Who needs to cancel their GST?

A person or business entity might need to cancel their GST Registration in the following circumstances:

GST is a form of indirect tax imposed on both goods and services as per the provisions of the Goods and Service Tax Act, 2017. It is a multi-stage, destination-based, comprehensive tax system. GST Rates vary from 0 percent to 28 percent. You will have to pay CGST, UTGST, or IGST based on the location of the supply of goods or services

• Closure or transfer of your business entity

• Cessation of liability to pay GST or remain registered under the Act

• Change in constitution of business or PAN

• Failure to start a business after voluntary registration

Process of GST Registration Cancellation

• Make an application for cancellation on the GST portal with Form GST REG Provide details of the stock of goods held with your business as of the application date.

• Pay any pending GST liability and also submit details of payment.

• You shall receive a cancellation order in 30 days of application from the GST officer. The effective date of cancellation is mentioned in the order.

Cases where a GST Registration cannot be cancelled

Under the Below Mentioned Circumstances, GST Registration is Mandatory Irrespective of the annual Turnover:

• Persons making any inter-state taxable supply

• Casual taxable persons making taxable supply

• A person who wants to expand his business and GST also helps in LOAN

• A person who wants to tie-up with any online company

• Non-resident taxable persons making taxable supply

• Persons who are required to deduct tax under section 51, whether or not separately registered under this Act.

• Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise

• Input Service Distributor, whether or not separately registered under this Act 

• Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52

• Every electronic commerce operator

• Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

• Such other person or class of persons as may be notified by the Government on the recommendations of the Council

• A person who is required to pay tax under sub-section (5) of section 9

• Persons who are required to pay tax under reverse charge

Not sure if you fall under one of these categories?

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