Cancellation of Registration

Q1. Under which circumstances can a registered Taxpayer file for cancellation of GST registration?

A registered Taxpayer can file for cancellation of GST registration on the occurrence of any of the following events:

  1. Discontinuance of business or closure of business.
  2. Taxable person ceases to be liable to pay tax.
  3. Transfer of business on account of amalgamation, merger, de-merger, sale, leased or otherwise.
  4. Change in constitution of business leading to change in PAN.
  5. Registered voluntarily, but did not commence any business within specified time.
  6. Taxable person no longer liable to be registered under GST Act.
  7. Death of sole proprietor
Q2. Who all can file for cancellation of registration?

The following can file for cancellation of GST registration:

  1. Existing Taxpayer
  2. Migrated Taxpayer whose application for enrolment has been approved
  3. Migrated Taxpayer who has not filed any other form after filing of application for enrolment
  4. Proper officer either on his motion or on application filed by the registered person or by his legal heirs in case of death of such person
Q3. From where can I file for cancellation of GST registration?

Application for GST registration can be accessed from the GST Portal, after logging in.

The path is Services > Registration > Application for Cancellation of Registration.

Q4. Who all cannot file for cancellation of registration?

The following people cannot file for cancellation of GST registration:

  1. Persons registered as Tax Deductors / Tax Collectors
  2. Persons to whom UIN has been allotted
Q5. What is the precondition for cancellation of registration in case of amalgamation / merger / change in constitution of business?

In case of amalgamation / merger / change in constitution of business, the new entity (i.e. transferee entity) must be registered with the tax authority, and must have a valid GSTIN at the time of filing for cancellation of registration by the old amalgamated / merged / transferred entity.

Q6. What is the implication of tax payable on stock while filing for cancellation of GST registration?

While filing the application for cancellation of registration, the Taxpayer needs to fill the value of stock and corresponding tax liability on the stock, and accordingly offset the liability (tax payable) from Electronic Cash Ledger / Electronic Credit ledger equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished goods or finished goods held in stock or capital goods or plant and machinery, on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed.

In case of capital goods or plant and machinery, the person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery, whichever is higher.

In case of Nil or no amount to be entered by Taxpayer in value of stock and tax payable section, the Taxpayer can still submit the form.

Q7. Why is the Submit button in form for cancellation of registration not getting active despite filling it out?

The Submit button gets activated once all the mandatory fields (other than signatures) are filled. Please check all the mandatory fields carefully and provide information for any field that you might have missed.

Q8. What is the duration within which Taxpayers need to file for cancellation of GST registration?

Taxpayers need to file for cancellation of GST registration within 30 days from the date from which registration is liable to be cancelled, in case of voluntary cancellation.

Q9. Is there any limitation on filing for GST registration by Taxpayers who had registered voluntarily?

No.

Q10. Can I file for amendment of Core fields after applying for cancellation of GST registration?

No. Once you have submitted the application for cancellation of registration, and ARN has been generated, you will not be allowed to file for amendment of Core fields.

Q11. Can I file for amendment of Non-Core fields after applying for cancellation of GST registration?

Yes. Once you have submitted the application for cancellation of registration, and ARN has been generated, you can file for amendment of Non-Core fields

Q12. I was issued a temporary-ID by Suo Moto registration. Can I file for cancellation of this registration?

No. You cannot file for cancellation of Suo Moto registration. However, you can file an appeal against the issuance of Suo Moto registration to you at the appropriate forum, as provided in law.

Q13. What will be status of GSTIN, in case of application for cancellation is submitted by taxpayer?

The existing GSTIN status will continue to show the status as ‘Active’. However, once the application of cancellation is filed, the following message will be displayed at the bottom of the screen “ Application of cancellation filed “.

Q14. I have applied for registration on a voluntarily basis. Can I apply for cancellation of registration?

Yes, you can apply for cancellation of registration any time.

Q15. Is it mandatory to give reasons for cancellation of registration?

Yes, it is mandatory to give reasons for cancellation of registration in the Reason for Cancellation field.

Q16. How to cancel registration if I have issued any invoice and I am migrated taxpayer?

You will get a confirmation of the cancellation of provisional registration on your e-mail address.

Q18. My registration has been cancelled. Can I still file return, for past period(s), during which my GSTIN was active?

Yes, you can file return for past period(s) for which your registration was active, till the effective date of cancellation.