It can be difficult to navigate the GST (Goods and Services Tax) landscape in India, particularly when terminating your GST Registration. Knowing the right process for GST Registration Cancellation is essential, regardless of whether you’re terminating your company, downsizing, or your yearly revenue is below the required registration threshold. To provide a seamless transition for your company, this article will lead you through the why, when, and how of cancelling your GST registration.
Before we get into the discussion, if you are looking for professional help with your GST Registration Cancellation Online in India, contact Eazy Startups today. There is no doubt that such a process involves a lot of complications, but with the assistance of specialists from Eazy Startups, you can avoid all complications along the path. Thus, you can achieve a hassle-free GST Registration Cancellation. Contact us today if you need the best help with GST Apply Online or GST cancellation for your startups.
Now, let’s dive into the detailed discussion of the topic:-
- When to Cancel GST Registration
- Application Process
- Timelines for Approval
- Consequences of Cancellation
- Revocation of Cancellation
When to Cancel GST Registration:
There are several situations in which business owners can voluntarily apply for GST Registration Cancellation, such as:–
- Business closure or transfer of ownership
- Revenue dropping below the GST threshold
- Switching from a regular to a composition scheme
- Merger or acquisition of your business
- Any other reason to discontinue your business
If you are facing any of the above-mentioned situations and want professional help cancelling your GST Registration, contact Eazy Startups today.
Application Process:
To apply for voluntary GST cancellation, you need to file an application on the GST Portal with the following details:
- Reason for GST Registration Cancellation Request
- Details of inputs/capital goods in stock, along with input tax credit
- Tax payments for the relevant period
- Tax liabilities that are pending
- Particulars of the sold or disposed assets
You must file a final GST Return in Form GSTR-10 detailing relevant transactions like sales, purchases, and taxes. Any excess input tax credit must also be claimed before cancellation is approved.
Timelines for Approval:
The tax officer will review your cancellation request and may ask for clarifications within seven working days. Normally, approval is provided within 30 days of filing Form GSTR-10. However, it may take up to 90 days in certain cases. You also have to pay any unpaid taxes to obtain the approval. Post successful cancellation, a cancellation order is issued in Form GST REG-19.
Consequences of Cancellation:
After your GST Registration cancellation, there are some key consequences applicable:-
- Any remaining input tax credit will lapse and cannot be claimed
- You must file a final return in Form GSTR-10 within three months
- Can only claim refunds filed before the date of cancellation
- Need to destroy all unused invoices/letterheads
- Liable to pay back any unpaid taxes or pending dues
Revocation of Cancellation:
It is possible to revoke the GST Registration Cancellation within 30 days of the effective cancellation date if you need to resume business operations. You can submit an online application in Form GST REG-21 citing the reasons for revocation.
The tax officer will cancel the initial cancellation order if your explanation is valid and you pay the applicable GST dues. It reactivates your GSTIN.
Closing Note
Removing your GST Registration is a big decision that needs to be planned and thought through carefully. You can seamlessly move your company onto the next stage while maintaining compliance with GST rules and regulations if you comprehend the procedure and make the necessary preparations. Always keep up with the most recent revisions to the GST regulations, and if you need specific guidance or support, think about speaking with our expert professionals at Eazy Startups. We can help you avoid all complications of GST Registration Cancellation Online in India.
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