HOW TO SURRENDER GSTIN NUMBER AND WHEN IT CAN BE CANCELLED

Now a Days, GST is that the most discussing topics in India. All folks are still confused about the method for registration, filling the return forms, tax challan, e-way bill and other forms for GST. It’s also mandatory sure other individuals including UIN holders, e-commerce operators, persons deducting TCS/TDS, etc. of these entities at interludes need to file GST returns and took rules & regulations stated under the GST Act aside from provisions specified for registration.

Central Tax Authority will cancel the GSTIN issued to the taxpayer by the Cancellation of GST Registration. With the help of GSTIN Cancellation, he will not be the authorized person anymore and irrecoverable from him as he is not a registered person under GST and there is no system to pay or collect the GST anymore.

There are numerous amount of cases in which GST is required to get a cancellation. But in today’s era a significant issue is on rising mode of how to surrender GSTIN number and where the surrender of GST Registration Certificate can be done.

A registered person who is having a GST registration can surrender GSTIN number by filing a return in the form of GSTR-10. This return is called a final return. Most of persons or entities who supply goods and services in India are having a GST registration number.

And after obtaining the GST number, sometimes the business owner required the surrender of GST registration for the same a proper application with clarification, and return filings are to be complied for being eligible for the GST surrender process.

The main reason for the surrender of GST registration is a closure of business, transfer of business, change in the constitution. Surrendering the GSTIN number will reduce the requirement of compliance for the taxpayer, as GST return would no longer have to be filed monthly.

One more question is common in GST taxpayers that, what would be the further process if you have applied GST by mistake and received a GST certificate from the department, or how to surrender GST number if applied mistakenly? So, the answer is, you can surrender the GSTIN number only if the annual turnover is less than Rs. 20 lacs. Also, application for the surrender of GST registration shall be made only after one year of getting the GST registration certificate in case of voluntary registration.

Now let’s discuss the GST surrender process:

This process will cover the whole procedure regarding how to surrender GST for the same you need to follow the below-mentioned steps:

1.) Carefully analyze why your business needs the GST surrender process as this will be the lifetime decision.

2.) Secondly, you need to follow a few major steps for knowing how to surrender GST on the GST portal by the applicant himself

3.) The department always asks for the genuine reason for the surrender of GST registration whether the surrender GSTIN number is suo motto by the officer or voluntarily by the applicant.

4.) Officials made the whole compliance treatment of business very abridged. An applicant deciding for the GST surrender process can file the application online on the GST portal without visiting the department.

 5.) The applicant needs to visit the GST portal and click on the cancellation of the GST registration tab.

 6.) Thereafter fill the application accordingly and submit the application after affixing the DSC.

Note: Before visiting the GST portal the applicant must consult with the GST expert to know the process of how to surrender GST number or to know the GST surrender process. If the application is filed without the help of the GST expert there may be chances that the department may call or visit for the clarifications. 

Tagline: Query about how to surrender GST no? Contact our expert team from Neusource.

FAQ on GST Surrender :

Who can proceed GST surrender online?

• GST surrender can be proceeded by a registered taxpayer, by GST officer

or by a legal higher.

What is the GST surrender online process?

• Fill form GST REG – 16 applications for cancellation of GST Registration
  and provide details like liability date, details of payment, inputs, and
  capital goods held in stock.

From where you can proceed GST surrender online?

• You can proceed GST surrender  from the official site of GST i.e.
  https://www.gst.gov.in/

What are the GST surrender online forms available on the GST official website?

• There is only one form available for cancellation of GST i.e. FORM GST
  REG 16

How to surrender GST number in India?

• Log in to the GST official website then click on Cancellation of Provisional
  Registration. The Cancellation page will open. Your GSTIN and name of
  business will show automatically on the dashboard. Also you are required
  to give a reason for cancellation.

Is the question “How To Surrender GST Number In India” is common among
Indian taxpayers?

• Yes, it is a common question which goes in every taxpayer’s mind.

What do you mean by GST surrender:

• It simply means that the taxpayer will not be a GST registered person anymore. He will not have to pay or collect GST.

What are the consequences of GST surrender?

• First, the taxpayer will not pay tax anymore. 
• Second, if the GST registration is cancelled but business is still continued, it will mean an offence under GST and heavy penalties will apply.

What is the form available for GST surrender?

• Application for cancellation has to be made in FORM GST REG 16.

Explain the term gst reg 17.

GST REG 17 is an application for revocation of negated or cancelled enrollment under Goods and Services Act.

Whether a person can revoked the GST application after its cancellation?

By filing form Gst Reg 17, the application can be renounced however it must be documented inside thirty days from the date of the order of cancellation of enrollment.

