Cancellation of GST registration means that the taxpayer will no longer be registered under GST regime. He will not have to pay or collect GST or claim the input tax credit and accordingly, need not file the GST returns.
The proper officer may cancel the registration of a registered person. The cancellation of registration may be affected either on:
Cancellation of registration shall be carried out keeping in view the following circumstances:
Further, the application for cancellation of registration can be furnished even before the expiry of one year in case of voluntary registration.
The registration granted to a person is liable to be cancelled in any of the following cases:
Where registration has been obtained by means of fraud, willful misstatement or suppression of facts.
The procedure for cancellation follows:
· Application for cancellation has to be made in the FORM GST REG-16
· FORM GST REG-16 to include specified details:
Ø Details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock
Ø Liability thereon
Ø Details of payment
· FORM GST REG-16 is to be submitted within 30 days of the occurrence of the event, warranting cancellation at the common portal
In case of cancellation by the Proper Officer, the Officer would notify the taxpayer whose GST registration is liable to be terminated before cancellation. The taxpayer would then be given a reasonable opportunity to be heard before their GST registration is cancelled.
Where the Proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he may issue a Show Cause Notice to such person in FORM GST REG-17 to show cause within seven working days from the date of service of such notice as to why his registration should not be cancelled.
The reply to the Show Cause Notice shall be furnished in FORM REG-18 within seven working days from the date of service of such notice.
Where the Proper Officer is satisfied that a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, he shall issue an order to cancel the registration in FORM REG-19. Further, where the reply to the Show Cause Notice is found to be satisfactory, the Proper Officer shall drop the proceedings and pass an order in FORM REG-20 respectively.
Consequent upon cancellation of his registration under the Act, every registered person shall make payment of amount of GST on stock or capital goods or plant and machinery by way of debit in the electronic credit ledger or electronic cash ledger.
