Cancellation of GST registration defines that the taxpayer won’t be a GST registered individual anymore; they’re going to not need to pay or collect the tax. Taxpayers who have earlier registered under the GST Act can apply for cancellation of GST registration any time they shall close their business or if the other situation emerges. After the registration is cancelled,the taxpayer is not any longer required to pay tax or collect tax from ordinary people.
Consequences of cancellation
- The taxpayer cannot collect and will not pay GST anymore
- There will be no need for furnishing any GST return by the taxpayer.
- For individual businesses, registration under GST is compulsory. If the GST registration is cancelled and business remains continued, it’ll mean an offence under GST and heavy penance will apply.
Conditions, When a Taxpayer can cancel the GST registration?
- Discontinuance or closure of the business
- Taxable person ceases to be susceptible to pay tax
- Transfer of business on account of amalgamation, merger de-merger, sale, leased or otherwise
- Change in constitution of business resulting in change in PAN
- Registered voluntarily but didn’t commence any business within specified time
- A taxable person not liable any more to be registered under GST act
Who all cannot file the cancellation of GST Registration?
- Taxpayers registered as Tax deductors / Tax collectors
- Taxpayers who are allotted UIN
Revocation for cancellation of GST
Revocation of cancellation of registration defines that the registration process has reversed and therefore the registration remains valid. it’s applicable only the tax officer has cancelled by a taxable person’s registration on his/her motion. Such a taxable person can apply to the officer for revocation of GST cancellation within thirty days from the cancellation order date.
However, the revocation application can’t be filed if the registration has cancelled for failure to file the return. Such returns must be furnished first and payment of all dues amounts of tax, interest and penalty.