How To Surrender GST Number

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If you applied for GST by mistake and received a registration certificate from GST, you may be concerned about the next steps.

If you have registered for GST in error and wish to revoke your registration, you may do so only if your annual revenue is less than 20 lacs (total of sale and unregistered purchase).

Cancellation requests for voluntary GST registrations must be made within one year of the date of registration.

According to Section 29 of CGST ACT:

A proper official may, on their initiative or in response to an application made by the registered person or their legal heirs, cancel registration in any manner and during any period prescribed, taking into consideration circumstances were––(1)

For example, if the company is no longer in operation or has been sold, merged, demerged, or otherwise disposed of due to any of the reasons above.

(b) if the company’s structure changes in any way

Except for the person registered under section 25 sub-section (3), the taxable person is no longer required to be registered under section 22 or section 24 (c).

When he considers it appropriate, the proper officer may cancel a person’s registration as of any date in the past, including any retrospective date.

If a registered person has violated any provisions of the Act or the rules promulgated thereunder,

(b) a taxpayer who owes tax under Section 10 has failed to file returns for three consecutive tax periods;

the individual indicated in subsection (b) has not provided returns for a period of six months without interruption; or

(d) anyone who has voluntarily registered under Section 25’s Subsection (3) has not begun business within six months of registration; or

The proper officer must not cancel the registration without providing the person with a chance to be heard if the registration was obtained through fraud, intentional falsehood, or suppression of facts.

However, even if you cancel your application under this section, you will still be liable for taxes, fees, and other dues that accrued before the date of cancellation, whether or not they are determined before or after that time.

Cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as applicable, is considered a cancellation of enrolment under this Act.

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If your registration is canceled, you are required to pay the greater of the input tax credit on stock and inputs contained in semi-finished or finished goods held in stock, capital goods, or plant and machinery on the day preceding the cancellation date or the output tax due on such items. This sum will be debited from the ledgers of your electronic credit or cash transactions on the:

  • capital as mentioned earlier goods or plant and machinery,
  •  reduced by any prescribed percentage points, or 
  • the tax under Section 15 on the transaction value of such capital goods or plant and machinery, whichever is higher, in the case of capital goods or plant and machinery.

Under subsection (5), the amount payable is computed in the manner provided.

Revocation of cancellation is a legal term that means something different to different people.

To revoke anything is to declare that one’s choice or pledge is no longer valid. It’s possible that the decision to terminate your registration was reversed, in which case your record is still active.

Also Read: How to Activate a Suspended GST Number

CGST Rule for Cancellation of Registration Application

When is it appropriate to revoke a cancellation?

This only applies when a tax official voluntarily cancels a taxable person’s registration. Within thirty days of the cancellation order’s date, the taxable person can request to the officer for the cancellation to be revoked.

Method

A registered person whose registration has been revoked by the appropriate authorities may request a reversal of the cancellation in GST REG-21.

After the cancellation order has been served, you have 30 days to apply through Common Portal to be considered.

An order in form GST REG-22 can be given after 30 days of receipt to revoke the cancellation of registration if the appropriate authority is satisfied. There must be a written explanation for any cancellation or revocation of an order.

The revocation application may be rejected and conveyed to the applicant via an order in form GST REG-05 issued by the appropriate official.

Before an application is refused, the appropriate authority must provide a show-cause notice in form GST REG–23 to the applicant. As a result, they have an opportunity to defend their application. To respond, the applicant has seven working days from the date of receipt of notification to submit a written response on form GST REG-24.

Within 30 days after receiving the applicant’s clarification in GST REG-24 from the appropriate official, a decision will be made.

CGST Procedure for Cancellation of Registration

If a person’s registration is revoked for whatever reason, the registration may be cancelled.

(a) does not carry on business from the designated business location; or

in contravention of this Act’s provisions or rules adopted thereunder, issues a bill or invoice without supplying goods or services

(c) breaches Section 171 of the Act or the rules promulgated thereunder.

CGST Cancellation of Registration Rule

(1) Where the proper officer has reasonable grounds to believe that a person’s registration is at risk of cancellation under section 29, he shall serve such person with a notice in FORM GST REG-17 requiring him to show cause within seven working days of the date of service of such information why his registration should not be canceled.

(2) Within the time indicated in sub-rule (1), a reply to the show-cause notice issued under that sub-rule shall be filed in FORM REG–18.

(3)The proper officer shall, within thirty days from the date of the application submitted under rule 20 sub-rule (1)

 or, as the case may be, the date of the reply to the show cause issued under rule 20 sub-rule (1), 

issue an order in FORM GST REG-19 canceling registration with effect from a date to the person who has applied for cancellation of registration.

(4) If the proper officer finds the reply supplied under sub-rule (2) adequate, the appropriate officer shall dismiss the proceeding and enter an order in FORM GST REG –20.

(5) The provisions of sub-rule (3) shall apply mutatis mutandis to the legal heirs of a deceased proprietor as if the proprietor had made the application himself.

