person. They won't have to pay or collect GST, nor will they claim input tax credits; thus, they won't have to file GST returns.

Option of Cancellation is available under CGST Act Governed by Section 29 read with rule 20, 21, 21A, 22 of CGST Rules, 2017.

Types of Cancellation under CGST Act, 2017

  • On Request of Taxpayers
  • By Tax Officer Order
  • Request by legal heirs, in case of death of the taxpayer

How to surrender GST number?

There are two methods for cancellation of GST Numbers by Taxpayers:

  1. Cancellation of Migrated Tax Payers GSTIN (Goods and Services Tax Identification Number)
  2. Other Cancellation by Taxpayers

Also Read: GSTN – Know about the Goods and Service Tax Network in India

Cancellation of Migrated Tax Payers GSTIN

Individuals registered under the earlier indirect tax scheme will have to get themselves migrated to GST mandatorily. Many of these people might not require GST registration. However, they cannot make inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.

An electronic application must be submitted in form GST REG-29 by such a taxpayer.

After undertaking the requisite investigation, the proper officer will terminate the registration. 

The steps for migrating taxpayers to cancel their GSTIN on the GST Portal are as follows:

Step 1: Log in to the GST Portal (gst.gov.in) and select Cancellation of Provisional Registration from the drop-down menu.

Step 2: 

  • The Cancellation Page is now open.
  • Your GST Registration Number and Name of Legal Business will show automatically.
  • Now, you are required to give a Cancellation Reason.

Note:  If you have issued any tax invoices throughout the month, you will be required to provide that information.

Fill in the approved signatories' information and submit. Finally, sign off with the Electronic Verification Code (EVC) if you're a sole proprietorship or a partnership. 

Digital Signature Certificate (DSC) is mandatory for LLPs and corporations.

Note: The service above is available to taxpayers who have not yet filed a tax invoice. If the taxpayer has issued a tax invoice, the taxpayer must complete FORM GST REG-16. 

Cancellation by Taxpayers- Other Reasons

What makes a taxpayer cancel their GST registration?

  • The business of the taxpayer has been discontinued or seized off. 
  • The business has been fully transferred, amalgamated, demerged, or otherwise disposed of- The transferee (or the new company formed due to amalgamation/demerger) must register. If the transferor goes out of business, the registration will be cancelled.
  • There is a change in the constitution in the business

For cancellation, the taxpayer must use the GST Portal to submit an e-application in FORM GST REG-29. After a thorough investigation, an authorised officer will terminate the registration.

When a registered person's registration is cancelled, unless they are an Input Service Distributor, a non-resident taxable person, or a person paying tax under the composition scheme or TDS/TCS, they must file a final return within three months of the cancellation date or the date of the cancellation order, whichever is later. It must be filed electronically in FORM GSTR-10 either directly through the common portal or a Facilitation Centre designated by the Commissioner.

For Example, (1) Private Limited is changed to a Public Company.

                        (2) Sole Proprietor has changed to Partnership Firm or LLP as the case may be.

Cancellation by Tax Officer- Proper Officer

A Proper Officer can cancel the Registration Number of the Taxpayer on the following grounds:

  • The registered person does not do business from the address provided at registration.
  • The registered individual sends out bills even if no goods or services have been delivered.
  • The registered individual violates anti-profiteering laws
  •  With rare exclusions, taxpayers who violate R ule 86B and have a total taxable value of supply exceeding ₹50 lakh in a month might use ITC from their electronic credit ledger to discharge more than 99% of their tax burden
  •  Involves the input tax credit in contravention of the Act's section 16 or the rules
  • For more than six months, a taxpayer has failed to file GSTR-3B.
  • The suspension is triggered if there are 'Significant Anomalies' between the values of outward supplies recorded in GSTR3B and those disclosed in GSTR1 ITC. GSTR 3B declared value vs GSTR 2B accessible values.   

