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As a business owner, or as a freelancer registered under the Central Goods and Services Tax Act, 2017, you can cancel your GST registration online on the official GST portal. To ensure that you comply with all the legal requirements under the act and avoid paying any penalties, you should have a clear idea of the process involved in cancelling GST registration.
What is GST Registration Cancellation?
GST registration cancellation refers to the process of deactivating your GSTIN on the GST portal. Once the registration is cancelled, the taxpayer is no longer required to collect GST or file regular GST returns.
Businesses generally cancel GST registration when:
- The business is discontinued or closed
- Annual turnover falls below the GST threshold
- The business structure changes
- The GST registration was obtained temporarily
- The business is transferred, merged, or demerged
However, businesses that are legally required to remain registered under GST should not cancel their GSTIN, as penalties and legal action may apply.
Consequences of Cancelling GST Registration
Cancelling your GST registration will have the following consequences:
- You will no longer be a taxpayer registered under the GST Act.
- You will no longer need to collect or pay taxes under GST,
- You cannot claim input tax credit (ITC) for your business,
- Your GSTIN will become invalid, and
- You will not need to file GST returns
Be warned that it is an offence to cancel your GST registration despite being a taxable person under the GST Act. Legal action will be taken against you by the authorities and you will need to pay heavy penalties.
Who can cancel GST registration?
As a tax payer, you can cancel your GST registration if you meet the following criteria:
- Your business has been closed or discontinued,
- Your business has been fully transferred, demerged or amalgamated
- The constitution of your business has changed, such as from a proprietorship to a to private limited company
- Your business turnover falls below the GST registration threshold of ₹20 lakhs
GST authorities may also cancel your GST registration if:
- You do not conduct business from the declared place of business
- Your business issues invoices without actually supplying any goods or services
- Your business violates any anti-profiteering provisions under the GST Act
- You do not file GST returns for a continuous period
- You misuse provisions of input tax credit as per the GST Act
- Your business violates Rule 86B by using more than 99% of Input Tax Credit from electronic credit ledger for supplies exceeding ₹50 lakhs in a month
Documents Required for GST Registration Cancellation
Before starting the GST cancellation process online, keep the following documents ready:
- GST login credentials
- GSTIN details
- PAN card
- Aadhaar card
- Address proof
- Details of stock held
- Latest GST return details
- ARN (if applicable)
- DSC or EVC authentication access
Step by Step Guide to Cancel GST Registration
To file for cancellation of GST registration, you need to follow these steps:
Step 1: Visit the official GST Portal: www.gst.gov.in
Step 2: Login to the portal with your user ID and password
Step 3: Click on Registration under Services, and then click on Application for Cancellation of Registration
Step 4: Fill the form displayed on the page. Check all the three tabs to ensure that all the required information is filled.
Step 5: Click on ‘SAVE & CONTINUE’
Step 6: Select a reason for GST Cancellation from the drop-down list
Step 7: Provide all the required details, based on the selected reason for cancellation
On successful completion above GST cancellation process, the system will display a confirmation message and generate an application reference number (ARN). You will also receive a confirmation message sent by the GST Portal on your registered email ID and mobile number. After that a Tax Official will review your application and supporting documents within 30 days. Upon successful verification, they will send you cancellation order in Form GST REG-19, which will specify the date from which the cancellation is effective.
Note: The above process described how to file GST cancellation request under Form GST REG-16. If you are a Migrated taxpayer who has not issued any tax invoices, you will need to file for GST cancellation under Form GST REG-29 instead.
GST Cancellation Process for Migrated Taxpayers
All Taxpayers who were earlier registered under the old tax laws such as VAT, Service Tax etc. were mandatorily migrated to GST under the GST Act. However, not all of them might be liable to be registered under GST due to not meeting the threshold of ₹20 lakhs, or for any other reasons. If you are one of these migrated taxpayers who is not liable to be registered under GST, and have not issued any tax invoices, you can cancel your GSTIN by submitting Form GST REG-29 on the GST Portal.
Given below are the steps to submit Form GST REG-29 on the GST Portal.
Step 1: Visit the official GST Portal: http://www.gst.gov.in
Step 2: Login to the portal with your user ID and password
Step 3: Click on ‘Cancellation of Provisional Registration’ to open the cancellation page
Step 4: The name of your business and your GSTIN will be automatically displayed on the screen.
Step 5: Provide a reason for cancellation and confirm that you have not issued any tax invoice in the GST regime.
Step 6: Provide all the required details of authorized signatories and then you can sign the form using an Electronic Verification Code (EVC) – if you are a proprietor /partnership firm, or with Digital Signature Certificate (DSC) – if you are a company or LLP.
Please note that migrated taxpayers who have issued any tax invoices under GST will need to complete the cancellation process by submitting Form REG-16, as described earlier.
How to Withdraw your Application for GST Cancellation?
If you change your mind and want to withdraw your application for GST cancellation, you can do so by following these steps:
Step 1: Login to the GST portal and navigate to the ‘View My Submissions’ section
Step 2: You should be able to locate your GST cancellation application
Step 3: Click on the ‘Withdraw’ option
Please note that the ‘Withdraw’ option is available only when your application status shows ‘Pending for Processing’
How to apply for Revocation of Cancelled GST Registration?
You can apply for the revocation of GST cancellation within 30 days of the cancellation order being passed, by following these steps below:
Step 1: Login to the official GST Portal
Step 2: Complete and submit Form GST REG-21 to file the application for revocation
Step 3: Your application will then be reviewed by a tax officer within 30 days
Step 4: If the officer is satisfied with your application, they will approve it through Form GST REG-22
Step 5: In case your application is rejected, they will send you Form GST REG-05 mentioning the reasons for rejection.
Note: You will first need to file your pending GST returns before filing for revocation of GST cancellation. Also, you can only file for revocation of GST cancellation if a Tax officer has cancelled your GST registration and not if you have cancelled it voluntarily.
Common Mistakes to Avoid While Cancelling GST Registration
Avoid these common mistakes during GST cancellation:
- Not filing pending GST returns
- Incorrect cancellation reason selection
- Ignoring outstanding tax liabilities
- Failing to file GSTR-10
- Cancelling GST despite mandatory registration eligibility
- Missing stock declaration details
These mistakes may delay approval or attract penalties.
FAQs
Can I cancel GST registration online?
Yes, taxpayers can cancel GST registration online through the GST portal by filing Form GST REG-16 or REG-29 depending on eligibility.
Can I register again after cancelling my GST again?
Yes, you can reapply for GST registration after cancelling your previous registration provided it was cancelled voluntarily and not by a tax officer due to any violations.
How long does the tax officer take to process GST cancellation applications?
Once the application is submitted, the tax officer must verify your details and supporting documents, and process the application within 30 days.
Do I need to file GST returns after my GSTIN is cancelled?
Yes, you must file the final return known as GSTR-10, within 3 months of your GSTIN being cancelled.
What happens if I continue doing business after cancelling my GST registration?
If your business meets the threshold of mandatory GST registration under the GST Act, and you continue to conduct your business activities after cancelling the GST registration, the tax authorities will levy penalties and take legal action against you under the GST Act.
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