Revocation of GST Registration Cancellation

The proper officer may, either on his motion or an application filed, in case of death of such registered person, by his legal heirs, cancel the registration.

Where the business has been:

• discontinued, 
• transferred fully for any reason
• death of the proprietor, 
• amalgamated with other legal entity,
• demerged or 
• otherwise disposed of

or there is any constitutional change of the business of

the taxable person or the person registered is no longer liable to be registered under section 22 or section 24, the registration needs to be canceled.

Registration may be canceled by the proper officer if :

• The person Paying tax under relevant sec has not furnished returns for three consecutive tax periods.
• A registered person has contravened the prescribed provisions 
• The person who registered Voluntarily failed to commence the business within 6 months from the date of registration.
• Registration was obtained by means of 
  • fraud, 
  • willful misstatement or
  • suppression of facts

• Returns for a continuous period of 6 months have not been filed by any registered person, other than a person specified in the clause.

Note:

Cancellation of registration shall not affect:

• the liability to pay tax and other dues accrued under this Act;
• the obligation to be discharged under this Act;
• the rules made thereunder for any period before the date of cancellation whether such tax and other dues are determined before or after the date of cancellation.

Cancellation by Taxpayer

Cancellation of registration on the following grounds:

• Every business exceeding the threshold limit is liable to mandatorily take registration under the GST act. However, the registered person can opt for GST cancellation if the annual turnover of the business drops below the specified threshold limit.
• The taxpayer has transferred or merged the business with another organization or vice versa. In this case, the transferee (or the new company from amalgamation/ demerger) has to get registration under GST.
• The taxpayer has discontinued the business.
• Where the constitution of the business has changed.

For cancellation, an E-application in FORM GST REG-29 through the GST Portal shall be filed.

 An authorized officer, after proper inquiry, shall provide cancellation of the registration.

 Cancellation by Authorized Officer

An Authorised officer can cancel GST registration of a taxpayer if,

• The registered person does not conduct business from the place as declared.
• The registered person is issuing invoices without any supply of Goods or Services being affected.
• The registered person violates anti-profiteering provisions

To give effect to the cancellation of registration of a given business, the authorised officer is required to follow the following procedure:

• Authority notifies the concerned person by sending show cause notice in FORM GST REG -17
• The registered person is required to reply in FORM GST REG -18 within 7 days, for any disagreement with the show cause notice.
• The authorised officer can drop the proceedings and pass an order in the FORM GST REG –20  if he finds the reply to be satisfactory.
• The authorised officer will, however, issue an order in FORM GST REG-19 , if the registered person fails to justify as to why his/her registration should not be cancelled. The order will be sent within 30 days from the date of reply to the show cause

Revocation of Cancellation under GST:

In case of cancellation imposed by an authorized officer, the given taxpayer can apply for revocation of cancellation within 30 days from the date of the cancellation order.

Process:

1. Applies, on GST Portal, for revocation of cancellation through FORM GST REG-21  
2. Where an authorized officer is satisfied with the reason provided by the taxpayer, he is required to:
   • Record the reasons for the revocation of the cancellation of registration in writing.
   •  Reverse the cancellation of registration.
   • Pass an order of revocation in FORM GST REG-22.
3. However, he can reject the application for revocation if the reason submitted by the taxpayer is not found satisfactory to the authorized officer. The officer is required to pass an order in FORM GST REG-05 and the same shall be communicated to the applicant.
4. The proper officer, before rejecting, must issue a show-cause notice in FORM GST REG–23 to the applicant to show as to why the application should not be rejected. 
5. The reply, in FORM GST REG-24, must be made by the applicant, within 7 working days from the date of the service of the notice.
6. The proper officer needs to form/take his opinion/decision within 30 days from the date of receipt of clarification from the applicant in FORM GST REG-24.