Any fees are required to pay while filing form GST Reg 17.

No charge is payable for documenting application for Revocation of cancellation (Form Gst Reg 17).

What do you understand by term surrender GSTIN number and cancellation of GSTIN?

A registered person can apply for surrender of GST registration by himself to the GST department or by any legal hirer and cancellation of registration means that the taxpayer will not be treated as GST registered person anymore. He is not required to pay or collect tax from now. Surrender of GST registration and cancellation of GSTIN number are both different aspects where in first case applicant himself applies for the surrender GSTIN number and in the other case GST officer himself cancels the registration if the compliances are not duly complied.

Consequences of Cancellation

The taxpayer will not pay GST anymore

For certain businesses, registration under GST is compulsory. If the GST registration is got cancelled and work of business is still continued, it will mean an offence under GST and heavy penalties will levy.

Who can get the GST registration at cancellation terms?

1. Requested by taxpayer: Whether turnover is less than 20 lakhs or other case
2. Tax officer
3. Legal heirs in case of death of taxpayer

Cancellation of GST when sales is less than Twenty Lacs

Every person who have registration under previous laws had to compulsory migrated to GST. Persons out of them are not liable to be registered under GST.

Cancellation by taxpayer in other cases

• Need of cancellation of registration arises in which circumstance:

The business has been superseded. Any kind of alteration in the business formation from which entity got lapsed in that case transferee has to get the registration and the transferor need to  cancelled the GSTIN that have been allotted. There is an alteration in the structure of the business (For example- Private limited company has changed to a public limited company).

• Track GST Cancellation Status Online

Under ‘Services’, click ‘Registration’. Many options will be displayed by clicking on the Registration you need to click on the ‘Track Application Status’ option. By the name First is ‘ARN’ and also Second is ‘Submission Period’. Tick the ‘Submission Period’ choice and plug the date after you moved for GST Cancellation so submit ‘Search’ all above option are on the Dashboard.  

Once the status is ‘Approved’ after some days of submission of application for GST Cancellation. This type is that the acknowledgment certificate for your GST Cancellation. To help you understand GST Cancellation procedure, we've created an info graphic on GST Cancellation talks about the procedure moreover because the ways during which GST Cancellation takes place.

Cancellation by tax officer

Conditions for cancelling by tax office are:

Registered holder

• Not doing the business from the place for business mentioned by him
• Disrupts the fraudulent act that's violation of GST Act altogether
• Providing bill or invoice which is against the act

Procedure

• If the authorized officer have strong cause for the gst registration cancellation the notice will be served to that person in the Form GST REG-17.
• Reply need to be made in 7 days start from the date of serving of notice by providing the reason for not to get the GST cancellation.
• Cancellation of order can be done in the form GST REG-20 in case reply is established as suitable.
• The authorized officer will issue an order in FORM GST REG-19 in thirty days, If the registration is liable to be cancelled.

Final Returns

When the registering of a registered person aside from an Input Service Distributor or a non-resident taxable person or individual paying tax under the composition scheme or TDS/TCS; has been void, the person has to submit a final return within 3 months of the date of cancellation or date of cancellation order, whichever is later, in FORM GSTR-10 with the help of the collective portal either directly or through an Enablement Centre specified by the Commissioner.

Myth regarding GST Surrender

Myth: Online GST cancellation takes more time.

Reality: If all the dues are clear and all the previous GST returns are filed till date, then it will take only
fifteen days to one month to surrender GST number.

Conclusion

It’s also mandatory sure other individuals including UIN holders, e-commerce operators, persons deducting TCS/TDS, etc. of these entities at interludes need to file GST returns and took rules & regulations stated under the GST Act aside from provisions specified for registration.

If in case you got the GST registration by fault and registration certificated has allotted from the
GST department then what you need to do is file an application for GST cancellation online to
surrender GST number. Every person who has registration under previous laws had to compulsory migrated to GST. Persons out of them are not liable to be registered under GST.

Any kind of alteration in the business formation from which entity got lapsed in that case transferee has to get the registration and the transferor need to cancel the GSTIN that have been allotted. In case of a diseased person, it is mandatory to surrender GST number by the help of legal heir. Legal heir can file an application for GST cancellation online. Once the status is “Approved” after submitting the GST surrender request, you can download the GST surrender certificate online.

For further query regarding GST surrender, please contact us on Email Id swati@neusourcestartup.com or Contact number 9540026175.

The NeuSource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company Registration, GST Registration, Copyright Registration, ISO Registration Trademark registration and other FSSAI License etc.

CS Jagriti Mehndiratta

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