How to cancel registration – GST registration cancellation

Cancellation of registrations (section 29)

• Proper officer may either on his own or on applications received from registered person or by his legal heirs in case of death of such person, cancel the registration, in prescribed manner & time in following circumstances:

1. 1. The business has:

• • • Discontinued,
    • Transfer fully for any reason including death of proprietor,
    • Amalgamated with other entity or,
    • Demerger or
    • Otherwise disposed of.

1. 2. There is any change in constitutions of the business.
   3. The taxable person, other than person registered u/s 25(3) is no longer to be registered u/s 22 or 24.

• Proper officer may cancel the registrations of person from such date, including any retrospective date, as he may deem fit where:

1. 1. A registered person has contravened such provision of Act or Rules made there under
   2. A person paying tax u/s 10 has not furnished returns of three consecutive tax periods.
   3. Any registered person (other than (b) above) has not furnished returns for a continuous period of 6 months.
   4. Any person who has taken voluntary registrations under section 25(3) has not commenced business within 6 months from date of registrations.
   5. A registration has been obtained by means of Fraud, wilful, misstatement or suppression of facts.

• The cancellations of registrations shall not affect the liability of person to pay tax & other dues under this Act or to discharge any obligations under this act or rules made there under for any period prior to the date of cancellations.
• The cancellations of registrations under SGST/UTGST shall be deemed to be cancellations of registrations under CGST.
• A registration person whose registrations are cancelled will have to debit to the electronic credit or cash ledger by an amount equal to:
• ITC in respect of stock of inputs and inputs contained in semi-finished/ finished goods stock or capital goods or plant & machinery on the day immediately preceding the date of cancellations or
• The output tax payable on such goods

Whichever is higher, calculated in such a manner as may be prescribed.

Provision

In case of capital goods or plant and machinery, the taxable person shall pay on account:

• Equal to ITC on said capital goods or Plant & machinery, reduced by such % points as may be prescribed

Or

• Tax on transactions value of such capital goods u/s 15

Whichever is higher.

Form for cancellation under GST laws:

• Cancellation by a registered individual- Form GST REG 16
• Issue show cause notice for Cancellation- Form GST REG 17
• Reply to show cause notice- Form GST REG 18
• Order for dissolution- Form GST REG 19
• To stop the cancellation proceedings- Form GST REG 20
• Explanation form to stay proceedings- Form GST REG 18
• Application for revoking the cancellation- Form GST REG 21
• Order revoking the cancellation- Form GST REG 22

Revocation of cancellation of registrations (section 30):

• What is Revocation of cancellation of registrations (section 30)?
  Revocation of cancellation of registrations means that the decision of cancelling the registration has been reversed and registration is still valid.
• When Revocation of cancellation of registration is applicable (section 30)?
  This is applicable only in the case when the tax officer has cancelled the registration of a taxable person on his own motion. Such taxable person can apply to the officer for revocation.
• Provision of this section:
  • Subject to prescribed conditions, any registered person, whose registration is cancelled by proper officer on his own motion, may apply to such officer to revocation of cancellation of registration in prescribed manner within 30 days from the date of service of cancellation of order.
  • Proper officer in prescribed manner and time, by order, either revoke the cancellation of registration or reject the application of revocation provided that the revocation application shall not cancel without giving heard opportunity to applicant.
  • The revocation of cancellation of registration under the SGST/UTGST, shall be deemed to be a revocation of cancellations under this act (i.e. CGST).