GST Cancellation: A Complete Guide

GST Cancellation refers to the process of removing a registered business from the GST system. This can happen voluntarily by the taxpayer or involuntarily by the tax authorities due to certain non-compliance reasons. Once a business is canceled under GST, it is no longer required to collect GST on its goods and services, file GST returns, or pay GST to the government.

What is GST Cancellation?

GST Cancellation occurs when the registration of a business under GST is revoked or canceled, either voluntarily by the business or by the tax authorities. This typically happens when the business ceases operations or fails to comply with GST regulations, including non-filing of returns or submitting false information.

Reasons for GST Cancellation

  • Voluntary Cancellation: A taxpayer may request cancellation of GST registration if they are no longer carrying on a business or if their turnover falls below the mandatory threshold limit for GST registration.
  • Non-Filing of GST Returns: If the registered taxpayer does not file GST returns for a prolonged period, the tax authorities may initiate cancellation proceedings.
  • Closure of Business: If a business is discontinued or sold, the GST registration may be canceled.
  • Incorrect Information: If the business has provided false information during the registration process, the GST registration may be canceled by the authorities.
  • Failure to Meet GST Compliance: Businesses failing to comply with GST regulations, such as not maintaining proper books of accounts or not submitting the necessary documents, may face cancellation.

Procedure for GST Cancellation

  1. Online Application for Cancellation: The business must file an application for cancellation of GST registration through the GST portal.
  2. Provide Reasons for Cancellation: The business needs to provide a valid reason for seeking cancellation.
  3. Submit Pending Returns: All pending GST returns must be filed before cancellation is approved.
  4. Payment of Pending Dues: All outstanding taxes and penalties must be cleared.
  5. Issue of GST Cancellation Certificate: Once all obligations are met, a cancellation certificate will be issued by the GST authorities.

Documents Required for GST Cancellation

  • GST Registration Certificate: A copy of the GST registration certificate.
  • Reason for Cancellation: A valid reason for seeking cancellation.
  • Pending GST Returns: Proof of filing all GST returns up to date.
  • Payment of Outstanding Taxes: Proof of payment for any outstanding GST dues.

Due Dates for GST Cancellation Application

Businesses are required to apply for GST cancellation within 30 days of business closure or cessation of operations.

Penalties for Non-Compliance

  • Late Payment of Taxes: Failure to pay taxes promptly can result in penalties.
  • Failure to File Returns: Non-filing of returns can lead to cancellation proceedings by the authorities and fines.

Section Under which GST Cancellation is Filed

Section 29 of the Central Goods and Services Tax Act, 2017 deals with the cancellation of GST registration.

Why Choose Apnaa Filing for GST Cancellation?

  • Expert Assistance: Our team provides expert guidance in handling the entire GST cancellation process.
  • Timely Filing: We ensure your application for GST cancellation is filed on time to avoid unnecessary penalties.
  • Complete Compliance: We ensure that all necessary returns and dues are settled before applying for cancellation.
  • Transparency: Apnaa Filing ensures that you are informed at every step of the GST cancellation process.

have any Questions?