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GST Cancellation /Surrender your GST
Overview
GST cancellation refers to the process of cancelling or surrendering a GST registration that was previously obtained by a taxpayer. This may be required in case the business operations have ceased or if the entity is no longer liable to pay GST.
The following are some of the scenarios where GST cancellation may be required:
- Ceased business operations: If a business has closed down, GST registration may no longer be required. In such a case, GST cancellation is necessary.
- Change in business structure: If there is a change in the business structure, such as the formation of a new partnership, GST registration may need to be cancelled.
- Transfer of business: If a business is sold or transferred to another person, the existing GST registration may need to be cancelled.
- No longer liable to pay GST: If a business falls below the GST registration threshold or if the business is no longer engaged in activities that attract GST, the GST registration may need to be cancelled.
To cancel a GST registration, the taxpayer needs to file an application for cancellation of registration in the prescribed form. The application needs to be filed online on the GST portal. After filing the application, the GST officer will verify the details and if satisfied, will approve the cancellation of registration.
It is important to note that the taxpayer needs to clear all pending liabilities before applying for GST cancellation. Failure to do so can result in legal action by the tax authorities.
There are two types of GST cancellation:
- Voluntary Cancellation or Cancellation on the request of Taxpayer: Voluntary cancellation of GST registration refers to the process of cancellation of GST registration by the registered person on their own accord. It can be initiated when a person decides to close their business, transfer their business to another person or when the business is no longer liable for GST registration.
In the case of voluntary cancellation, the taxpayer has to file an application in Form GST REG-16 on the GST portal. The application should be filed within 30 days from the date of cessation of business or liability to register under GST.
- Suo-moto Cancellation: Suo-moto cancellation of the GST registration refers to the cancellation of the registration by the tax authority instead of the registered person. It can be done in cases where the taxpayer has failed to file GST returns for a continuous period of six months or more. The tax authority can also cancel the registration if the registered person has not commenced business within six months of obtaining registration.
In such cases, the GST officer will issue a notice to the registered person, asking them to show cause as to why their registration should not be cancelled. The registered person will be given 7 working days to reply to the notice. If the officer is not satisfied with the reply, they can proceed with the cancellation of the registration.
The suo-moto cancellation of the GST registration is done to ensure that only active and genuine taxpayers are registered under GST. It helps to prevent tax evasion and ensure compliance with the GST laws.
Process of GST cancellation.
GST cancellation can be done online through the GST portal. Here are the steps to cancel the GST registration online:
- Go to the GST portal and log in using your credentials.
- Go to the ‘Services’ tab and select ‘Registration’ from the drop-down menu.
- Click on the ‘Application for Cancellation of Registration’ option.
- Fill out the required details such as the reason for cancellation, date of cessation of business operations, and bank account details.
- Upload the necessary documents such as proof of business closure, consent of all partners/directors, and any other documents as applicable.
- Submit the application and a reference number will be generated.
- The application will be processed by the GST authorities and a cancellation order will be issued within a few days.
Why STARTUP SAMPARK?
STARTUP SAMPARK provides reliable and efficient GST Cancellation services to businesses in India. Here are some reasons why you should choose STARTUP SAMPARK for GST Cancellation:
- Experienced professionals: STARTUP SAMPARK has a team of experienced professionals who are well-versed with the GST laws and regulations. They can guide you through the process of GST Cancellation and ensure that all the formalities are completed without any hassle.
- Customized services: STARTUP SAMPARK understands that every business is unique and has different requirements. They offer customized services that cater to the specific needs of your business.
- Timely services: STARTUP SAMPARK is known for providing timely services to its clients. They ensure that all the necessary paperwork is completed within the specified timeline.
- Cost-effective: STARTUP SAMPARK offers cost-effective GST Cancellation services to businesses of all sizes. They provide transparent pricing and ensure that there are no hidden costs.
