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GST Registration Cancellation

Do you wish to come out of the GST regime but don’t know how to do it? Don’t worry we have got your back.

    gst return cancellation

    GST Registration Cancellation

    A taxpayer registered under GST can have their registration cancelled due to various reasons.

    The cancellation may be initiated by the department or the registered person can themselves initiate cancellation. In the event of death of the registered person, the legal heirs can also opt for cancellation.
    GSTR-10 is required to be filed within a period 3 months from the date of cancellation of registration as mentioned in the application or from the date of order of cancellation, whichever is later.

    Reasons for cancellation of Registration (in detail):

    • a person registered under any of the existing laws, but who is not liable to be registered under the GST Act;
    • the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of;
    • there is any change in the constitution of the business;
    • the taxable person (other than the person who has voluntarily taken registration under sub-section (3) of section 25 of the CGST Act, 2017) is no longer liable to be registered;
    • a registered person has contravened such provisions of the Act or the rules made there under;
    • a person paying tax under Composition levy has not furnished returns for three consecutive tax periods;
    • any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of six months;
    • any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration;
    • registration has been obtained by means of fraud, will full misstatement or suppression of facts

    Revocation of cancellation:

    Revocation of Cancellation of Registration refers to the reversal of the order of cancellation as passed by the tax officer on his own motion.

    Such revocation needs to be filed within 30 days from the date of cancellation order.

    What is the Procedure for Filing revocation of cancellation of Registration?

    1. The Registered Person has to submit an application for revocation of cancellation at the GST portal in Form GST REG-21 within 30 days from the date or order of cancellation
    2. If the proper officer is satisfied with the application, he may revoke the cancellation of Registration by an Order in Form GST REG-22 within 30 days from the date of receipt of application for revocation along with reasons for revocation of cancellation.
    3. If the proper officer is not satisfied, he may reject the application for revocation by an order in GST REG-05 and communicate the same to the applicant.
    4. A Show cause notice is to be issued before rejecting the application for revocation, for the applicant to show why the application should not be rejected.
    5. The applicant must reply within 7 working days from the date of service of notice in GST REG-24.
    6. The proper officer has to pass final decision within 30 days from the date of receipt of reply of show cause notice from the applicant.

    # In cases where registration was cancelled on the grounds of failure to file returns, application for revocation cannot be made without furnishing of all pending returns along with interest, tax and penalty due thereon.