GST REGISTRATION CANCEL OR SURRENDER

Now a Days, GST is the most discussing topics in India. All of us are still confused about the process for registration, filling the return forms, tax challan, e-way bill and other forms for GST.

But these days a major issue which is arising is that how to surrender our GST Registration? and where to surrender for GST Registration Certificate.

If you have applied GST by mistake and got registration certificate form GST and you worried that what should be the further process.

If you have wrongly registered for GST and want to surrender your GST Registration, one can cancel GST Registration only if the annual turnover of his business is less than ₹20 lacs (total of sale and unregistered purchase).

Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.

As per Section 29 of CGST ACT :

(1) The appropriate officer may, on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration in such and such manner as prescribed Can be done, in relation to circumstances where -

(a) The business is closed, transferred completely for any reason, including the death of the proprietor, amalgamated, demolished or otherwise dealt with by another legal entity; Or

(b) is there any change in the constitution of the business; Or

(c) The taxable person is not liable to be registered under section 22 or section 24, other than a person registered under sub-section (3) of section 25.

(2) The appropriate officer may cancel the registration of a person from such date, including any retrospective date, as he may see fit, where-

(a) A registered person has violated such provisions of the Act or the rules made thereunder; Or

(B) A person paying tax under section 10 has not submitted a return for three consecutive tax periods; Or

(c) Any registered person, other than the person referred to in clause (b), has not submitted the return for a continuous period of six months; Or

(d) No person seeking voluntary registration under sub-section (3) of section 25 has commenced business within six months from the date of registration; Or

(e) Registration has been obtained by fraud, willful misrepresentation or suppression of facts: Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

(3) The rules made for cancellation of registration under this section for payment of taxes and other liabilities under this Act or for the discharge of any obligation under this Act or for any period before the date Will not affect the liability of the person to discharge. Whether or not such taxes and other dues are determined before or after the cancellation date.

(4) Cancellation of registration under the State Goods and Services Tax Act or Union Territory Goods and Services Tax Act, as the case may be, will be deemed to be revoked under this Act.

(5) Every registered person whose registration has been canceled shall pay an amount by way of electronic credit ledger or debit in electronic cash ledger equal to the credit of input tax in respect of inputs contained in stocks and inputs. . The date of immediate cancellation of semi-finished or finished goods held in stock or capital goods or plant and machinery or the output tax payable on such goods, whichever is higher, may be calculated in such manner as may be prescribed. Could:

Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, which may be less than or determined by the prescribed percentage points. is. Under section 15, the tax on the transaction value of such capital goods or plant and machinery, whichever is higher.

(6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.

CGST Rules

A registered person, other than that under a registration rule 12 or a person who has been given a unique identification number under rule 17, is allowed to cancel his registration under sub-section (1). Section 29 will electronically submit an application to FORM GST REG-16, which contains details of inputs kept in stock or inputs kept in stock or capital goods held in stock and capital goods held in stock, the date of which Demands are made, details of liability, details of payment, if any, can be made and presented against such liability, relevant documents accompanying the application, on the general portal, a period of thirty days after the incident concerned. inside. Incident of a cancellation warrant either directly or through a facility center notified by the Commissioner:

Provided that no application for cancellation of registration shall be entertained in the case of a taxable person who has voluntarily registered before the expiry of one year from the effective date of registration.

CGST Rule for Registration to be cancelled in certain cases

The registration granted to a person is liable to be cancelled, if the said person,-

(a) does not conduct any business from the declared place of business; or

(b) issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder; or

(c) violates the provisions of section 171 of the Act or the rules made thereunder.

CGST Rule for Cancellation of registration

(1) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled.

(2) The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM REG–18 within the period specified in the said sub-rule.

(3)Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under sub-rule (1) of rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section (5) of section 29.

(4) Where the reply furnished under sub-rule (2) is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG –20.

(5) The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself.

SURRENDER OR CANCELLATION

GST Registration can be surrender or cancelled through the following three ways:

1. GST surrender By the registered person – A registered person can apply for cancellation of GST Registration by himself.

• â–º If your turnover is less than ₹20 lacs
• â–º If your business has been discontinued
• â–º Death of the Proprietor in case of sole proprietorship
• â–º If the business is no longer liable to GST (like you have taken registration for the sake you trade inter-state but later government relaxed the norms that GST registration not mandatory for inter-state trade)
• â–º Because you are shutting down your business or profession.
• â–º Or any other issue.

2. By GST Officer – GST officer can cancel the registration if the organization falls under following conditions: –

• â–º If the Organization has violated any law against GST.
• â–º A composition registered person has not filed tax for three consecutive years.
• â–º If the registration process has been done through fraud methods.
• â–º If the registered company has not generated any business from the last six months after registration for GST.
• â–º Or any other issue.

3. GST surrender By Legal Hirer – A legal hirer can apply for cancellation of GST Registration after Death of the Proprietor in case of sole proprietorship