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Related: How You Can Change Trade Name in GST Portal

TRANSFER OR SUSPENSION OF GST REGISTRATION

The following three methods are available for surrendering or canceling a GST registration:

1. GST abatement By the registered person – A registered person, may cancel their GST Registration independently.

  • If your annual revenue is less than twenty lacs
  • If your firm has ceased operations
  • In the case of a sole proprietorship, the proprietor’s death
  • If the business is no longer subject to GST (for example, if you registered to trade interstate but the government later amended the rules to make GST registration optional for interstate trade), or if you are closing down your business or profession.
  • In the event of a sole proprietorship, a legal hirer may request cancellation of the GST registration after the death of the proprietor.

Instructions on how to cancel a GST Provisional Registration:

In order to cancel your GST Registration, go through these steps: –

  • The first step is to Go to the GST Portal and cancel your provisional registration by clicking the Cancel Provisional Registration button.
  • The next step is to The Cancellation page appears when you click Continue.

Your GSTIN and business name will be displayed automatically after you log in.

In order to avoid being charged, you must specify a reason for your cancellation.

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Related: The Complete Guide to Filing GST Returns

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Frequently asked questions

What is the procedure for making a GST refund claim online?

Apply for cancellation of GST Registration by completing GST REG – 16 and supplying information such as the date on which the liability arose, payment details, inputs, and capital goods kept in stock.

Where do you begin the online GST return process?

There are online forms available for GST surrender on the GST official website, which may be accessed at https://www.gst.gov.in/.

To cancel your GST, you’ll need to use FORM GST REG 16, which is the sole form accessible.

How do you give up your Indian GST number?

Click Cancellation of Provisional Registration after logging in to the GST website. The Cancellation page will now be available for you to make changes. When you log in, your GSTIN and business name will appear on the dashboard. You must also mention a reason for canceling the reservation.

Indian taxpayers sometimes ask themselves, “How To Surrender GST Number in India?”

Yes, it’s a common concern that crosses the minds of all taxpayers.

If you forfeit your GST, what exactly are you doing?

The taxpayer will no longer be a GST registered individual, which is all that it signifies. He won’t be responsible for GST payments or collections.

What are the repercussions of surrendering the GST?

It will stop being necessary for the taxpayer to pay taxes.

Second, if the GST registration is revoked but the business continues, a violation under GST has occurred, and severe penalties will be levied against the business.

What form do I use to return my GST?

Cancellation requests must be submitted using GST REG 16 (the cancellation request form).

Describe the meaning of GST reg 17.

Revocation of a negated or canceled enrolment under the Goods and

Services Act is requested under GST REG 17.

By surrendering your GSTIN number, do you mean canceling your GSTIN number?

Registration can be surrendered to the GST department by the registered person or by any legitimate hirer, and cancellation of registration means that the taxpayer will no longer be considered as a GST registered person.

After today, he is no longer obligated to pay or collect any taxes. The cancellation of a GSTIN number and the surrender of a GST registration are two distinct processes; in the first, the applicant applies for the cancellation of a GSTIN number, and in the second, the GST officer cancels the registration if the requirements are not met.

Effects of Postponing or Cancelling

– Taxpayers won’t be required to pay GST going forward.

– GST registration is a legal requirement for some businesses. If a business’s

– GST registration is canceled but its operations continue, it will be considered an infraction under GST and subject to steep penalties.

Who is eligible for a cancellation of their GST registration?

From the taxpayer, thanks for your help. Is it a case of turnover being under 20 lakhs, or something else? Officers of the IRS who will inherit if a taxpayer dies

Conclusion

Before going to the GST portal, the applicant should speak with a GST professional to learn how to surrender a GST number or to learn about the GST.

If the application is submitted without the assistance of a GST specialist, the department may phone or come to ask questions.

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About the author

Surabhi Guleria

10 comments

  • Thank you for providing such meaningful information on the CGST cancellation procedure. Please keep up the fantastic work.

    • Hello Deepak,

      If the GST regulations do not apply to you, you are closing your business or profession, the tax officer requests cancellation, or both, you may cancel your GST registration. 
      As a result, the taxpayer will no longer be required to pay GST, and for some firms, GST registration is required. If the business is still operating after the cancellation of the GST registration, it will be in violation of GST law, and severe penalties will be imposed.

    • Hello Rinky,

      The fee is typically 5% per month on all tax balances owed. Regardless matter how late a customer files their income tax return, they will be responsible for the full monthly fee.

  • Thank you very much for all of these articles.
    Also, can you please explain the difference between a suspended and a canceled GST registration?

    • When a GST registration is canceled for specified reasons, it is referred to as a canceled GST. The cancellation can be initiated by the department or by the registered person, whereas when a taxpayer files an application for cancellation of registration or when the Tax Official initiates a Suo Moto cancellation, the GSTIN status is shown as Suspended.

      Hope you are clear.

    • Hello Devika,

      In the case of notified categories of supply, reverse charge means that the recipient of the supply of goods or services is liable to pay tax rather than the supplier of such goods or services.
      The Reverse Charge Mechanism (RCM) is the process by which GST is paid by the receiver rather than the supplier. In this case, the liability for tax payment is transferred to the recipient/receiver rather than the supplier.

By Surabhi Guleria