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Cancellation of GST Registration?

Cancellation of GST Registration means that the taxpayer will no longer be able to pay or collect Goods and Services Tax.

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How can it be Cancelled?

The registration under GST can be cancelled for various reasons. The cancellation can be initiated either by the tax officials or the registered taxpayer can apply for the cancellation of the GST Registration.

In case of death of a registered person, the legal heirs can apply for the cancellation.

There is a provision for revocation of the cancellation if the registration is cancelled by the department. We'll cover it in this article.

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Reasons for Cancellation

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The registration can be cancelled for three main reasons:

  • 1:- Tax Officials
    The officials from the department can initiate cancellation on their own motion if:
    • A registered person failed to commence business within 6 months from the date of registration
    • Registration has been obtained by suppression of facts or by any means of fraud/misleading statement
    • Invoice or bill is issued without supply of goods and services
    • Registered taxpayer has not furnished returns for a continuous period of six months
    • Taxpayer failed to conform to the provisions and rules made under the Act
    • The taxable person is no longer liable to be registered
    • A person registered under any of the existing laws but not liable to be registered under the GST Act
    • A person registered under Composition Levy failed to file tax returns for a continuous period of 3 months
  • 2:- Personally (Voluntarily)
    There might be different reasons which might prompt a person to cancel the GST registration.
    • A taxpayer can apply for cancellation of the registration if the business is discontinued
    • The constitution of the business has changed. Example - Partnership has been changed to an LLP
    • The business has been transferred fully, amalgamated, demerged or otherwise disposed of
  • 3:- Death of Taxpayer
    In case of death of a taxpayer, the legal heirs can apply for the cancellation of GST Registration.
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Revocation of Cancellation

Revocation means official cancellation of a decision. If the GST Registration is cancelled by tax officials on their own motion, then the registered person can apply for the revocation of cancellation of registration within thirty days from the date of cancellation order.

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Procedure for Revocation

  • A registered person can submit an application for revocation of cancellation of registration in FORM GST REG-21, if the registration has been cancelled by the Proper Officer on his own motion and not on the basis of an application.
  • The application must be submitted within a period of thirty days from the date of the service of the cancellation order at the common portal. Reasons for revocation of cancellation of registration must be recorded in writing.
  • If the Proper Officer is satisfied after examination of the application that there are sufficient grounds for revocation of cancellation of registration, then he can revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.
  • If the Proper Officer is not satisfied then he will issue a notice in FORM GST REG–23 requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to submit the reply within a period of seven working days from the date of the service of the notice in FORM GST REG24.
  • After receiving clarification in FORM GST REG-24, the Proper Officer shall dispose of the application within a period of thirty days from the date of the receipt of clarification from the applicant.
  • The Proper Officer can reject the application for revocation of cancellation of registration and communicate the same to the applicant by an order in FORM GST REG- 05.
  • If the registration has been cancelled for failure to furnish returns, application for revocation shall be filed, only after such returns are furnished and any amount due has been paid along with any amount payable towards interest, penalty and late fee.
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