How to Cancel GST Registration Online?
Cancelling a GST registration is just as important as obtaining one. Whether a business has been shut down, merged, transferred, or no longer meets the threshold limit for GST, cancelling the GST number is a legal responsibility that must not be ignored. The cancellation process ensures that the taxpayer is no longer liable to file returns or comply with GST requirements. Let’s understand when, why, and how GST registration can be cancelled online in India.
When Can a GST Registration Be Cancelled?
GST registration may be cancelled voluntarily by the taxpayer or by the authorities in certain circumstances. If a business is discontinued, transferred, or closed, the owner may apply for cancellation. Similarly, if the business was registered under GST but later found ineligible or non-compliant, the tax officer may cancel the registration after due process.
Businesses that fall below the threshold turnover for GST registration and no longer wish to file returns can also choose to cancel their GST number. In some cases, cancellation is necessary when two or more businesses merge or when the structure of a business changes significantly.
Reasons to Cancel GST Registration
There are several valid reasons why a business owner may choose to cancel GST registration. One of the most common reasons is business closure. If the business has ceased operations permanently or has been sold, then continuing with GST compliance makes no sense.
Another situation arises when the annual turnover of the business drops below the GST threshold, and the owner decides not to opt for voluntary registration anymore. If a taxpayer has obtained GST registration by mistake or without understanding its obligations, cancellation might also be the appropriate step.
Who Can Cancel GST Registration?
The cancellation can be initiated by the following:
• A taxpayer who has registered voluntarily or mandatorily
• A legal heir, in case of death of the proprietor
• A tax officer, in case of non-compliance or violations
Each scenario follows a different approach, but the final outcome is the same — removal of the GSTIN and stoppage of related compliance requirements.
Process of Cancelling GST Registration Online
GST registration cancellation can be done completely online through the official GST portal. The process involves logging into the portal using valid credentials, selecting the cancellation application, submitting the required reason for cancellation, and completing the verification.
Once the application is submitted, the tax officer reviews the request. If everything is in order and no pending liabilities exist, the cancellation is approved and an official order is issued. In some cases, the taxpayer may need to respond to notices or submit final returns before cancellation is completed.
Final Return Requirement
Before cancellation is approved, the registered person is required to file a final return in Form GSTR-10. This is a one-time return that declares any remaining stock or liabilities as of the cancellation date. Failing to file this return may delay or block the cancellation request.
Final returns ensure that all obligations under GST are cleared and there are no loose ends left. It also helps the department track inventory and tax credits associated with the business.
Things to Remember After Cancellation
Once the GST registration is cancelled, the taxpayer is no longer required to collect GST, file returns, or issue tax invoices. However, if the business is restarted or crosses the threshold again in the future, the owner will need to apply for a fresh GST registration.
Cancelled GST numbers cannot be used for any transactions, and the business must stop using the GSTIN on invoices, websites, and communication materials. Failure to comply with these norms could attract penalties or future complications.
FAQ's About GSTIN Number for Proprietorship
1. Can I cancel my GST registration voluntarily?
Yes, if your business has closed, your turnover falls below the threshold, or you no longer need GST, you can apply for voluntary cancellation online.
2. Is filing a final return necessary after cancellation?
Yes, you must file a final return in Form GSTR-10 within three months from the date of cancellation or order, whichever is later.
3. How long does it take to cancel GST registration?
If there are no issues, the cancellation request is usually processed within 7 to 10 working days after application submission and verification.
4. What happens after my GST registration is cancelled?
You are no longer liable to collect or pay GST, file returns, or use your GSTIN. You must remove the GST number from all invoices and documents.
5. Can the tax officer cancel my GST registration?
Yes, the officer can cancel it for non-filing of returns, incorrect registration, or violations of GST law. You will be notified before cancellation.