GST Cancellation Process

To Cancel the GSTIN – The Authorised Person, i.e. Proper Officer, is required to follow the following steps:

  •  A show-cause notice (SCN) is sent in Form GST REG 17 to notify the authorised person.
  • If there is a disagreement, the registered person must respond in FORM GST REG -18 within seven days of receiving the notice.
  • If the authorised official is satisfied with the response, they can dismiss the case and issue an order in FORM GST REG –20.
  • The authorised officer will issue an order in FORM GST REG-19 if the regi  stered individual fails to justify why their registration should not be terminated.
  • The order will be sent out within 30 days of receiving the show-cause notice.

Cancellation by Taxpayers Legal Heirs

If a registered individual dies, the taxpayer's family or legal heirs can cancel the GST registration using FORM GST REG 16.

In FORM GST REG 16, the legal heirs must supply the following information -

  • Details of inputs, semi-finished goods, and finished goods held in stock on the date of cancellation of registration
  • Liability, if any
  • Payment Information

GSTIN Cancellation Process

As per Rule-22 of CGST Act 2017, procedures for Cancellation of GSTIN are as follows:

  • Cancellation can be done by the Proper Officer suo-moto or by the registered individual submitting an application.
  • In the event of fraud, wilful deception, or suppression of facts, the registration may be cancelled retrospectively.
  • Tax liabilities accrued before the date of cancellation shall be unaffected.
  • Before cancellation, a notice of the hearing and the opportunity is provided.

Process of Voluntary surrender of GST no

  1. Application to be made in Form REG 16 must include the details of stock of inputs, semi-finished goods, and finished goods and the details of any liability or payment outstanding.
  2. The proper officer shall issue an order in FORM GST REG-19 within thirty days from the date of application if a person who has made an application for cancellation of his registration is no longer liable to be registered or if his registration is liable to be cancelled.
  3. The status of the GSTIN will be changed to "Suspended" after filing an application for cancellation of registration in FORM GST REG-16 until the PO passes the final order of cancellation.

Process of suo moto cancellation

  1. In case of reasons to believe with the proper officer that GST registration of the taxpayer should be cancelled suo moto, he shall issue a notice in Form REG 17 requiring the taxpayer to show cause why his no. should not be cancelled.
  2. The reply to Show Cause Notice (SCN) has to be submitted by the taxpayer by GST REG 18 within the time specified.
  3. After consideration of REG 18, the Proper officer decides that the taxpayer is no longer liable to be registered. They may cancel their registration, issue an order in REG 19 and direct them to pay any due within 30 days.

Revocation of GST Registration Number Cancellation

The GST Act is quite extensive, and it contains provisions and procedures that address a wide range of situations that a taxpayer may encounter. In the following part, we'll look at how to revoke a GST registration cancellation order, as well as the forms you'll need. Rule 23 of the CGST Rules, 2017 contains the provision for revocation.

Time- Period for Revocation

Any registered taxable person has 30 days from the date of serving of the order of cancellation of GST registration to request for revocation of GST registration cancellation. It should be emphasised that an application for revocation can only be made if the proper authority has terminated the registration on their initiative. As a result, revocation cannot be invoked when taxpayers voluntarily cancel their GST registration.

Revocation Process

The registered person must make an application to cancel GST registration in FORM GST REG-21, either directly or through a facilitation centre designated by the Commissioner.

Online Process for Revocation of cancellation of registration on GST Portal

The actions to be followed by a registered person who wants to apply for revocation online using the GST Portal are as follows:

  • Go to gst.gov.in to access the GST Portal.

  • Enter the username and password to gain access to the account.
  • Select services from the GST Dashboard, then registration from the services menu, and then an application to revoke cancelled registration from the registration menu.
  • Enter the reason for revocation of cancellation in the choose box. You must also select the proper file to be attached for any supporting papers, check the verification box, select the name of the authorised signatory, and complete the form.

  • The final step is to check the boxes for submitting with DSC or EVC.

Processing of Application of Revocation

If the proper officer is satisfied with the taxpayer's reason for revocation of the cancellation of registration, the officer will revoke the cancellation of registration.

The officer has 30 days from the date of application to revoke the license. In FORM GST REG-22, the proper officer must issue an order reversing the cancellation of registration.

