How to Cancel GST Registration Online: A Complete Step-by-Step Guide
Canceling GST registration is as straightforward as applying for a new one. Whether you’re winding up your business, GST laws no longer apply to your operations, or the tax officer has directed cancellation, the process is simple and user-friendly. Let’s explore all the details to help you navigate this process with ease.
Reasons to Cancel GST Registration
You might need to cancel GST registration for the following reasons:
Business Closure: If your business has ceased operations.
Not Liable Under GST: If your annual turnover falls below the GST threshold or your business becomes exempt under GST rules.
Transfer of Business Ownership: When ownership is transferred through sale, merger, demerger, lease, or amalgamation.
Constitution Change: If there’s a change in your business's constitution, such as a change in PAN.
Tax Official’s Decision: In cases where the tax department identifies irregularities or finds your registration invalid.
Prerequisites Before Cancelling GST Registration
Before initiating the cancellation process, ensure the following:
Clear Pending Liabilities: Any outstanding GST dues must be cleared. You cannot cancel GST registration with unpaid tax liabilities.
File Pending Returns: File all pending GST returns, including GSTR-3B and GSTR-1, up to the date of cancellation.
Update Records: Ensure your contact details (email and phone) on the GST portal are up to date to receive OTPs and official communication.
Steps to Cancel GST Registration Online
1. Log in to the GST Portal
Visit the official GST portal at www.gst.gov.in.
Enter your User ID and Password to access your dashboard.
2. Access the Cancellation Application
On the dashboard, go to the ‘Services’ tab.
Under the ‘Registration’ option, select ‘Application for Cancellation of Registration.’
3. Fill in the Application Form
The application form is divided into three sections: Basic Details, Cancellation Details, and Verification.
a. Basic Details Tab
This section contains your basic information, including the GSTIN, trade name, and address registered during GST registration.
Provide your ‘Address for Future Correspondence.’ You can either input this manually or select ‘Address same as above.’
Once completed, click ‘Save & Continue.’ A blue tick will confirm that the section is done.
b. Cancellation Details Tab
In this section, select the ‘Reason for Cancellation’ from the drop-down menu. The options include:
Change in business constitution leading to a change in PAN.
Ceased to be liable to pay tax.
Discontinuation or closure of business.
Others.
Transfer of business due to amalgamation, sale, merger, lease, or demerger.
Based on your selection, provide additional details such as:
Date from which GST registration is to be canceled.
Value of stock and tax liability on stock, if applicable.
Mode of payment (Electronic Credit Ledger, Cash Ledger, or both) for outstanding liabilities.
GSTIN of the transferee entity, if transferring ownership.
Click ‘Save & Continue’ to proceed.
c. Verification Tab
Tick the declaration checkbox confirming that the details provided are true and correct.
Select the ‘Authorized Signatory’ from the drop-down menu and provide the place of declaration.
Complete the verification process using one of the following methods:
DSC (Digital Signature Certificate): Applicable for companies or LLPs.
EVC (Electronic Verification Code): Enter the OTP sent to your registered mobile number and email address.
What Happens After Submitting the Cancellation Application?
Once submitted, the system will generate an Application Reference Number (ARN) as acknowledgment.
The tax officials will review your application and may request additional documents or clarification if needed.
If the application is approved, the GST registration will be canceled, and you’ll receive a notification on your registered email and phone.
Key Considerations After Cancellation
Post-Cancellation Compliance:
If you were liable to pay tax on the stock held on the cancellation date, ensure to settle it.
File a final return (GSTR-10) within three months of cancellation approval to avoid penalties.
Impact on Input Tax Credit (ITC):
After cancellation, you lose the ability to claim ITC on your purchases.
Any unused ITC in your ledger may be reversed as part of the cancellation process.
Reactivation Possibility:
If the cancellation was done mistakenly or by a tax officer and you wish to reactivate, you can apply for revocation within 30 days of cancellation.
GST Liability on Stock:
If you have unsold stock, tax liability may arise. Declare the stock and pay any outstanding GST.
Conclusion
Canceling your GST registration is a simple process designed to be user-friendly. By following the steps outlined above and addressing all prerequisites, you can smoothly cancel GST registration online. Remember to stay compliant with post-cancellation requirements like filing the final return and settling any pending liabilities.
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