GST Cancellation

Voluntary GST Cancellation

GST registration can be canceled voluntarily if the business is dormant or does not have the necessary business turnover. It can also be canceled by a GST officer if the business is non-compliant. A person can submit an application using Form GST REG-16 along with a reason.

• Discontinuance or closure of business
• Transfer/amalgamation/merger/de-merger/lease/others
• Change in business constitution resulting in new PAN
• Turnover falls below threshold limit
• Death of sole proprietor

Revocation of GST Cancellation

Revocation means reversing the cancellation decision when it was wrongly done or the reason no longer applies. Taxpayers can file Form GST REG-21 within 30 days of cancellation to request revocation.

If the officer is satisfied, they can revoke the cancellation via Form REG-22. If rejected, a notice will be issued via Form REG-23 and the taxpayer can reply using Form REG-24.

Benefits of Voluntary GST Cancellation

Voluntarily canceling your GST registration saves you from monthly compliance and penalties for late filing. Businesses that no longer need a GST number should cancel it to avoid liabilities.