GST Cancellation
An overview of GST cancellation
- Meaning of cancellation of GST registration
- Consequences of GST registration cancellation
- How can I cancel my GST registration?
- How to claim a refund under GST
- Refund under GST is available in the following cases:
- The time limit for making a refund application:
- Application form for claiming refund:
- Procedure:
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?
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
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.
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.
- Click the Submit Period radio button.
- Enter the dates between which you applied for registration cancellation.
- Select the SEARCH option.
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:
Application form for claiming refund:
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.
