The registration granted under GST can be cancelled for specified reasons. The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of death of registered person, the legal heirs can apply for cancellation.
Cancellation of GST registration simply means that the taxpayer will not be a GST registered person any more. He will not have to pay or collect GST or claim input tax credit and accordingly, need not file GST returns.
Suo Moto Cancellation by GSTIN
- Non-filing of GST Returns - If a registered person under the regular scheme has not filed GST Returns for 6 months in a row.
- Non-filing of Composition Returns - If a registered person under the composite scheme has not filed GST Returns for 3 months in a row.
- Non-payment of Tax - In case any GST tax evasion is found out from the taxpayer's side, his GST Certificate will be cancelled as a suitable legal action.
- Violation of GST Rules - GST registrant has violated any rules or provisions as, under CGST Act 2017, he will be subject to statutory GST cancellation.
Voluntary Surrender of GSTIN
- Accidental Registration - In case any accidental registration taxpayer can apply for surrender of registration.
- Turnover below Threshold - If taxpayer has turnover below the threshold limit then taxpayer can surrender existing registration.
- Dissolution or Amalgamation of Business - GST cancellation procedure is a must after closure of Business.
Final Return - GSTR 10
- GSTR 10 is to be filed by a taxable person whose registered has been cancelled or surrendered. This return is also called a final return.
- Frequency - It is to be filed once, when GST Registration is cancelled or surrendered.
- Due Date - Within three months of the date of cancellation or date of cancellation order, whichever is later.