- Strong customer support: STARTUP SAMPARK has a strong customer support team that is available round the clock to address any queries or concerns that you may have regarding the GST Cancellation process.
Overall, STARTUP SAMPARK is a reliable and trusted partner for businesses looking to cancel their GST registration in India.
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FAQs
GST cancellation or surrendering is the process of terminating the registration of a business entity under the GST system. It can be done voluntarily by the taxpayer or it can be initiated by the GST authorities in certain cases.
Cancellation and surrender of GST registration refer to the process of terminating one’s GST registration. However, there is a subtle difference between the two:
- Cancellation of GST registration: It is initiated by the GST authorities if they find any non-compliance or wrongful registration by the taxpayer. It can also be voluntarily initiated by the taxpayer if they wish to discontinue their business activities or cease to be liable for GST. In the case of cancellation, the registration is deemed to have been cancelled from the effective date of registration or from a date determined by the tax authorities.
- Surrender of GST registration: It is a voluntary process initiated by the taxpayer when they want to give up their GST registration due to various reasons like closure of business, merger, transfer of business ownership, etc. The application for surrender is filed online on the GST portal, and the registration is cancelled from the effective date of cancellation specified by the taxpayer.
In summary, cancellation is initiated by the tax authorities or taxpayer, while surrender is voluntary and initiated only by the taxpayer.
The following documents are required for GST cancellation:
- Application for Cancellation in FORM GST REG-16
- Final GST Return in FORM GSTR-10
- Details of payment of any tax, interest, or penalty due
Yes, it is mandatory to cancel the GST registration if your business is shut down or has ceased operations. This is because under the GST law, every registered person is required to file GST returns until the date of cancellation of registration. If the GST registration is not cancelled, the person will have to continue filing the returns and may also be liable to pay late fees and penalties for non-compliance. Therefore, it is important to cancel the GST registration as soon as possible after the business has shut down.
Yes, you can cancel your GST registration online through the GST portal. The steps for online GST registration cancellation are as follows:
- Log in to the GST portal with your credentials
- Go to the Services tab and click on the Registration tab
- Select the Cancellation of Registration option
- Fill out the required details and upload the necessary documents
- Submit the application
- The GST officer will verify the details and documents provided and approve the cancellation request.
It is important to note that the cancellation of GST registration is a serious decision and should only be done after careful consideration and consultation with a professional.
No, there is no penalty for cancelling GST registration. However, any tax liability that is outstanding must be paid before cancellation.
No, GST registration cannot be cancelled if any returns are pending. All returns must be filed before initiating the cancellation process.Once you have filed all your returns and cleared any outstanding dues, you can proceed with the cancellation process. It is advisable to seek professional assistance to ensure that the cancellation process is completed smoothly and without any complications.
If a business entity has closed its operations, it can apply for GST cancellation by submitting an application for cancellation along with the final GST return in FORM GSTR-10.
If a business entity has transferred its business to another person, it can apply for GST cancellation by submitting an application for cancellation along with the final GST return in FORM GSTR-10 and a copy of the transfer deed.
Yes, you can apply for GST cancellation even if you have pending tax liabilities. However, you must clear all your dues before the cancellation is processed.
Yes, you can cancel your GST registration for a specific business vertical if you have multiple registrations. However, the cancellation request must be submitted for each vertical separately.
The GST authorities are required to process GST cancellation within 30 days of receipt of the application for cancellation. However, it may take longer in certain cases where further verification is required.
Yes, you can revoke the GST cancellation application before the cancellation certificate is issued by filing an application in the prescribed format. However, once the certificate is issued, the cancellation process cannot be stopped or revoked.
Once the GST registration is cancelled, the following steps need to be taken:
- Payment of dues: Any outstanding dues should be paid by the taxpayer. If there are any input tax credits lying unclaimed, they should be reversed and paid back to the government.
- File final GST return in Form GSTR-10: A final GST return has to be filed within three months of the cancellation date. This return will have to be filed even if there is no business activity during the period.