Confused about how to surrender GST registration? The process of cancellation of GST registration is simple. You can cancel your GST registration if the GST rules don’t apply to you or if you want to close your business.
The registration granted under GST can be cancelled for any specified reason. The cancellation can either be initiated by the department or the registered person/company can also apply for cancellation of their GST Number. In case of the death of a registered person under GST, the legal heirs can apply for cancellation of the GST registration.
Many are still confused about GST surrender fees because they do not know the GST surrender rules. No fee is payable for filing an application for cancellations of the GST registration.
Reason for GST Registration Cancellation:
There are many reasons for surrender of GST Registration. The GST registration can be cancelled for the following reasons:
- a person registered under any of the existing laws, but who is not liable to be registered under the GST Act;
- the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of;
- there is any change in the constitution of the business;
- the taxable person (other than the person who has voluntarily taken registration under sub-section (3) of section 25 of the CGST Act, 2017) is no longer liable to be registered;
- a registered person has contravened such provisions of the Act or the rules made thereunder;
- a person paying tax under Composition levy has not furnished returns for three consecutive tax periods;
- any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of six months;
- any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration;
- registration has been obtained by means of fraud, willful misstatement or suppression of facts
Steps to Surrender GST Registration
GST Registration can be surrendered or cancelled by three ways:
1. GST surrender by the registered person or company – A registered person or a company can apply for cancellation of GST registration
- If your turnover is less than ₹20 lacs
- If you are shutting down your business or profession.
- If the proprietor is dead, in the case of the sole proprietorship
- If your business is no longer liable for GST Registration
- If there is any other reason, which must be proved in the application.
2. By GST Officer – GST officer can cancel the registration if the organization falls under the following conditions:
- If you or your company have violated any GST rules
- If a tax return has not been filed for three consecutive years
- If you have obtained GST registration through fraud methods
- If the registered person or company has not done any business from the last six months after registration under GST
- If there is any other issue
2. GST surrender by Legal Heir – Confused about How to Surrender GST Registration of a death person? A legal heir can apply for cancellation of GST registration after death of the proprietor in the case of a sole proprietorship firm.
Steps to Surrender GST Registration
If you have decided to surrender your GST Registration for any reason then you must follow the following steps:
Step 1: Login into your account on GST.GOV.IN
Step 2 : Go to Services >> Registration >> Application for Cancellation of Registration
There will be three tabs as under:
- Basic Details
- Cancellation Details
- Verification
Step 3: Fill the address for future communication or select the option of Address same as above and then go to Cancellation Details tab.
Step 4: Select the reason for cancellation and date of cancellation. Below at this page is showing the date for which you have already filed a return.
Step 5: Go to verification tab and verify using EVC or Digital signature and your ARN will be generated.
After cancellation of GST Registration what to do? Enjoy your life. Chill.
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