GST Cancellation: Everything You Need to Know About GST Cancellation

GST Cancellation is a process that allows taxpayers to cancel their GST registration. Read on to know more about the process, requirements, and implications of GST Cancellation. Our GST Cancellation Services are available at Rs2899/-. To know more discuss with us. 

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GST Cancellation : Introduction

The Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. GST is a comprehensive tax that subsumes all other indirect taxes like VAT, Service Tax, and Excise Duty. Every person or entity that is involved in the supply of goods and services is required to register for GST. However, there might be instances where a taxpayer may want to cancel their GST registration. GST Cancellation is a process that allows taxpayers to cancel their GST registration. In this article, we will discuss everything you need to know about GST Cancellation.

GST Registration, GST Return, GST Cancellation

What is GST Cancellation?

GST Cancellation is a process that allows taxpayers to cancel their GST registration. Once the GST registration is canceled, the taxpayer is no longer liable to pay GST or file GST returns. The GST Cancellation process is initiated when the taxpayer applies for cancellation of their GST registration.

When can a taxpayer apply for GST Cancellation?

A taxpayer can apply for GST Cancellation under the following circumstances:

  • If the business has been closed down.
  • If there is a change in the constitution of the business. For example, if a sole proprietorship is converted into a partnership firm.
  • If the business has been transferred, merged, or amalgamated with another business entity.
  • If the turnover of the business has fallen below the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for special category states) and the taxpayer no longer wants to be registered under GST.

GST Registration Fee

3499 2899/-
  • Application for GST Registration Cancellation
  • Final Return filing

Documents Required For GST Cancellation

The following documents are required for GST Cancellation:

  • User ID and Password of GST Registration 
  • A copy of the GST registration certificate.
  • A copy of the PAN card of the registered person.
  • Details of the tax paid on such inputs, semi-finished, finished goods held in stock on the date of cancellation.
  • Application for Cancellation of Registration in Form GST REG-16.
  • Detail of Last Return filled by Taxpayer

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GST Cancellation Process

Step 1: Gather Your Documents:

Before you can cancel your GST registration, you will need to gather the following documents:

  1. Your GST registration number
  2. Your GST login credentials
  3. Your GST returns and payment records
  4. Your business closure or transfer documents (if applicable)

Step 2: Log in to the GST Portal:

Log in to the GST portal using your GST login credentials.

Step 3: Navigate to the Cancellation Form:

Once you are logged in, navigate to the GST registration cancellation form.

Step 4: Fill Out the Cancellation Form:

Fill out the GST registration cancellation form, providing all the necessary information, including your reason for cancelling your GST registration.

Step 5: Submit the Form:

Once you have filled out the form, submit it electronically.

Step 6: Wait for Confirmation:

You will receive a confirmation of your GST registration cancellation via email or SMS. The cancellation will take effect from the date you specified in the form.

GST Final Return Filing (Mandatory after cancellation of GST. Non-Filing will attract Penalties)

GST Final Return is a return that needs to be filed by a registered person at the time of cancellation of GST registration. When a registered person cancels their GST registration, they are required to file a final return within three months of the cancellation date. This return will include details of all supplies made and received during the period for which the registration was valid, along with the tax liability and input tax credit claimed.

The GST Final Return is a summary of all transactions that took place during the period of the registration, including details of all taxable supplies made, exempt supplies, and non-GST supplies. It also includes details of all input tax credit claimed, along with any outstanding tax liability. The Final Return must be filed even if there are no transactions during the period of the return.

Once the Final Return is filed, the GST officer will verify the return and may ask for additional information if required. If the officer is satisfied with the return, he will issue an acknowledgement in Form GST REG-06. The GST Final Return serves as a closure of the registered person’s account with the GST department.

It is important to note that if a registered person fails to file the GST Final Return within the prescribed time limit, they will be liable to pay a late fee of Rs. 100 per day, up to a maximum of 0.25% of their turnover in the state or union territory. Therefore, it is crucial to file the GST Final Return on time to avoid any penalties.

Benefits of Voluntary GST Cancellation

If no business activity occurs after acquiring GST registration, the taxpayer must begin the GST cancellation process as outlined. If a taxpayer stops filing GST returns and allows his GST registration to lapse, he will be unable to apply for fresh GST registration using the same PAN.

Further, if the government cancels a GST registration, the taxable person must first apply for the cancellation to be revoked by paying any late fees. Following the restoration, appropriately cancel the GST or continue filing GST returns.

As a result, once a GST registration is received, the taxpayer must keep track of compliance. Hence, if there is no commercial activity, apply for GST registration cancellation as soon as possible.

FAQs On GST Cancellation

Can a taxpayer cancel their GST registration if they have pending GST returns or dues?

 No, a taxpayer cannot cancel their GST registration if they have pending GST returns or dues.

Is there any fee for GST Cancellation?

No, there is no Govt Fee but there may be Professional Fee of CA or Person who is filing your GST cancellation Application.

Can a taxpayer reapply for GST registration after cancellation?

Yes, a taxpayer can reapply for GST registration after cancellation if they meet the eligibility criteria for GST registration.

How long does it take for GST Cancellation to be approved?

The authorities usually approve GST Cancellation within seven working days from the date of submission of the application.

Can a taxpayer voluntarily cancel their GST registration?

Yes, a taxpayer can voluntarily cancel their GST registration if they fulfill the conditions for cancellation.

Can I cancel my GST registration if my turnover is still above the threshold?

Yes, you can voluntarily cancel your GST registration even if your turnover is still above the threshold.

What documents do I need to cancel my GST registration?

You will need your GST registration number, GST login credentials, GST returns and payment records, and business closure or transfer documents (if applicable).