GST Cancellation Process | How to Cancel GST Registration | How to Close Surrender GST Number

Summary

This video provides a comprehensive guide on how to cancel or surrender GST registration in India. It covers various reasons for cancellation, such as business closure, turnover changes, and mergers. The video explains the step-by-step process for GST cancellation, required documentation, and key actions needed before applying for cancellation. Additionally, it highlights the necessity of filing GSTR-10 after cancellation to avoid penalties. Aimed at business owners and accountants, this video offers essential insights for anyone looking to navigate the GST cancellation process smoothly.

Takeaways

• 😀 You can cancel your GST registration if your business has been closed, your turnover falls below the GST threshold, or your business has merged with another entity.
• 😀 Ensure that all GST returns (such as GSTR-1, GSTR-2, and GSTR-3B) are filed before applying for GST cancellation, even if no business transactions have occurred.
• 😀 Any outstanding tax liabilities or notices must be cleared before submitting a GST cancellation application.
• 😀 If you have closing stock, you must reverse any unclaimed Input Tax Credit (ITC) before applying for cancellation.
• 😀 You don't need specific documents for GST cancellation, but login details and business closure proof are required in certain cases.
• 😀 Professional fees may be charged if you hire a GST consultant to assist with the cancellation process.
• 😀 You can file for GST cancellation by logging into the GST portal and selecting the 'Application for Cancellation of Registration' option under the 'Registration' tab.
• 😀 Ensure that all details like GST number, business name, and future correspondence address are accurately filled in the application form.
• 😀 The GST cancellation application status will initially show as 'Suspended', awaiting approval from government officers before final cancellation.
• 😀 After cancellation, you must file GST R10 within three months, or face penalties for late filing.
• 😀 If you have goods without invoices (e.g., in case of a small business), you may need to upload a CA certificate while filing GST R10.

Q & A

What are the common reasons for canceling a GST registration?

Common reasons for canceling GST registration include business closure, falling below the GST threshold limit, merging with another entity, or changing the business structure (e.g., from proprietorship to a company).

What steps must be taken before applying for GST cancellation?

Before applying for GST cancellation, ensure all GST returns (including GSTR-1, GSTR-3B, etc.) are filed, clear any pending tax liabilities or notices, and reverse any Input Tax Credit (ITC) on closing stock.

Are there any fees for canceling a GST registration?

No government fee is required for GST cancellation. However, if you hire a professional to assist you, they may charge a service fee.

Do I need to provide any documents for GST cancellation?

Generally, no specific documents are required, but you will need login details for the GST portal. In some cases, business closure proof or a board resolution (for companies) may be required.

How do I submit the GST cancellation request on the portal?

To submit a GST cancellation request, log in to the GST portal, go to 'Services' > 'Registration' > 'Application for Cancellation of Registration,' and fill in the necessary details, including the reason for cancellation and future correspondence address.

What should I do if my business location changes before canceling GST?

If your business location changes, provide the new address for future correspondence during the GST cancellation application. If the principal place of business remains the same, you can select the option to keep the address unchanged.

What are the consequences if I don’t file GSTR-10 after GST cancellation?

Failure to file GSTR-10 within the required 3-month period after GST cancellation can result in a penalty of ₹1 per day or up to ₹1,000,000, depending on the severity of the delay.

What is the role of GST officers in the cancellation process?

After you submit your cancellation application, the GST officer must approve or reject the request. Your GST registration status will remain 'suspended' until the government approval is granted.

How do I file GSTR-10 after GST cancellation?

To file GSTR-10, log in to the GST portal, go to 'Returns' > 'Final Return,' and enter the necessary details about your stock, liabilities, and any credits. Ensure you file it within 3 months of receiving the GST cancellation approval.

What happens to my GST status after I apply for cancellation?

After applying for GST cancellation, your status will be shown as 'Suspended.' The final cancellation will only occur once the government approves the request, and the status will change to 'Cancelled.'