Cancellation of registration under GST

Time Limit for Cancellation of GST Registration

If your business no longer falls under the scope of GST regulations or you plan to shut it down, you may need to cancel your GST registration. Alternatively, tax authorities may initiate the cancellation process under specific circumstances. This guide explains the different types of cancellations and the process involved.

Latest Updates on GST Registration Cancellation

1. Union Budget 2024 Update (23rd July 2024)

The Finance Minister has proposed an amendment to Section 30 of the CGST Act, allowing the government to set conditions for the revocation of cancelled GST registrations. This change will take effect once notified by the CBIC.

2. Extension of Revocation Time Limit (4th August 2023)

According to CGST Notification No. 38/2023, taxpayers now have 90 days (instead of 30 days) from the cancellation order date to apply for revocation of their GST registration. This rule applies from 1st October 2023.

What is GST Registration Cancellation?

Cancellation of GST registration means the taxpayer is no longer a GST-registered entity. As a result:

• They do not need to collect, pay, or claim GST credits.
• They are exempt from filing GST returns.
• If a business continues without GST registration despite being liable, it may face legal penalties.

Who Can Cancel GST Registration?

• The Taxpayer: If the business closes or no longer requires GST registration.
• Legal Heirs: In the event of the taxpayer’s death.
• The Tax Officer: In case of non-compliance or fraudulent activities.

Cancellation of GSTIN for Migrated Taxpayers

Taxpayers who migrated from earlier indirect tax systems but do not meet the GST eligibility criteria had to apply for cancellation via Form GST REG-29 on the GST portal. The tax officer verifies the application before processing the cancellation.

GST Registration Cancellation Process

For Voluntary Cancellation by Taxpayer:

1. Log in to the GST Portal and navigate to the cancellation section.
2. Fill in details like business closure reason, pending liabilities, and stock details.
3. Submit the application along with electronic verification.
4. The proper officer will review and issue a cancellation order within 30 days (Form GST REG-19).

For Cancellation by Tax Officer:

1. The officer issues a show-cause notice (Form GST REG-17).
2. The taxpayer must respond within 7 days (Form REG-18).
3. If the response is satisfactory, the officer drops the case (Form GST REG-20).
4. If not, the officer proceeds with cancellation (Form GST REG-19).

Revocation of Cancellation

If the tax officer cancels a registration, the taxpayer may apply for revocation within 30 days using Form GST REG-21. If satisfied, the officer may reinstate the registration (Form GST REG-22). However, if the taxpayer fails to file GST returns before applying for revocation, the request may be denied.

Can You Re-Register for GST After Cancellation?

Yes, businesses can reapply for GST registration even after cancellation unless specifically barred by tax authorities.

Need Assistance? Contact Saptax Hub LLP

For expert guidance on GST Registration in Delhi, cancellation, or compliance, reach out to Saptax Hub LLP. Our professionals ensure a seamless GST process for your business.

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