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GST Cancellation
Blogs Goods and service Tax (GST)

GST Cancellation

An overview of GST cancellation

In this post, We will discuss the cancellation of GST registration and its procedures.  Let’s take a closer look at each of these sections: 

Meaning of cancellation of GST registration

A cancelled GST registration simply means that the taxpayer no longer qualifies for GST benefits. Therefore, he does not need to file a GST return and does not have to pay or collect GST.

Consequences of GST registration cancellation

  • The taxpayer will no longer pay GST.
  • GST registration is necessary for some businesses. It would be an offence under GST to cancel a GST registration while continuing to do business. Heavy penalties would apply if the GST registration was cancelled and the business was continued.

How can I cancel my GST registration?

1, Log in to the GST Portal using your user ID and Password. 2, Select Services > Registration > Application for Cancellation of Registration.
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3, There are three tabs on the Application for Cancellation of Registration form. Make sure that the Basic Details tab is set as the default.
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4, Fill in your Address for Future Correspondence manually, or tick the option Address same as above to copy the same address as in the Address of Principal Place of Business box.
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5, Click the SAVE & CONTINUE button.
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6, Choose an appropriate reason from the Reason for Cancellation drop-down menu.
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Notes: The following five reasons are available for selection:

a) Change in constitution of business leading to change in PAN

b) Ceased to be liable to pay tax

c) Discontinuance of business / Closure of business

d) Others

e) Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise

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Select the appropriate reason for the cancellation and the Click the SAVE & CONTINUE button.

7, Check the Verification statement box to confirm that the information provided in this form is accurate and correct, and that nothing has been hidden.

8, Select the authorised signatory’s name from the Name of Authorised Signatory drop-down menu.

9, Enter the location of the declaration.

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10, Use your Digital Signature Certificate (DSC) or the EVC option to sign the form.
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11, Enter the OTP
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Notes:

  • When the application for cancellation of registration is successfully submitted, the system will create the ARN and display a confirmation message.
  • GST Portal will also send a confirmation message to your registered mobile phone number and email address.
  • Following this stage, the Tax Official in charge will analyse your application and make a judgement.
12, To view the ARN, go to Services > Registration > Track Application Status.
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  1. Click the Submit Period radio button.
  2. Enter the dates between which you applied for registration cancellation.
  3. Select the SEARCH option.
Note: Please keep in mind that the search result will reflect the ARN associated with your filed application.
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This completes the cancellation process and the tax payer will be informed on processing the cancellation with its statues.

How to claim a refund under GST

Usually, people registered under GST pay more tax than they should because of mistakes in their GST returns or tax payments. In such situations, customers have the option of requesting a refund by submitting an application along with the reasons. The person has the right to a refund of any taxes, interest, penalties, fees, or other money he has paid.

Refund under GST is available in the following cases:

  • Excess balance in the Electronic Cash Ledger
  • ITC on tax-free exports of goods and services
  • Supplies delivered to an SEZ unit/developer with or without payment of tax
  • ITC gained as a result of the inverted tax structure 
  • Refund of considered export by the receiver
  • Service export with tax payment 
  • Tax paid on an intra-state supply that is subsequently determined to be an inter-state supply, and vice versa
  • Refund of considered export by the supplier
  • Excessive tax payment 
  • Other justifications, if any 
  • Assessment, Provisional assessment, Appeal, or any different order.

The time limit for making a refund application:

Applicants must apply within two years of the relevant date. The GST Act offers many “Relevant dates” for a variety of refund cases.

Application form for claiming refund:

Name of the document: “FORM GST RFD-01.” (With the exception of the IGST return paid on items exported outside India).

Procedure:

  • Login to the GST portal
  • Select Services> Refund> Application for refund. 
  • Choose a refund type and click Create. 
  • Please fill in the requested information, such as the type of refund, amount of refund, and bank account number.
  • Check the declaration box. 
  • Proceed by selecting the name of the authorised signatory. 
  • Choose either “File with DSC” or “File with EVC” [In case of DSC, select the certificate and sign; in case of EVC, enter the OTP sent to the registered mobile number and e-mail address of the authorised signatory and verify].
  • When an application is successfully filed, an ARN (Application Reference Number) is created. You can save the ARN receipt for future use.
  • ARN can be used to track the status of a refund application.
And with that, we end our discussion on the cancellation of GST. If you have any questions, drop them in the comment section below.
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