The Registration Process for GST Revocation Under The Composition Scheme

As GST registration is mandatory for running a business with a specific turnover, the GST revocation is also essential for declaring that you do not want to close the business at the current moment.

GST cancellation is an easy process, and you can apply for it when the GST registration rule does not apply to you. This situation happens to you when you have closed the business or the turnover does not cross the specific limit. However, different types of GST registration require, following different types of cancellation procedures. This article will tell you how you can do it smoothly or revoke it after cancellation. If you are someone who wants to pursue GST registration cancellation or GSTIN revocation, carry on reading.

Meaning of GST Registration Cancellation

Cancellation of GST registration simply means that the specific taxpayers are not dealing with such an amount in a year that is not under GST, as per GST rule. These taxpayers can apply for GST registration cancellation. After successful cancellation through the GST portal, the taxpayer does not need to file any GST returns. They do not need to pay any tax afterward, and you will not be eligible to claim the Input Tax Credit. However, GST revocation is also possible if you do not want to close the GST account. 

What are the consequences of a GST registry cancellation?

• The taxpayers are not subject to chargeable taxes anymore.
• They have closed the business they used to do
• Want to replace the business with a new one, and the class of the business is changed
• You have to keep in mind that if the GST registration is expired for some certain business, you may be penalized heavily. It is a great offense under the GST Registration Act.

Who can cancel the GST Registration?

There are a lot of authorities that can cancel the GST registration. Here is a list of people who can apply for GST registration. Along with the taxpayer himself, the following personnel can cancel the GST registration:

Here is the list:

• Taxpayers can send a request if turnover is less than the threshold per year. There might be other cases.
• The tax officer can cancel the GST registration of the taxpayer.
• The request can go from legal heirs if the taxpayer is no more.
• Cancellation of GSTIN for migrated Taxpayers
• Migrated taxpayers are the people who were previously used to paying taxes through VAT. When they apply for GSTIN, they can do it following the laws of the GST Act on the portal. 

Usually, the people who used to pay taxes through VAT number paid tax between 5 lakhs to 10 lakhs where the GST threshold is 40 lakhs per annum for goods and 20 lakhs for services. Businesses where the turnover per year is less than 40 lakhs do not need to apply for GST registration, but they can register for GST voluntarily. But, if anybody or any company does their business online, it must require GST registration.

In some special category states GST registration threshold turnover is different from the standard rule. Those states have to register GST if the turnover of the business is 20 lakhs per year and 10 lakhs for services.

The states of this category are Arunachal Pradesh, Mizoram, Nagaland, Manipur, Meghalaya, Tripura, and Sikkim. If the turnover of any business crosses 40 lakhs per annum, they require GST registration irrespective of their location or region.

These taxpayers can also close the GST number if they do not want to continue the business or if the current turnover per annum is less than the recommended amount. The migrated taxpayers must file the forms, GST REG-29 at the government-recommended GST portal.

Learn the steps for canceling the GSTIN for the migrated taxpayers:

Step 1: 

Visit the GST portal, and log in with your ID. Then, you have to click on the Cancellation of Provisional Registration.

Step 2:

The page for GST cancellation will open. As you have logged in, the GSTIN name of your business will display on the screen automatically.

Step 3:

Then, you will get some reasons for cancellation, and you have to select one from them.

Step 4: 

You will be asked whether you have issued any invoices with the tax in the last month, or before the filing of GST cancellation.

Step 5:

You will get some niche to fill up the specific details. In the end, you have to sign off with EVC, when you have a partnership or proprietorship firm. If you manage a company or a LLP firm, you have to sign up with DSC.

You have to keep in mind that businesspeople who have not issued any tax invoices after the last session of tax filing can apply for GST cancellation. But the businesspeople who have issued tax invoices recently cannot apply for it. If you apply for cancellation of GST registration, there is a higher possibility of getting it canceled.

GST Registration Cancellation (Other than Migrated)

Why Do These Businesses Intend to Cancel GST Registration?

• Business discontinuation
• The business has been transformed into another business, goods into services, or vice versa. The business may also be amalgamated, damaged, or business crushed.
• If the business gets damaged, transferred, or amalgamated, it needs to register newly. Hence the old registration needs to be canceled.
• When the business constitution changes (When LLP or private limited company changes to a public limited company, it is called the constitution of business changes)

GST Registration Cancellation Forms for the Above

The taxpayer can follow the online procedure to apply for cancellation of GST registration. They need to fill out the form of GST REG 16. If the form is filed from any legal hair’s end, they must follow the same procedure. Let’s learn the procedure.

