Situations under which the taxpayer request for GST cancellation:
- Where the business has been shut down
- Where the business has been transferred fully owing to death of proprietor or it has been amalgamated, merged or demerged or otherwise disposed- In all such cases, the transferor will cancel registration if it ceases to exist
- Change in constitution of business namely conversion of partnership to private limited co. or private limited co. to public limited co.
- Where the business entity is no longer liable for GST registration. For example: turnover falling below threshold limit or goods sold by entity becoming exempted
An application for cancellation for GST registration is to be made in Form GST REG-16 on GST portal. The following details must be given in Form GST REG-16:-
- Contact address which includes mobile number and email id
- Grounds of cancellation and desired date of cancellation
- Details of registration of the entity if the existing unit merged, amalgamated or transferred i.e. GSTIN of transferee entity
- Details of inputs, semi finished, finished goods held in stock on the date on which cancellation of registration is applied & liability on such inputs
- Details of Stock of capital goods/plant & machinery on the date of application
- Set off liability arising above either through electronic credit ledger or electronic cash ledger- payment can be made even during submission of final return in GSTR-10
- Particulars of the latest return filed by taxpayer along with the ARN of the return
The proper officer shall issue order for cancellation in FORM GST REG-19 within 30 days from the date of application. The cancellation will be effective from a date determined and notified by the officer.
Final Return: After cancellation of registration, taxpayer is required to file a final GST return in Form GSTR-10 within 3 months of the date of cancellation.
