When a person or company does not need to file a GST return, they may cancel their GST registration. If the taxpayer's annual turnover is less than the exemption cap or whether the taxpayer is no longer a registered citizen. A taxpayer must pay all of his GST debt before applying to revoke his GST registration.
 

When is it possible for a taxpayer to cancel their GST registration?

A taxpayer can file to cancel GST under the below-mentioned circumstances:

• If the individual has decided to close or discontinue his business.
• If the individual has ceased as a taxpayer from paying tax.
• If the business has faced merger, de-merger, lease, amalgamation etc.
• If there is a shift in the business's structure, such as a change in PAN.
• After voluntary registration, if the business has not commenced.
• If the taxable individual is not required to register under the GST Act for any reason.
• In case of the demise of the sole proprietor.

Who Can Apply to Cancel GST Registration?

The following are the people who may apply to get their GST registration cancelled:

1. An existing taxpayer or individual.
2. Migrated taxpayer where the enrollment application has been permitted.
3. A migrated taxpayer who has not filed any other form after filing the application for enrollment.
4. After the death of the registered person, either the officer or the legal heir can file to cancel GST registration.

The cancellation of a GST registration is subject to certain exceptions. The following individuals are not eligible to cancel their GST registration:

1. Individuals who are registered as tax collector or tax deductor.
2. Any individual to whom a Unique Identity Number is allotted.

Time Taken to Cancel GST Registration

• The application to cancel GST registration online once applied must be processed by the GST authorities.
• After the authorities get satisfied they will issue the order to cancel GST registration mentioning the effective cancellation date.
• The process can take a few months but the cancellation order is made effective from the date when the application was made.

Are GST Returns required During the Transition period to Cancel GST Registration?

• Before passing the order to cancel GST registration, you must file the GST returns.
• You must file returns to protect yourself from the penalty of late fees, in case the authority disapproves of your application to cancel GST registration.
• However, if you are free of any type of liabilities they will approve your application to cancel GST registration.

How do you Revoke Your GST Registration after you've Cancelled it?

• The reversal of a cancelled GST registration means that the cancellation application has been overturned, and your registration is still valid.
• Only after the tax officer has cancelled the taxable person's registration on his own is it possible to revoke a GST registration that has been revoked.
• A person can apply for revocation of the cancelled registration within a time span of 30 days from the date of the cancellation order.

What Will Happen After You Cancel GST Registration?

You will be cleared of all obligations if you revoke your GST registration, such as:

• You do not need to pay the GST.
• There is no requirement of furnishing for GST returns.
• For some businesses getting GST registration is mandatory.If your GST registration is cancelled but your company continues to operate, you will be in violation of the law.

Also Read-  Importance of GST registration for Businesses

Conclusion

The tax authorities have the authority to cancel the GST registration if the business operations are ceased. If you decide to move your company, your GST registration will be terminated as well. As a result, before cancelling your GST registration, you can weigh all of the benefits and drawbacks before making your decision. You will be unable to continue your company if your GST registration is cancelled.

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