• Form GST REG 16 has to be filed for GST registry cancellation.
• You have to include in the form:

• Details of the payment
• Liability thereon
• Details of input, finished or semi-finished goods held in stock, on the date on which the cancellation request of GST has been initiated.

• For canceling the GST registration, the GST REG 19 form has to be filed by the specific and responsible officer within 30 days of the application for cancellation. The cancellation will come into effect when the respective officer feels, that all the necessary documents or data are clear and the application is valid. As soon as it is done, the officer will notify the taxable person.

Cancellation by the Tax Officer

• The reason for canceling the GST registration by the tax officer may vary from one situation to another situation. The tax officer can cancel the GST registration if the taxpayer:
• If the taxpayer does not run the business at the declared business location
• If the taxpayer violates the rules of provisions (issuing invoices without paying any goods or services)
• If they violate anti-profiteering provisions (not passing the Input Tax Credit benefits to the customers).
• Some additional rules have been added for GST registry cancellation on 1st January 2021. They are the following:
• If the taxpayer violates rule 86B in GST registration. Utilization of 99 percent Input Tax Credit and must pay 28,000 cash.  
• A person who cannot pay taxes through GSTR-1 for the reason of GSTR-3 B not being filed for more than two consecutive periods (months/quarter for tax payment)
• If it is noticed that the taxpayer violates the provisions of section 16 in the GST act, the officer can cancel the GST number.

Procedure to Follow for the Cancellation of GST Registration:

• If the respective officer finds a proper reason for GST registration cancellation, they can send a show-cause notice to the taxpayer. The related form for it is form GST REG-17.
• The taxpayer has to fill out the form REG–18 within 7 days and reply to the notice with a proper reason to prevent the cancellation of the GST number.
• If the reply is satisfactory, the respective officer will pass an order by filling out the form GST REG-20.
• If the answer is not satisfactory and the officer considers that the GST registration needs to be canceled, he will send an order copy by filling out the GST REG- 19. The taxpayer will receive the reply for cancellation within 30 days of the reply they have made.

GST Revocation After Cancellation of Registration:

What is GST revocation cancellation?

Revocation of cancellation of GST registration means that the official decision of GST registration cancellation will be reversed and the registration will remain valid.  

When is the revocation of GST cancellation applicable?

When the tax officer has decided to cancel from their end for a taxable business, the taxpayer can again apply for the revocation of cancellation of GSTIN within 30 days from the day of the cancellation order.

What is the procedure for GST Revocation?

• A person having GST registration can apply for revocation of cancellation by filling out the form REG-21 on cancellation of suo moto process by the officer.
• The application must be filed in 30 days through the government portal of GST registration.
• On satisfaction of fulfilling the terms and conditions and the reasons shown by the taxpayer, the GST officer can accept the revocation of cancellation in the form of REG-05. They will communicate with the taxpayer very soon. The reason for the revocation request will be recorded in writing form.
• The officer sends a notice showing the cause for revocation of cancellation through the form of GST REG–23.
• The taxpayers will show the reason why the GSTIN cancellation should be reversed. The applicant has to apply by filling up the form of GST REG- 24 within the next 7 days of the issuance of the cancellation request.
• The officer will take the decision and consider whether the applicant is eligible for reversing the GSTIN. The applicant has to file it through the form, GST REG 24.

Note: The Applicant must learn the fact that the application for revocation cannot be acceptable if the GSTIN is canceled for not filing returns. In this case, the returns must be filed along with the payment of all dues of tax, penalty, and interest applied on the due amount.

Online Legal India is dedicated to filing the GST, GSTIN revocation, and all other services related to GST filing, and more. We provide all types of legal services with trust and reputation at a very affordable cost.

Do any business or company revoke GSTIN cancellation?

Yes, there is no restriction for taking GST registration except for cancellation for not paying GST.

If you want to learn about the GST cancellation or GST revocation procedure, you can contact Online Legal India, the most trusted company to assist you in all types of legal services. We are 4.6 Google and 4.5 Trustpilot rated, and reputed in the entire India. To get our service, call us now.