Cancellation by GST Officer

An officer can initiate the cancellation of a GST registration if the officer has justification to cancel the GST registration. The proceedings for GST Cancellation by Officer will begin by issuing a show-cause notice in Form GST REG-17.

A GST officer can start the cancellation process if any of the following events occur:

• If a taxpayer has failed to file GST returns continuously.
• An assessee registered for GST voluntarily but did not start a business within six months.
• The registered taxpayer has broken one or more sections of the GST Act or its Rules.
• The GST registration is obtained through deception or malicious misrepresentation.
• To dodge tax or improperly claim the input tax credit, a taxpayer supplies goods or services without an invoice or produces an invoice without providing goods or services.

In case of cancellation by the GST 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 canceled.

The notice to the taxpayer from the GST officer would be sent in Form GST REG-17 with specific reasons why the GST registration should be canceled. The notice would also allow the taxpayer to respond to the notice and have a date and time if a hearing is scheduled.

If the taxpayer responds to the notice and the proper authority is satisfied with the response, he or she may dismiss the case and issue an order in Form GST REG-20. If he is not satisfied, he may issue a Form GST REG-19 order canceling the GST registration.

Cancellation of GST Registration by Legal Heirs

Should a sole proprietor pass away, the responsibility and authority to request the cancellation of the GST registration for the business fall upon the legal heirs.

How ASK Associates Streamlines GST Registration Cancellation

Navigating the path to GST registration cancellation can be complex, but with ASK Associates, this journey becomes simplified and efficient. Here’s a step-by-step breakdown of our assistance on how to cancel GST registration:

Pre-Cancellation Assessment
Before diving into the cancellation process, it’s imperative to ensure all outstanding GST returns are filed. If there are any lags in compliance, be it with GSTR-3B, GSTR-1, or the GST annual return, these need to be addressed first. Our team at ASK Associates will assist you in checking your GST return filing status and aid in completing any pending returns.

Submitting Cancellation Application
The actual process begins with the submission of the GST cancellation application using Form GST REG-16 on the official GST portal. The form requires detailed information, such as:

• Updated contact details, encompassing mobile number and email address.
• The reason prompting the cancellation.
• The preferred date for cancellation.
• A detailed breakdown of values and taxes related to stock inputs, semi-finished goods, finished products, and capital assets like machinery.
• Specifics related to the most recent GST return filed, along with the ARN (Application Reference Number) of that return.

Navigating Official Procedures
Once the application is submitted, a GST Officer undertakes its review. Within 30 days from the date of application, the Officer is expected to issue a cancellation order in Form GST REG-19. The effective date of this cancellation is at the discretion of the Officer, who then informs the taxpayer.

Rejection of Application for GST Cancellation

In some instances, the concerned officer may reject the application for the following reasons:

• The submitted application is incomplete.
• In the transfer, merger, or amalgamation of business, the new entity has not registered with the tax authority before applying.

In such circumstances, the concerned officer provides an intimation in writing to the applicant regarding the discrepancy’s nature. The applicant must respond to the same within seven days of receipt of the letter. If the applicant fails to do the same, he or she may reject the application after providing an opportunity to be heard.

Why Choose ASK Associates?

If you’re contemplating how to close a GST account, consulting with an ASK Associates GST Expert can be invaluable. Not only will we help in preparing and submitting the application, but we’ll also keep a vigilant eye on its progress, promptly respond to any inquiries, and ensure the procedure reaches its completion smoothly after submission.

With ASK Associates by your side, GST registration cancellation becomes a hassle-free endeavor.

Filing the Final Return Post GST Cancellation

Once GST registration is canceled, the person or entity must file a final GST return on Form GSTR-10 within three months of the cancellation date or the date of the cancellation order, whichever comes first.

This is done to make sure the taxpayer has no GST dues pending. This provision does not apply to input service distributors or non-resident taxpayers who must pay tax under Sections 10, 51, or 52.

If the final GST return is not filed in Form GSTR-10, the taxpayer will receive a notice in Form GSTR-3A requiring him or her to do so within 15 days after the notice’s issuance.

If the taxpayer ignores the notice, steps will be taken to determine the taxpayer’s liability using the facts available to the concerned officer. The assessment order will be canceled if the applicant files the return within 30 days of receiving the notice.

With ASK Associates, GST registration cancellation is streamlined and straightforward, ensuring you can focus on your business without unnecessary hassles. Contact us today for a seamless GST cancellation experience.