1. Gst Registration cancellation application filed by the Registered Tax
payer:
- A person who is registered under any of the existing laws, but is not
required to be registered under the GST Act;
- Change in the constitution of business leading to a change in PAN
- Ceased to be liable to pay tax
- Discontinuance of business/Closure of business.
- Transfer of business on account or amalgamation , merger, demerger, sale,
leased or otherwise
- Death of sole proprietor
Procedure of cancellation
A registered taxpayer who wants to cancel the
registration has submitted an application electronically in Form GST REG-16
within 30 days of occurrence an event. In such cases, the GST registration is
deemed to be suspended from the date of the submission of such an application.
The proper officer will after conducting such an enquiry as is considered fit,
will cancel the registration.
2. Gst Registration cancelled by the GST department on own motion for specific
reason:
If proper officer has reason to initiate the cancellation of GST registration he
can start the proceeding of cancellation by issuing show cause notice in the
FORM GST-REG-17
Reason of cancellation of GST Registration
- 1. If the registered taxpayer has fails to file GST return for six
continuous periods.
- 2. If the taxpaye is registered under the composition scheme and he has not
filed the returns for three straight financial years.
- 3. An asessee has taken voluntary registration of GST but has not started
his business within six months of such registration.
- 4. The GST registration is obtained by fraud or willful misstatement.
- 5. If a taxpayer fails to pay tax, interest or penalty to the GST department
within three months from the date on which such payment becomes due.
- 6. A taxpayer supplies goods or services without any invoice or issues any
invoice without a supply of goods or services to evade tax or wrongful
availing of the input tax credit.
- However, before cancellation of the GST Registration,proper officer should
issue a notice in the form GST REG-17.
- Intimate the taxpayer to submit a reply to the notice within a period of
seven working days from the date on which notice is served in the Form GST
REG-17.
- The date and timing of personal hearing, if any.
If the proper officer is satisfied with the reply he may drop the proceedings for
cancellation of GST and pass an order in form GST-REG-20 . However if he is not
satisfied with the reply to the notice he may pass the order of cancellation in
FORM GST REG-19 within a period of 30 days from the date of reply to SCN.
