How to cancel GST Registration?

GST registration is still one of the most confused and talked topics in India. Due to a little knowledge on the same, people and industry professionals are unable to figure out when and where to get the GST Registration done.

Generally, every business with a turnover more than Rs. 20 lakhs (except businesses in hilly states and North-Eastern states) is supposed to get the GST registration done. In hilly areas and North-Eastern States, business, with turnover more than Rs. 10 lakhs are required to get the GST registration done.

We have covered four major topics in this blogs. Those are as follows:

·         What is GST?

·         When is GST registration required?

·         When to cancel GST registration?

·         How to cancel GST registration?

What is GST?

GST stands for Goods and Services Tax. And every business with certain criteria and turnover above the threshold capital is supposed to get the GST registration done.

GST is an indirect tax levied by the Government of India on the supply of goods and services. GST has superseded various indirect taxes imposed earlier on the supply of goods and services and has provided an extreme comfort to many consumers and suppliers.

On 29^th March 2017, the Goods and Services Act was passed in the Parliament that came into effect from midnight of 1^st July 2017. GST is considered one of the biggest economic reforms of India. GST law in India is a multi-stage and destination-based tax levied on every value addition.

When is GST Registration required?

GST registration is required in the following cases:

Ø  When the turnover of a business exceeds RS. 20 Lakhs (Rs. 10 Lakhs for Himachal Pradesh, J&K, Uttarakhand, and the North-Eastern States.

Ø  When the individual is registered under the Pre-GST law such as VAT, Excise, Services Tax and more.

Ø  Agent supplying online information and database access or retrieval services from a place outside the country to a person in India, other than a registered taxable person.

Ø  A person supplying via e-commerce aggregator.

Ø  A supplier and Input service distributor.

Ø  Non-Resident taxable person.

Ø  Casual taxable person.

Ø  People paying under the reverse charge mechanism.

When to cancel GST Registration?

If you don’t come under the above-described categories, then you don’t need to register your business with GST. If you ever fell in the above categories but, now, you aren’t any part of it then you must withdraw or cancel the GST Registration. Below you can find a few common cases when you will need to cancel GST registration:

Ø  Closure of business;

Ø  No requirement to pay GST ;

Ø  Transfer of business ;

Ø  Change in the constitution and no business activity for at least one year;

Ø  When the turnover goes under Rs. 20 lakh;

Ø  If the taxpayer died, legal heirs can opt to cancel the GST Registration.

Likewise, there are many other cases, when GST registration can be canceled or surrendered.

How to cancel GST Registration?

GST registration can be canceled in the following three ways:

Ø  By Registered Person

Ø  By GST officer

Ø  By Legal Heir

Below we have described a few steps to cancel GST registration without any hassle:

Step1: Login to the GST Portal and click on the Cancellation of Provisional Registration.

Step2:

·         The cancellation page will open.

·         You GSTIN (Goods and Services Tax Identification Number) and the name of the business will display automatically.

·         You will be asked to give a reason for the cancellation of GST registration.

Step3: You will be asked to give details of any tax invoices during this month.

Step4: Fill up the details of authorized signatories and place.

Step5: Sign off with EVC (Electronic Verification Code) with you’re a proprietorship or partnership.

Note: LLP and companies must mandatory sign with DSC i.e. digital signature.