Hardly there are people who are not aware about the GST Registration. Especially after the 2017 reform of goods and services taxation. Before this India had multiple indirect taxation, due to which there is a lot of ambiguity in the tax system of India. After India has adopted the GST system taxation becomes uniform in the country. In order to enter into the GST regime business owners need to register themselves under the goods and services tax as per the rules and regulations mentioned under the Goods and Services Tax Act of 2017.
Once the taxpayer got registered under the GST registration cannot be canceled automatically. It can either be canceled by the government authorities or it may be canceled voluntarily by the taxpayer. Once your GST registration is canceled you come out of the ambit of GST and you don’t need to file GST returns then. In order to check whether your GST registration is canceled or not you need to follow a process which we are going to discuss in the current blog. You can read the same and let know about the same.
What is GST Cancellation?
All business owners who meet the qualifying requirements for GST are required by the Goods and Services Tax Act of 2017 to register for GST. Businesses with a revenue of up to or above Rs. 20 lakh, those engaged in interstate transactions, and proprietors operating via e-commerce platforms are required to register for GST. They need to pay GST in all situations and are unable to operate without a GST registration. A taxpayer will be enrolled to the GST tax system through this registration, and their withdrawal from the system is referred to as a cancellation of GST. For the cancellation also one needs to apply until it has been done by the authorities themselves. If you have applied for the same but still confused whether your GST registration is canceled or not continue reading the current blog.
What are the Different Ways of GST Registration Cancellation?
There are different ways of cancellation of GST, which are discussed below:
Voluntary Cancellation
A registered taxpayer can apply for voluntary cancellation if they cease their business operations or no longer require GST registration. This application can be filed online on the GST portal either by himself or with the help of any expert. There is a proper procedure of cancellation of GST which one needs to follow properly, hence expert help in order to do goods and services tax registration cancellation is suggested. Once you have applied for the cancellation you need to check the status of the same in order to check whether your GST registration is canceled or not. If a taxpayer, registered under GST, becomes a non-taxable person (no longer liable to pay tax), they can apply for voluntary cancellation of GST. In cases where a taxable person becomes exempt from GST, they can also apply for cancellation of registration.
Closure or Transfer of Business
In case of the closure of the business, the taxpayer can opt for cancellation by providing appropriate reasons. The application for cancellation should be submitted within a specified time from the date of closure. If the business is transferred to another entity, the existing registered taxpayer can apply for cancellation. The transferee needs to register separately.
Non-Compliance with Law
In case after the goods and services registration, if anyone is unable to comply with the compliances of GST his or her registration can be canceled by the appropriate authorities. Not only GST will be canceled but heavy fines or penalties may be levied. Failure to comply with GST rules or providing incorrect information during or after the GST Registration, it may lead to cancellation of registration.
Process of Cancellation of GST registration
Follow the steps given below in order to do GST registration cancellation:
- Go to the GST government portal and choose the option of services and then click on the application for cancellation which you will find in the registration option
- Complete the GST REG-16 form with accurate details.
- Provide the reasons for cancellation and select the appropriate cancellation type.
- Upload the necessary documents as per the cancellation type (e.g., closure of business, transfer of business, etc.).
- Commonly required documents include a letter explaining the reason for cancellation, closing stock details, and evidence of the business closure.
- Examine the data entered to make sure it is accurate.
- Submit the cancellation application electronically on the GST portal.
- Once the application is submitted, an acknowledgment with a unique reference number will be generated. Keep this acknowledgment for future reference.
- After reviewing the application, the GST officer may request more details or explanation. If satisfied, they will notify you of the cancellation.
- The taxpayer needs to file any pending GST returns, including the final return, before the cancellation becomes effective.
- Clear any outstanding tax liabilities or dues before the cancellation is processed.
- Once all requirements are met, the GST officer will issue the cancellation certificate.
- Cease business operations from the effective date mentioned in the cancellation order.
- If you have a physical GST certificate, return it to the GST department upon cancellation.
How to Check Whether GST Registration is Canceled or Not?
Once you apply for the cancellation of goods and services tax registration, the second thing which you must know is how to check whether the GST registration is canceled . In order to check whether one’s GST registration is canceled or not follow the steps mentioned below:
- Visit the goods and services tax official portal and login
- Once logged in, navigate to the ‘Services’ tab on the main menu.
- Under the ‘Services’ tab, click on ‘View/Verify Canceled GSTIN’ from the dropdown menu.
- Enter the GST Identification Number (GSTIN) for which you want to check the cancellation status.
- After entering the GSTIN, click on the ‘Search’ button.
- With the given GSTIN, the portal will provide the current status of the GST registration.
- If the registration is canceled, the portal will indicate the cancellation status along with the effective date.
- For additional confirmation, you can check if a cancellation certificate has been issued. The certificate may be available for download on the portal.
- GST authorities often send confirmation emails or SMS regarding the cancellation. Check your registered email or mobile number for any communication related to the cancellation.
- If you have difficulty checking the status online, you can contact the GST helpdesk for assistance.
Conclusion
Businesses in India must register for GST, and it’s critical to comprehend the cancellation procedure as well. Whether through voluntary application, closure of business, or non-compliance issues, the cancellation process involves a systematic approach on the GST portal. People can simply go to the ‘View/Verify Canceled GSTIN’ part of the official GST portal, log in, and check the status of whether the GST registration is canceled or not. The transparency provided by this process empowers businesses to stay informed about the status of their GST registration, ensuring compliance and avoiding any unintended penalties. Hope after reading the current blog you can easily determine whether your GST registration is canceled or not.