Rejection of Application of Revocation

If a Proper Officer is not satisfied with the revocation application, a notification in FORM GST REG-23 will be issued. The applicant has 7 working days from the date of service of the notice to submit a satisfactory response in FORM GST REG-24. After receiving a satisfactory response from the applicant, the officer must issue a relevant order in FORM GST REG-05 within 30 days of receiving the applicant's response.

Re-Registration of GST after Cancellation under CGST Act, 2017

As previously indicated, any supplier of taxable goods and services who exceeds the threshold limit must register for GST. However, GST officials have recently encountered applications for new registration of enterprises that had their registrations revoked by an officer due to non-compliance with statutory rules.

To avert such situations, the Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 95/14/2019-GST on March 28th, 2019, in which officials underlined the consequences that the taxpayer will face if the cancelled registration is not revoked.

When a registered taxpayer requests for a new registration within the same state, the authorised officer must determine whether any previous registration existed and whether it was cancelled.

If the earlier registration is cancelled, the next step is to determine whether the cancellation is due to a violation of section 29 (2) (b) [composition dealer has not filed returns for three consecutive tax periods] or section 29 (2) (c) [registered taxpayer has not filed returns for a continuous period of six months]; the application of re-registration of GST after Cancellation may be rejected, and the taxpayer may be asked to file all their pending returns first. This re-registration can be done by filing the Form GST REG-21.

Important Notification – Regarding Extension of Revocation Date

The time limit for applying for revocation of cancellation of registration has been extended to 30th September 2021, where the due date for filing an application for revocation of cancellation of registration falls between 1st March 2020 and 31st August 2021. From January 2022, the Central Board of Indirect Taxes & Customs (CBIC) has made aadhaar authentication mandatory for revocation of cancellation of GST registration.

Also Read: Cancellation of registration under GST- Why & How?

Conclusion

It is important to be aware of the procedure regarding the cancellation of registration by the taxpayer and the authorities. There are a total of two methods of cancellation by the taxpayers themselves. Also, the cancellation can be carried out by the proper officer or the taxpayer's legal heir. Once a GST registration is cancelled, you can follow the re-registration procedure if you want to renew the cancelled registration. We hope this article has provided you with in-depth information about laws governing the cancellation, revocation of GST registration, and re-registration of GST after cancellation under the GST Act.  

For the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting, follow Khatabook.

FAQs

Q: Can taxpayers reapply for GST registration?

Ans:

A taxpayer whose registration is cancelled by the proper officer can apply for reversal of such cancellation of GST registration by applying Form GST REG-21. This application should be filed within 30 days of receiving the notice for the cancellation of GST registration.

Q: What if GST returns are not filed for 6 months?

Ans:

Suspension and subsequent GST registration cancellation under Section 29(2) – may be initiated after 6 Months of Due date. If a regular taxpayer does not file a return for a continuous period of six months, then the GST Officer may cancel the GST registration of such person.

Q: How to Revoke Cancelled GST Registration?

Ans:

A registered taxpayer can submit an application for Revocation in form REG-21 within 30 Days from the date of a cancellation order at the Common Portal.

Q: What are the Relevant Forms under CGST Act, 2017 for Cancellation?

Ans:

GST REG-16- Filed by Taxpayer for Application of Cancellation of GSTIN.

GST REG-29- GST cancellation along with information of returns filed.

GST REG-21- Reversal of cancelled GST registration due to non-filing of returns.

GST REG-23- Cancellation notice of the GST revocation application.

GST REG-24- Reply form with respect to GST REG-23.

GST REG-05- Rejection of GST cancellation if the relevant officer finds reasons provided for re-registration are unsatisfactory.

Q: What is Final Return and When it is to be Filed After Cancellation?

Ans:

According to section 45, “every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish online on the GST Portal a final return "within three months" of the date of cancellation or date of order of cancellation, whichever is later, in GST FORM GSTR-10 as specified in Rule 81." 

Q: Does the Cancellation of GSTIN affect the liability of a person/business?

Ans:

The person's liability to pay tax and other dues under this Act, or to discharge any obligation under this Act or the rules made thereunder, for any period before the date of cancellation, whether or not such tax and other dues are determined before or after the date of cancellation, is unaffected by the cancellation of registration under this section.

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