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GST Cancellation

Original price was: ₹2,500.00.Current price is: ₹750.00.

GST Registration Cancellation: A Complete Guide for FY 2024–25

Goods and Services Tax (GST) registration is mandatory for businesses exceeding prescribed turnover thresholds or conducting specific activities. However, if a business ceases operations, reduces turnover below the threshold, or is non-compliant, GST registration may need to be cancelled. At AutoBizNow, powered by Professional Consultant Solution Planet Private Limited, we assist businesses in navigating the GST cancellation process seamlessly.

Types of GST Cancellation

1. Voluntary GST Cancellation

Businesses can voluntarily cancel GST registration if:
- The business is discontinued or transferred.
- There is a change in business constitution leading to a change in PAN.
- Turnover falls below the mandatory registration threshold.
- The sole proprietor passes away.

Process:

File Form GST REG-16 on the GST portal.
Include details such as business contact information, reasons for cancellation, and stock details.
Upon review, the GST Officer issues Form GST REG-19, confirming cancellation.

Benefits:

Avoid penalties for late returns.
Eliminate the burden of monthly/quarterly GST compliance.

2. Cancellation by GST Officer

A GST Officer can initiate cancellation for the following reasons:

Failure to file GST returns continuously.
Business not commenced within six months of registration.
Violation of GST Act provisions.
GST registration obtained through fraudulent means.
Non-compliance with tax invoice rules or improper ITC claims.

Process:

GST Officer issues a show-cause notice via Form GST REG-17.
Taxpayer responds via Form GST REG-18.
If the response is unsatisfactory, cancellation order is issued in Form GST REG-19.
If the response is satisfactory, the case is closed with Form GST REG-20.

Steps for GST Cancellation

Clear Pending GST Returns: Ensure all outstanding returns (GSTR-1, GSTR-3B, and GSTR-9) are filed before initiating the cancellation process.
Submit GST REG-16:
- Provide reasons for cancellation.
- Declare tax liability on stock and assets.
GST Officer Review: The Officer reviews the application and issues a cancellation order within 30 days of the application date.

Final Return Filing (GSTR-10)

Once GST registration is cancelled, businesses must file a final return using Form GSTR-10 within:

3 months of cancellation, or
Date of cancellation order, whichever is earlier.

The final return ensures that no tax liability remains and that any ITC on stock is reversed.

Revocation of GST Cancellation

Revocation applies if the GST registration is cancelled suo-moto by the GST Officer. Steps to apply for revocation:

File GST REG-21 within 30 days of the cancellation order.
If accepted, the Officer issues GST REG-22 to restore registration.
If rejected, the Officer issues a notice in GST REG-23.
Respond with clarification in GST REG-24 within 7 working days.

Key Considerations for GST Cancellation

Outstanding Liabilities: Ensure all taxes and dues are cleared before filing for cancellation.
Input Tax Credit (ITC): Reverse ITC claimed on stock and capital goods by paying the higher of:
- ITC on remaining stock, or
- Output tax liability on stock.
Pending Returns: File all returns to avoid penalties and rejection of the cancellation application.

Common Reasons for Rejection of GST Cancellation

Incomplete application.
Non-compliance with filing requirements.
Failure to register a new entity in cases of mergers or transfers before cancellation.

In such cases, the Officer issues a discrepancy notice, allowing the applicant 7 days to respond.

FAQs About GST Cancellation

💬 1. Is it mandatory to file a final return after GST cancellation? Yes, filing GSTR-10 is compulsory to confirm no pending liabilities.

💬 2. Can I apply for new GST registration after cancellation? Yes, but only if all previous compliance and penalties are cleared.

💬 3. What happens if I don’t respond to a show-cause notice? The GST Officer may cancel your registration without further notice.

💬 4. Can a taxpayer appeal a cancellation order? Yes, appeals can be filed if the taxpayer believes the cancellation is unjustified.

Why Choose AutoBizNow for GST Cancellation?

🌟 End-to-End Support: From filing pending returns to cancellation applications. 🌟 Expert Guidance: Avoid errors with professional assistance. 🌟 Compliance Assurance: Ensure a smooth and penalty-free cancellation process. 🌟 Quick Turnaround: Complete the process efficiently within stipulated timelines.