A major topic of discussion in India these days is GST. It seems that the majority of us still do not understand how to register for GST, fill out return forms, submit tax challans, produce e-way bills, and other forms related to the tax. When a company has mistakenly registered for GST and is required to cancel the registration, it is only possible for that company to do so if it has an annual turnover of fewer than 20 lakhs, which is the total of all sales plus unregistered purchases.
GST registration cancellation means that the taxpayer will no longer be a GST-enrolled individual. As a result, the taxpayer will not have to pay or make GST in the future.
- GST will no longer be paid by the taxpayer
- GST registration is mandatory for certain businesses. If the GST registration is canceled and the business is maintained, it will be considered an offense under GST and large penalties will be assessed.
There are several potential scenarios covered by the GST Act. In this section, we examine the procedure for revoking a GST registration cancellation order, as well as the forms required. Revocation provisions are included in Rule 23 of the CGST Rules, 2017.
In the event that GST authorities have cancelled a GST registration certificate, revocation of GST registration can be initiated.
GST Cancellation Checklist
When using Form GST REG-16 for cancellation, the applicant must specify the following information:
- Email and mobile number are included in the contact address
- Reasons for cancellation
- Cancellation date desired
- Input stock values and taxes, the kinds of inputs available in semi-finished goods, the kinds of inputs available in complete goods, and the types of inputs available in machines and capital goods.
- In the event that the current unit is merged, amalgamated, or transferred, details of the entity’s registration will be provided
- A description of the taxpayer’s latest return along with its ARN.
Reasons for GST Cancellation
- Under 20 lakhs in turnover, cancellation occurs
- Taxpayers may cancel their taxes if they discontinue their businesses, convert their businesses, etc.
- Upon non-compliance with the parameters, the business may be cancelled by a tax officer.
GST Registration Cancellation Revocation Online Application Procedure
Taxpayers can revoke or cancel their GST registration online by following these steps.
- Step 1: Registered GST taxpayers need to go to the GST portal in order to revoke or cancel their GST registration.
- Step 2: Click the ‘Login’ button to access your username and password
- Step 3: Enter your user name, password, and captcha information in the required fields, then click ‘login’.information as well as the captcha, and then click ‘login’
- Step 4: Click revocation of cancellation of GST registration on the home page, under the services tab
- Step 5: Once you click the link, the portal takes you to the page where you must fill out the reason for cancellation of registration field.
- Step 6: Click ‘Choose File’ to select a file to attach
- Step 7: Complete the verification process by clicking the checkbox
- Step 8: Select the authorised signatory’s name from the drop-down list
- Step 9: Enter the location of the application in the place field
- Step 10: Click the ‘Save’ button to save and retrieve your application form later.
- Step 11: Choose DSC or EVC as your submission method
- Step 12: Sign the form using your Digital Signature Certificate (DSC) or the Electronic Validation Certificate (EVC). Following your selection of any of the options listed below, you will receive an OTP
- Step 13: Provide emSigner with the registered DSC, then select the DSC from the pop-up screen and take the appropriate action.
- Step 14: Click validate OTP after entering the received OTP
GST Registration Revocation Offline Application Procedure
Registered taxpayers can request the cancellation or revocation of their registration by following the steps below:
Note: The GST portal provides access to FORM GST REG-21.
- Step 1: In cases where the appropriate tax official has revoked or canceled a registered taxpayer’s registration suo moto, the taxpayer may apply directly or through a facilitation center informed by the commissioner for a revocation or cancellation of GST registration.
- Step 2: In 30 days from the date the cancellation order was issued, you must submit an application at the Common Portal
- Step 3: The authorised officer must reverse the cancellation of the registration based on valid grounds as determined by the Act. Using FORM GST REG-22, the officer has 30 days to respond to the application. Registration cancellations or revocations must be documented in writing by the officer
- Step 4: Within 30 days after receiving the applicant’s clarification in FORM GST REG-24, the proper officer must determine whether or not the applicant can proceed
- Step 5: If the GST officer is not satisfied with the revocation application, he or she must issue a notice in FORM GST REG-23. Following the date on which the notice was served, an application must be submitted in accordance with the concerned officer should issue a suitable order in FORM GST REG-05 within 30 days of receiving a response from the applicant.