What is GST Cancellation?
GST cancellation means ending your GST registration, so that your GST number (GSTIN) is no longer active. After cancellation, you cannot collect GST from customers, issue tax invoices or claim input tax credit. You must still clear the tax, interest and other dues that relate to the period before the cancellation.
A GST registration can be cancelled in two ways:
| Type |
Who Starts It |
|
Voluntary cancellation
|
The taxpayer applies for it
|
|
Cancellation by the officer
|
The GST department cancels it, usually after a notice
|
If the registration is cancelled by the officer, in many cases the taxpayer can apply to get it revived. This is called revocation of cancellation.
CA Arpit Gupta helps businesses with voluntary cancellation, reply to cancellation notices, filing of pending returns and revocation of cancelled GST registrations.
When Can You Apply for Voluntary GST Cancellation?
A registered person can apply for cancellation in these cases:
| Reason |
Example |
|
Closure of the business
|
The business has stopped and will not restart
|
|
Transfer of the business
|
The business is sold, gifted or transferred to another person
|
|
Change in constitution
|
A proprietorship converts into a company or LLP, or a firm merges with another
|
|
Turnover below the limit
|
A business that took registration but now falls below the limit and no longer needs it
|
|
Death of the proprietor
|
The legal heir applies as per the rules, if the business will not continue
|
|
Business no longer liable to register
|
The business has changed so that GST is no longer applicable to it
|
|
Wrong or duplicate registration
|
A registration taken by mistake or more than once for the same business in the same state
|
Important rule: A person who took voluntary registration cannot cancel it within one year of taking it, except in some limited cases.
When Can the GST Officer Cancel a Registration?
The officer can cancel a GST registration on his own after giving a notice, in cases such as:
| Reason |
Details |
|
Non-filing of returns
|
A regular taxpayer has not filed returns for 6 months in a row, or a composition taxpayer has not filed for 3 return periods in a row
|
|
Business not found
|
The business is not working from the declared place
|
|
Registration taken by fraud
|
Wrong or false details were used to get the registration
|
|
Not starting business
|
The business did not start within 6 months of registration, in some cases
|
|
Wrong use of credit or invoices
|
Issuing invoices without any supply of goods or services, or claiming credit wrongly
|
|
Violation of GST rules
|
Breaking the rules of the Act in a serious way
|
|
Voluntary registration without business
|
The registration was taken voluntarily, and no business is carried out
|
|
Other reasons in the law
|
As listed in the GST Act and Rules
|
During suspension, you cannot issue tax invoices or claim credit, but you are not required to file returns for that period.
What Should You Do Before Applying for Cancellation?
Please complete these steps first:
- File all pending returns
- Pay all tax, interest and late fee that is due
- Check your input tax credit and see what needs to be reversed
- Transfer the credit
- Settle pending e-way bills, e-invoices and refunds as needed
- Keep your records ready such as books, stock lists and the last returns
- Inform the buyers and suppliers about the closure date, if needed
How Does Our Voluntary GST Cancellation Work?
- Call or WhatsApp us on +91-7081220600
- Tell us about your business like reason for cancellation, the date of closure and the filing status
- We review your GST account
- We file the pending returns and help you to pay the dues
- We calculate the credit reversal
- We file the application for cancellation on the GST portal in Form REG-16
- The registration may be suspended
- The officer reviews the application and may ask for more details
- The officer passes the order in Form REG-19
- We file the final return in Form GSTR-10, within 3 months of the date of cancellation
- We pay any balance
What Mistakes Should You Avoid?
- Stopping the business without applying for cancellation, and leaving returns pending
- Ignoring a show cause notice
- Not filing returns for 6 months in a row, which can lead to cancellation by the officer
- Applying for cancellation without reversing credit on the closing stock
- Not filing the final return GSTR-10
- Cancelling before transferring the credit in a business transfer or merger
- Applying for revocation after the time limit
- Continuing to issue GST invoices after the cancellation
- Not clearing the dues before the application
- Giving the wrong reason or date in the application
Why Choose CA Arpit Gupta for GST Cancellation?
- Chartered Accountant handling your case
- We review your GST account and tell you the steps and the cost before we start
- Correct credit reversal
- Notice handling
- Revocation support
- Final return filing
- Simple language
- Full business support
- Easy contact
Get Your GST Cancellation or Revival Done Right
Do not leave a closed business with pending GST returns, and do not let a notice turn into a cancellation. Share your details with CA Arpit Gupta, and we will complete your GST cancellation, reply to your notice or help to revive your registration.
Call or WhatsApp CA Arpit Gupta at: +91-7081220600.
