GST Registration Cancellation

Voluntary GST Cancellation

You may cancel voluntarily if your business is no longer operational or falls below the mandated registration threshold. It involves filing all pending returns and submitting the form online.

If a person or entity with GST registration wishes to cancel their GST registration, a cancellation request must be submitted to the GST Department. After reviewing the application, if the GST Officer is satisfied, he will issue an order to terminate GST registration in Form GST REG-19.

Voluntarily canceling a GST registration can save the business owner from the unnecessary hassles of filing GST returns each month and payment of penalty or late-filing fee.

Reasons for Cancellation of GST Registration

GST registration can be cancelled by the taxpayer due to various reasons. Here are the key reasons for such cancellations:

Initiated by the Taxpayer:

• Discontinuation or Closure of Business: When business operations are permanently closed or discontinued, the taxpayer can file for the cancellation of GST registration.
• Business Transfer: If the business is transferred, merged, sold, leased, or disposed of, the taxpayer may opt to cancel the GST registration. 
• Change in Business Structure: When the business structure changes, such as converting a partnership firm into a corporation, the taxpayer must cancel the existing GST registration.
• No Longer Liable to Pay GST: If the taxpayer’s turnover falls below the GST threshold limit and is no longer required, the taxpayer must apply for cancellation.
• Voluntary Cancellation: A taxpayer may voluntarily cancel the GST registration for personal or business reasons.

Time limit for cancellation of GST registration

• The time limit for cancellation of GST registration varies depending on the circumstance that prompts the cancellation.
• For voluntary cancellations, a taxpayer can apply any time after registration if they believe they are no longer liable to be registered under GST.
• Taxpayers know about how to close GST number and must file for cancellation within 30 days of becoming aware of any circumstance warranting cancellation, such as discontinuation of business or change in the business structure.