Just like the GST Registration, its cancellation or closure is equally important. There are many myths regarding goods and services tax cancellation. Here in the present blog we will deal with them and give the clear picture of cancellation or closure of the goods and services tax registration. People who think that if they stop using their GST number it will automatically close then they are wrong here because it is not going to close like this.
Maybe this action of yours will drag you into penalties and fines. Hence the basic understanding of the concept of closing the GST registration is necessary. In order to close GST registration you need to file the application through the online GST portal. If you want to learn how things work when it comes to close GST registration then make sure you will continue reading the present blog till its last line.
What do you Mean by GST Registration?
As per the Goods and Services Tax or GST Act of 2017, it is mandatory to register for GST if your business falls under the goods and services tax registration level. Goods and services tax, often known as GST registration, refers to the process of submitting a GST registration form and getting it after examination. This registration is difficult to obtain, so it is recommended that you seek the assistance of an expert while obtaining it for your firm.
Understanding GST Registration Cancellation
If you have taken GST registration for your business and due to some reasons your business idea got dropped but still you are having that registration for the implementation of the same idea, then you must close the GST registration as soon as possible. If you are thinking that it will be closed on its own, then it is not going to happen. You need to file an application for the cancellation of the GST registration in front of the competent authorities with the reason for the closure.
After the above formalities the department will verify your application for the cancellation and if found everything correct then they will cancel your goods and services tax registration. Before that it is not going to happen and there are chances of fines and penalties on you. Hence you should make sure if your business is shut down due to any reason you should close the goods and services tax registration for the same.
When Can One Surrender the GST Registration?
In the following cases you as a business owner must surrender your goods and services tax registration:
- If the business is closed due to any reason and you are not running the same business in the present time.
- In case the tax authorities finds that there are discrepancies on the side of the taxpayer then they will cancel your GST at any time
- If the business is conducted by a lone proprietor who has died, the goods and services tax registration must be terminated.
- There is another method of surrendering your goods and services tax registration and that is called voluntary surrender of the registration
- If you registered the GST for a specific business but now you drop the idea and that business has not commenced yet then you must surrender your GST registration number.
- If your firm no longer matches the threshold limit of goods and services tax registration, you can close it by filing an application for cancellation.
- If the business form changes and you transition to another business, such as converting your Private Limited Company into a Public Limited Company.
- If you are transferring your business to another person for whatever reason, such as a merger, acquisition, or other methods, you must cancel your GST registration.
How to Close GST Registration Permanently?
If you want to close GST registration permanently then follow the instructions given below:
- The very first thing you need to do is visit the official government portal of the Goods and Services Taxation
- Now login on the portal with the help of the credentials which you have created during the time of the registration of the goods and services tax
- After logging in, go to the “Services” menu.
- Under the Services menu, select “Application for Cancellation of Registration.”
- Now fill the cancellation form with all the information that it ask for and after completing the same check it twice
- Now attract all the necessary documents with the application without which you cannot close GST registration
- Now on this stage you can submit your application before the GST department
- Competent authorities will verify your application
- If they are satisfied with the information they will issue an official order of the cancellation of your goods and services tax registration
Important Forms to Close GST Registration
Some of the important forms in order to close GST registration are:
Form GST Reg-16
To cancel your goods and services tax registration, you must file a form with the GST department, which is known as Form GST Reg-16. Without this it is not possible to cancel the goods and services tax registration. Hence you must file the same form before the competent authorities properly after providing all the information it asks for.
Form GST Reg- 20
Once all of the formalities, from filing an application for the cancellation of the goods and services tax registration to certification to issuing acknowledgement, have been completed, this department will issue an order of cancellation using a form known as the Form GST Reg-20 and that is how you can close GST registration.
Form GST Reg-19
Once you have submitted an application to cancel your goods and services tax registration, you have to patiently wait for the competent authorities to authenticate it. Once the verification has been carried out and the authorities have been satisfied with the data that was accepted through Form GST Reg-16, they are going to deliver an acknowledgement using a form known as Form GST Reg 19.
Conclusion
This blog is to burst the bubbles regarding the closing of GST registration. There are many myths with respect to the same out of which the very common is the GST registration will close on its own. To make it clear nothing is going to happen like this. If you stop filing GST returns even that makes no difference, in the end you have to cancel your goods and services tax registration through filing an application before the competent authorities. Before canceling your GST the very first thing you need to do is complete all the compliances because without fulfilling the same you cannot close GST registration. If you want to close GST registration and have no idea about the same feel free to contact us. We are having a team of experts who can do the same for you.
